Contract, SIM-only, outright, refurbished or finance? The true cost of your next phone

The cheapest way to get a phone isn't always the one money sites recommend. "Buy outright and go SIM-only" used to be a safe rule. In November 2026, with the iPhone 17 at £899 from Apple and smaller networks and retailers competing hard on contracts, the cheapest contracts often beat it, while big networks' own deals are still the most expensive way to get the same phone.

This guide does the sums properly. It compares all five ways to get a phone over the same period, adds the price rises written into the contract, and shows you one number that settles most "contract or SIM-only?" questions in seconds: the implied phone price.

The short answer

What that looked like on 8 November 2026, over 24 months:

The full workings, with sellers, data allowances and price rises, are in the worked examples below. Contract totals are as listed on MoneySavingExpert's Cheap Mobile Finder (a secondary source) on that day.

Work out your own true cost

No calculator can know your circumstances better than you, so the calculator below starts empty: every price is one you enter, from the quotes in front of you. It costs every route over the same period, adds price rises in the months they apply, counts any balance you'd still owe at the end, and subtracts a resale value only if you give one. If you only want the answer for the examples on this page, skip to the worked examples.

True cost calculator

Enter the prices you have been quoted. Fill in only the routes you want to compare: a route without its main price is left out rather than counted as free. Nothing you type leaves your browser.

The five ways to get a phone in the UK

Every route below gets you the same handset and the same network. What changes is when you pay, how much of it is credit, and how easy it is to leave.

1. Handset contract (pay monthly with a phone)

You pay one monthly price, sometimes with an upfront fee, for the phone and your allowance of calls, texts and data, usually for 24 months. Ofcom's rules cap the minimum term of a mobile contract at 24 months, although a separate device plan for the phone can run longer: Vodafone's iPhone 17 device plan, for example, lasts 36 months.

There are two kinds, and the difference matters when you want to leave:

• Bundled: one price covers both. The phone's cost is hidden inside the monthly figure.
• Split: a separate device plan (a credit agreement for the phone) runs alongside an airtime plan. O2 has used this model for years; Sky Mobile, and Vodafone's EVO plans, are other examples. You can see exactly what the phone costs, and the airtime part can often be changed or ended separately.

Good for: people who can't or don't want to pay several hundred pounds upfront. Watch for: mid-contract price rises, which now have to be shown in pounds and pence before you sign, and bills that don't fall when the phone is paid off.

2. Buy the phone outright + SIM-only

You pay the full price of the phone once, from a manufacturer or retailer, and take a SIM-only plan for calls, texts and data. Because you own the phone, you can change SIM whenever your SIM plan allows; many are 30-day rolling.

Good for: anyone who can afford the upfront cost, finds the phone at a good price and wants the most freedom. Watch for: the opportunity cost of tying up cash, and making sure you buy an unlocked phone (all new phones from UK networks have been unlocked since December 2021; retailer stock almost always is).

3. Refurbished phone + SIM-only

The same as route 2, but with a professionally restored second-hand phone, usually one or two generations old, sold with a warranty and a cosmetic grade.

Good for: cutting the biggest cost (the handset) without losing much. Watch for: warranty length, battery health, how many years of software updates the model has left, and 4G calling support now that every UK network has switched off 3G.

4. Finance or a device plan + SIM-only

You spread the cost of the phone over 12 to 36 months with a credit agreement: a network device plan, retailer finance, a 0% purchase credit card, or buy now, pay later (BNPL). Since 15 July 2026, short interest-free BNPL agreements are regulated by the Financial Conduct Authority, which means lenders must be authorised and check affordability. BNPL agreements taken out before that date aren't covered.

Good for: keeping SIM-only freedom without paying upfront, especially at 0% APR. Watch for: interest if the rate isn't 0%, late-payment fees, the effect of missed payments on your credit file, and agreements that run longer than you'll keep the phone.

5. Pay as you go

You top up with credit or buy a monthly bundle with no contract and, usually, no credit check, using a phone you already own.

Good for: very light users, children's first phones, anyone who wants no credit agreement at all. Watch for: bundles that renew every 30 days rather than monthly, and out-of-bundle rates.

