Phone Upgrade Cost Per Month Calculator: True Monthly Cost of a New Phone
Turn a new phone into its true monthly cost after trade-in, resale, accessories, sales tax, protection plan and financing interest, see how the cost per month falls the longer you keep it, and compare upgrading now with keeping your current phone a while longer.
How it works
Net cost = price − trade-in − resale + accessories + sales tax + financing interest + protection plan × months + repairs · Cost per month = net cost ÷ months kept · Installment = financed × r ÷ (1 − (1 + r)^−n), r = APR ÷ 12 · Keeping your current phone = (trade-in now − trade-in later + repairs) ÷ months waited
A phone price is a lump sum, but upgrading is really a decision about how much it costs you per month to own a phone. Start from the price, subtract what your old phone is worth now and what the new one will be worth when you sell it, then add the extras that come with it: accessories, sales tax, a protection plan, repairs and any financing interest. Dividing that net cost by the months you keep the phone gives the true monthly cost. A 0% installment plan does not change this number; it only spreads the payments. The table shows the biggest lever: the same phone kept longer costs much less per month, because the price is spread over more months and phones lose most of their value early. Resale values for other lengths assume the phone keeps losing value at the same yearly rate as your estimate. The comparison under More options shows the cost of waiting. Keeping your current phone is not free: its trade-in value keeps falling and it may need a new battery or screen. Divide that loss by the months you wait and compare it with the new phone's monthly cost. If waiting is much cheaper and the old phone still does what you need, it usually pays to wait.
Worked example
A $1,000 phone with a $200 trade-in and $60 of accessories, kept 36 months and sold for $150 at the end, has a net cost of 1,000 − 200 − 150 + 60 = $710. That is $710 ÷ 36 = $19.72 a month, or $0.65 a day. If the phone keeps losing value at the same rate, kept only 24 months it would resell for about $282 and cost $24.07 a month; kept 48 months, about $16.26 a month. Keeping your current phone 12 more months while its trade-in value drops from $200 to $120 costs (200 − 120) ÷ 12 = $6.67 a month, so waiting saves about $13.06 a month, or $156.67 over the year.
Sources: Apple: trade-in values depend on model, condition and configuration · Apple: iPhone Upgrade Program ending, leasing and financing options
Frequently asked questions
How does keeping a phone longer change the cost?
It spreads the net cost over more months, and phones lose value fastest in the first year or two. In the default example the monthly cost falls from about $24 at two years to about $20 at three years and $16 at four.
Should I count the resale value if I never sell my phones?
Only if you really will sell or trade it in. If old phones end up in a drawer, set the resale value to 0; an unsold phone saves you nothing and your true monthly cost is higher.
Is a carrier installment plan cheaper?
A 0% installment plan costs the same as paying outright; it only splits the price into payments. A plan with interest costs more, which you can see by entering the APR and term. Carrier deals can also tie you to a more expensive plan, so compare the whole bill.
How are carrier trade-in credits handled?
Carriers often pay large trade-in offers as monthly bill credits over 24 to 36 months, and the credits stop if you leave early. Enter only the credit you expect to receive in full; if you might switch carriers, use the phone’s cash trade-in value instead.
Does sales tax apply before or after the trade-in?
It depends on where you live. Many US states charge sales tax on the full price of the new phone even when you trade one in. Enter your tax rate under More options; if your price already includes VAT or GST, leave it at 0.
Is it worth replacing the battery instead of upgrading?
Often yes. A battery replacement usually costs far less than a year of a new phone’s depreciation. Enter it as the cost to keep your current phone going and compare the two monthly costs.
Related calculators
Trade-in, resale and financing figures are estimates; check the actual offer terms before you buy.