Cellphone Plan Calculator

With so many phone-purchasing options offered by various carriers, it can be a daunting challenge to choose the right plan. While some people prefer solid discounts when buying a new cell phone, others go for traditional 2-year contracts. Also, many customers shop for phones online. What’s the best option? Which type of contract should you choose?

Our calculator can help you reveal the most profitable way to buy a cell phone by comparing different plans. With this useful tool, you will save money and do not overpay for phones anymore. It will help you determine which contact is more affordable and how much money you can save every month.

It’s very easy to use. Simply enter a few numbers – such as phone price, contract duration, and your monthly bill – and the calculator will let you know how much the total cost will be for any particular plan. This means you will have to discover these figures (visit your carrier’s site or ask them) beforehand. After plugging these numbers into our calculator, you will quickly find out which option is less expensive: getting a carrier plan or buying a phone outright. Let’s check it out!

1^st Option: Buying a Smartphone Outright

Buying a cell phone outright without a carrier plan is an option for many people. It saves you from paying monthly payments, and you’ll have peace of mind knowing that your phone will work even if the company discontinues service.

This can be a good way to save money on your monthly bill, but it does come with some risks. One of the risks is that you will not have the same network coverage as you would get with a carrier plan. The other risk is that if you lose your phone, then you will have to pay the full retail price for another one.

If you choose this option, then you will need to take into account the following 3 values:

1. Phone price – Some people choose to buy their cell phones outright because they don’t want to sign up for a monthly payment plan. For this reason, buying a cell phone outright can be a good idea. If the company discontinues service, your phone will still work. Yet, you need to consider the phone price first.
2. Contract duration – If you use a pre-paid card, then there’s no contract to sign. That’s why this value is treated as the time (in months) after which the cell phone will probably be replaced. It is usually 24 months because most people replace their Smartphone after 2 years.
3. Monthly bill – The monthly bill can be a pain to deal with. It is hard to keep track of all the numbers and find out what you are paying for. This is where a breakdown of your monthly cell phone bill can come in handy. There are many different types of fees that make up the total cost of your cell phone bill. There are three main categories: service charges, taxes & regulatory fees, and other miscellaneous charges.

Now that you know how this option works, it is time to see how the total cost is calculated in this case. Use the formula below:

Cost = Phone price + Monthly Bill * Contract Duration

Example

• Contract Duration: 24 months
• Phone Price: $1,200
• Monthly bill: $50

If we assume that you have a 2-year contract, meaning it will take 24 months in total, while the phone you want to buy is worth $1,200 and you are required to pay 50 dollars each month for services, then the total cost of your plan will be $2,400. Take a look below:

Total Cost = 1,200 + 50 * 24 = 1,200 + 1,200 = $2,400

2^nd Option: Buying a Smartphone from a Carrier with a Plan

If you’re looking to buy a phone from a carrier, you will have to go through the following steps when calculating the cost of your phone plan:

• First, reveal the phone price;
• Then determine the length of your contract (the phone plan duration);
• Next, you should check your monthly bill and interest rate;
• The last step involves calculating the total cost of your plan – you can either employ our calculator (easier way) or calculate it yourself using the Cell Phone Plan Formula:

Cost = Monthly Bill * Contract Duration – Savings

Example

• Contract Duration: 24 months
• Phone Price: $1,200
• Interest Rate: 2.00%
• Monthly bill: $100

With these values, you will get that the interest from investing is $23.61, while the total cost is $2,376.39.

So, what’s the conclusion? In our example, the total cost is very similar. In fact, you will need to pay $2,400 if you decide to buy a phone outright. If you want to acquire the phone through a carrier plan, then you will have to pay a total of $2,376.39 for the next two years. This means you’ll save about $24 by choosing a phone-buying plan.

However, you need to compare the total costs with your numbers. That said, evaluate the costs of your own variants using our calculator and find out which option is cheaper for you. That will help you select the more profitable option and save a lot of money in the long run.

FAQs

What’s a Cell Phone Plan?

A cell phone plan is a subscription that provides a customer with a certain number of minutes, texts, and data for their cell phone. This is actually a contract between the customer (subscriber) and the carrier (cell phone provider) for using cellular services. It requires the customer to pay bills every month for services used.

A cell phone plan can be as simple as one with just voice service, or it can include other services such as texting, data, and international roaming. While a typical contract lasts for one year, some providers offer plans that last for two years or more.

Is the Cost of the Cell Phone Included in Your Plan?

Well, this will depend on what type of contract you have signed, i.e., the plan you’ve gotten. Your monthly bill will probably not include the phone price if you’ve already owned it before signing the agreement, providing that you will keep that cell phone. Even so, you should ask your carrier what’s included in your plan to make things clear.