The five routes side by side

Three worked examples with prices checked on 8 November 2026

We priced every route for three common situations on 8 November 2026. The results don't match the usual advice that buying outright always wins, and that's the point of doing the sums. Where we couldn't confirm a price on the day, we say so instead of filling the gap.

How to read these tables. "24-month total" is every payment you'd make over two years, including upfront costs and the April 2027 and April 2028 price rises each seller states. Contract totals come from MoneySavingExpert's Cheap Mobile Finder (a secondary source), which adds the stated rises for you; confirm them on the seller's page before you buy. All routes leave you owning the phone at the end, so resale value is the same for each new-phone route and is covered later. Prices are a snapshot taken in the run-up to Black Friday and will change.

The trick that makes contracts comparable: the implied phone price

Take a contract's 24-month total and subtract what the same allowance would cost on the cheapest SIM-only plan over the same 24 months. What's left is what you are really paying for the phone. If that is less than the price to buy the phone outright, the contract is the cheaper way to get it.

Implied phone price = contract total − (24 × cheapest equivalent SIM-only monthly price)

Example 1: iPhone 17 (256GB), unlimited data

Apple sells the iPhone 17 (256GB) for £899, or £29.96 a month over 30 months at 0% APR through its finance partner. The cheapest comparable SIM-only plan we found was iD Mobile's unlimited data plan at £18 a month on a 1-month rolling plan, with no annual rises.

What it shows.

• The cheapest contracts beat buying from Apple by about £280 to £300 over two years, because the phone inside them is priced at roughly £600–£620, against £899 at Apple. The Fonehouse deal caps speeds at 100Mbps and adds a security add-on charge after a free trial unless you cancel it, so read the small print.
• Where you buy matters more than how you pay. The same phone on Vodafone's own split plan costs £900+ more than the cheapest contract, mostly because its unlimited airtime is far dearer than an MVNO's.
• 0% finance costs the same as buying outright. It changes when you pay, not how much.
• Refurbished could be cheaper still, if last year's model will do, but we couldn't read Back Market's prices on 8 November 2026, so we haven't priced a refurbished iPhone 16 here. Put any price you find into the calculator: with the same £18 SIM, a refurbished phone beats the cheapest contract whenever it costs less than about £617.
• Outright only wins if you can buy the phone for less than about £617. Check retailers' prices, not just Apple's, especially around Black Friday.

Example 2: mid-range Android, moderate data (Samsung Galaxy A57 5G, 256GB)

Samsung's recommended price for the Galaxy A57 (256GB) is £529. We found it for £329 on 8 November 2026 (lowest price on PriceSpy). The cheapest comparable SIM-only plans were around £7–£8 a month.

What it shows. Again, the cheapest contract wins: the phone inside it costs about £245, which is less than the lowest price we found to buy it. The bigger-data contracts are good value too: once you subtract a £12 100GB SIM-only plan, their implied phone price is only £271–£279. The Talkmobile contract lists no price rise, but the comparison site notes prices may change during the contract, so check the terms. The same pattern held for the Google Pixel 10a: an iD Mobile 25GB contract totalling £419.16 implies a phone price of about £227, against £399 at the Google Store during its offer to 1 December 2026 (usually £599).

Example 3: a first phone for a child, light data

Many parents don't want a 24-month contract in their name for a child's first phone, or want the freedom to cap or cancel at any time. Here the comparison is between flexibility and the lowest total.

What it shows. A contract on a mid-range Android is about £50–£70 cheaper over two years. A refurbished iPhone on a rolling SIM costs a little more but can be stopped any month, and an iPhone 15 should still get security updates for some time yet (see below). For a child who might lose or break the phone, many parents will find the flexibility worth the difference.

The pattern across all three

1. Compare the cheapest contract with the cheapest outright price, not with RRP. In November 2026 the best contracts from smaller networks and retailers priced the phone well below the manufacturer's price.
2. Big networks' own deals cost the most, because their airtime is dearer and their annual rises are larger.
3. Refurbished + SIM-only is often the cheapest route whenever a previous model is acceptable; check the price against the implied phone price of the cheapest contract.
4. The SIM-only market sets the benchmark. If unlimited SIM-only prices fall further, outright buying gets more attractive; if phone prices rise, contracts look better.

