Pre-Paid Plan:

If I were to buy an iPhone 5s for $649 my data plan would be $35 per month. That means after one year I would spend: ~$1070

Regular Plan:

If I were to get the same plan with a subsidized phone I would pay $100-200 up front and my monthly payment would be $70-90. After 1 year I would have spent: ~$1214.92

And would still be locked in for a second year.

How about after 2 years?

So after 2 years on prepaid I would pay: ~$1489.

On contract it would be ~$2329.84.

That’s a $840 difference. Enough to buy another phone out right the second year if I wanted to.

Related articles

• Phase 3 of T-Mobile’s Uncarrier plan: No more new customer deposits? (phonearena.com)
• New iPhone – Contract or Outright? (reckoner.com.au)
• Walmart offers iPhone 5s for $189, iPhone 5c pre-orders for $79 with two-year contract (theverge.com)