Cell Phone Plan Calculator

How to Use the Cell Phone Plan Calculator

Enter the following for each plan: your contract length, your interest rate (if you would like to include opportunity cost), the upfront price of the phone, and the monthly bill. The calculator will then tell you the total cost for each option and which one is cheaper.

• Compare the overall cost of buying a phone outright vs a carrier plan
• See how interest rate and opportunity cost affect your calculations
• Use your results to make an informed decision the next time you need to buy a phone

How the Calculation Works

• Buying Outright: Total cost = Phone price + (Monthly bill × Contract duration)
• Carrier Plan: Total cost = Monthly bill × Contract duration
• Interest from Investing: Buying a phone outright means you don’t have as much money to invest elsewhere. If you want to know what interest (opportunity cost) you could be missing out on, enter an interest rate in the calculator and it will work it into the total cost for the buying-outright option

Tips for Saving on Cell Phone Costs

• Shop around and compare different carriers and plans before deciding.
• Take advantage of seasonal sales, student discounts, or trade-in offers.
• Buy a previous-generation phone to save money.
• Review your actual data and call usage to ensure you’re not paying for features you don’t use.
• Check if your employer or organization has corporate discounts on phone plans.

Buying Outright vs. Carrier Phone-Buying Plan: Pros and Cons

Frequently Asked Questions (FAQ)