Prices checked on 8 November 2026 from Apple UK, the Google Store, MoneySavingExpert's Cheap Mobile Finder (secondary source), iD Mobile, Talkmobile, Vodafone, refurbed.co.uk, Samsung UK and PriceSpy. Back Market's prices couldn't be read. Several were pre-Black Friday promotions and will change.

The costs that contract quotes don't show

The monthly price on a deal page is the start of the sum, not the end. Five things move the real number, and only one of them is in the headline.

1. Mid-contract price rises

Since 17 January 2025, Ofcom has banned rises linked to inflation or set as a percentage in new contracts. Providers can still put up your price during your contract, but they must tell you before you sign exactly how much, in pounds and pence, and when. On the big networks that's currently £1.80 to £2.50 a month on most plans, and £4 on EE handset plans, applied each spring (31 March at EE, April at the others).

Because the rise is now a fixed number, you can work out exactly what it adds. The formula is simple:

Total = upfront costs + the monthly price in force in each month, added up over every month

Worked example (illustrative figures). A 24-month deal at £30 a month, starting in October, with a £2.50 rise every April:

The headline "£30 a month" suggests £720. The real figure is £780: £60, or about 8%, more. Start the same deal in March instead and the first rise arrives after just one month, so you pay £805 (1 × £30 + 12 × £32.50 + 11 × £35): £25 more than the October start. The start month matters. Some providers phrase the timing differently (for example, skipping the first April if you joined shortly before it), so read the price-rise line on the deal page or in the contract summary, which they now have to give you before you sign.

The simplest way to avoid this cost altogether is a plan with no mid-contract rises. Several smaller brands promise them, and 30-day rolling plans let you leave if the price changes. See which networks promise no price rises.

2. Staying on after the contract ends

With a handset contract, part of every monthly payment is paying off the phone. When the minimum term ends, you've paid for it. If your bill doesn't fall, every extra month is pure overpayment.

This isn't a theoretical risk. In 2019 Ofcom estimated that out-of-contract customers on bundled deals were overpaying about £182 million a year in total, and in 2020 Which? found that 36% of customers whose contracts had recently ended were still overpaying. Ofcom later estimated the figure had fallen to about £83 million a year by 2020. Rules and network commitments have improved since, but networks still treat out-of-contract customers differently: see what happens when your contract ends.

Illustration. If your contract is £45 a month and an equivalent SIM-only plan costs £15, each month you stay costs £30. Six months of not getting round to it is £180, which is more than many SIM-only plans cost in a year.

Your provider must send you an end-of-contract notification 10 to 40 days before your term ends, with its best deals, including at least one SIM-only option if you have a bundled phone. Treat that message as a deadline, not junk mail, and see how to switch in one working day.

3. Upfront and one-off fees

Add any upfront cost to the total, however the deal page presents it. A deal at £20 a month with £200 upfront costs the same over 24 months as one at about £28.33 a month with nothing upfront. Also check delivery charges, eSIM or SIM-swap fees and any "activation" charges.

4. Insurance and extras

Insurance sold with a phone adds a monthly cost that can last as long as the contract. Before buying it, check whether your home contents insurance or a packaged bank account already covers your phone. Add-ons such as streaming subscriptions only count as savings if you would have paid for them anyway.

5. Cashback and rewards that never arrive

Automatic discounts are worth their full value. Cashback you have to claim (often by sending bills in specific months) is worth less: count it only if you are sure you'll claim it, and note the claim dates the day you sign.

Quick check before you compare deals

• Multiply the monthly price by the number of months, then add every price rise for the months it applies.
• Add every upfront and one-off fee.
• Add insurance if you'll take it.
• Count automatic discounts in full; claimable cashback only if you'll claim it.
• Set a reminder for the month your contract ends.

How long should you keep a phone?

The longer you keep a phone, the cheaper each year of it becomes, until it stops getting security updates. Two numbers decide the sweet spot: how many years of updates are left, and what the phone is worth when you sell it.

Software support by manufacturer

In practice, iPhones have often been supported for longer than five years, but plan on the minimum. For a refurbished phone, count from the model's launch, not from when you buy it: an iPhone 15 (launched September 2023) is covered by that minimum until at least autumn 2028.

What phones are worth when you sell them

Trade-in prices for unlocked 128GB phones, 8 November 2026:

Two things push the price down: network-locked phones fetch about 10% less at Envirofone, and visible wear moves you down a grade. A case and a screen protector pay for themselves at resale.

What a year of ownership really costs

Using today's values for older models as a guide to what an iPhone 17 might fetch later (an estimate, not a forecast):

The per-year cost keeps falling slowly after year two, while the phone is still supported. That's why the cheapest overall pattern is usually: buy (or contract) well, keep for three years or more, then sell or hand down. You can test your own keep period in the calculator.

Trade-in prices checked 8 November 2026. Resale estimates use current prices for 2- and 3-year-old models; a future price for any model can't be known in advance.

When a contract is the better deal (more often than you'd think)

Most money sites still say a contract is the expensive way to get a phone. Our November 2026 prices say that depends entirely on which contract. These are the situations where a contract comes out ahead:

• The cheapest deals from smaller networks and retailers. In our examples, the best contracts priced the phone roughly £280–£370 below the manufacturer's usual price once the airtime was valued at SIM-only rates.
• 0% credit you'd otherwise pay for. If the alternative is a credit card at 20%+ APR, a contract or a 0% device plan is cheaper borrowing.
• Perks you'd buy anyway. If a contract includes a subscription you already pay for, count its real value to you, not its list price.
• Cash flow comes first. A contract spreads the cost with little or nothing upfront. As long as you know the total, that's a legitimate trade-off.

And where a contract usually loses:

• Big networks' own deals, where airtime costs far more than SIM-only and annual rises are larger.
• Staying on after the term ends without the bill dropping.
• When you can buy the phone well below RRP, for example in a sale, or when a previous model will do and refurbished is an option.

Buying refurbished safely

A refurbished phone has been used, inspected, repaired where needed, cleaned and resold. Bought well, it's the single biggest saving on this page. Bought badly, it's someone else's problem in a new box.

What the grades mean

There is no single UK standard, so each seller defines its own. Typically:

Grade describes looks, not function. Every grade from a reputable seller should work fully.

Six checks before you buy

1. Warranty of at least 12 months. Your statutory rights still apply to second-hand goods bought from a business, but a clear warranty makes claims simple.
2. Battery health. Look for a stated minimum (many sellers guarantee 80% or more, some 85% or more). A worn battery is the most common disappointment.
3. Software support left. Check how many years of security updates the model has remaining (see How long should you keep a phone?). A bargain that stops getting updates in a year is not a bargain.
4. 4G calling (VoLTE) and Wi-Fi calling. Every UK network has switched off 3G, so a phone that can't make calls over 4G may only make calls where 2G is still available, and 2G will be switched off by 2033 at the latest, with some networks starting from 2029.
5. Not blacklisted or finance-locked. Reputable sellers check the IMEI against lost, stolen and unpaid-finance databases. On marketplaces with private sellers, ask for the IMEI and check it yourself.
6. Unlocked and returns. Make sure it's unlocked and that you can return it for any reason within a reasonable window.

Which route suits you?

Find the line that describes you best. It shows the route that usually works out cheapest, and the check that could change the answer.

Before you sign: a 2-minute checklist

• I know the total cost over the full term, not just the monthly price.
• I've added every price rise in pounds and pence, and I know which month it starts.
• I know what my bill becomes after the minimum term.
• I've checked coverage at home and work on Ofcom's Map Your Mobile.
• I know whether the phone and airtime are split, and what happens to each if I leave early.
• If it's finance or BNPL, I know the APR, the term and the late-payment fees.
• If it's refurbished, I've checked the warranty, battery health and update support.
• I've set a calendar reminder a month before the contract ends.

Frequently asked questions

Is SIM-only cheaper than a contract?

On the airtime alone, yes: a SIM-only plan doesn't include a phone. The fair comparison is SIM-only plus what you pay for the handset, against the contract. In November 2026 the cheapest contracts from smaller networks and retailers often beat buying a new phone at the manufacturer's price plus SIM-only, while big networks' own contracts rarely did. Work out the implied phone price to see which side a deal falls.

What happens to my bill when my phone contract ends?

It depends on your provider. On split plans the device payments stop once the phone is paid off; on bundled plans we found no current official statement that bills drop automatically, so ask. Your provider must contact you 10 to 40 days before the end with its best deals. Moving to SIM-only, or switching network, is usually the cheapest option.

Can I buy a phone on finance and get a separate SIM-only deal?

Yes. Manufacturers, retailers and some networks offer finance on the phone alone, and the SIM can come from any provider. If you leave the SIM plan, the finance agreement continues until the phone is paid for.

Does a phone contract affect my credit score?

Applying usually means a credit check, which shows on your credit file, and a contract or device plan is reported as a credit agreement. Paying on time can help your history; missed payments harm it. Several applications in a short period can make lenders cautious.

Is it better to buy an iPhone from Apple or on contract?

Not necessarily. On 8 November 2026 the cheapest unlimited iPhone 17 contracts we found cost about £280 to £300 less over two years than buying from Apple at £899 with an unlimited SIM-only plan. Buying outright wins if you can find the phone for less than about £617, or if you'd rather not take on a credit agreement. Resale value is the same either way, because you own the phone at the end of both.

Are refurbished phones safe to buy?

From an established seller, yes. Look for a warranty of at least 12 months, a clear cosmetic grade, a stated minimum battery health and an easy returns process. Check the model still gets security updates and supports 4G calling.

Is buy now, pay later a good way to buy a phone?

It can be, if it's interest-free and you're certain you can meet every instalment. For agreements taken out since 15 July 2026, BNPL lenders must be authorised by the FCA and check affordability, which adds protection. Missed payments can still mean fees and damage to your credit file.

Do I need a new phone for 5G?

Only if you want 5G speeds. A 4G phone works on every UK network, and 4G calling (VoLTE) matters more now that 3G has been switched off. Check any older or refurbished phone supports it.

How we calculate

Method. For each route we add every payment you would make over the period: upfront costs, monthly payments, and each mid-contract price rise in pounds and pence for the months it applies. Contract totals in the worked examples are as listed on MoneySavingExpert's Cheap Mobile Finder, which includes the rises each seller states. To compare a contract with buying outright, we subtract 24 months of the cheapest SIM-only plan with a similar allowance and no annual rises, which gives the implied phone price. Trade-in values are Envirofone quotes for unlocked 128GB phones in the stated condition. We don't include insurance or the interest you could earn on savings unless we say so.

The calculator uses the same method on the prices you enter. It treats every route over one period. If an agreement runs past the end of the period, the amount still owed (the remaining contract payments, or the remaining balance on a finance agreement) is added to that route rather than left out. A resale value is subtracted only if you enter one, and cashback you have to claim is shown separately and never counted as certain. A plan that renews every 30 days is charged on the actual renewal dates, which adds about one payment a year compared with a monthly plan. Full details are on our methodology page.

What we don't do. MobiSaver has no affiliate links, advertising or paid placements, so nothing on this page earns us money.

Limits. Prices change daily, and several in this guide were promotional. Retailer deals marked "no rise listed" are as shown on the comparison site; confirm on the seller's page before you buy. This guide is general information, not financial advice; if you're considering credit, check the APR and your ability to repay.

Sources

All checked on 8 November 2026.

• Apple UK: iPhone 17
• Google Store: Pixel 11 and Pixel 10a
• Samsung UK newsroom: Galaxy A57 5G and Galaxy S26 series
• MoneySavingExpert Cheap Mobile Finder (secondary source): iPhone 17 contracts, Galaxy A57 contracts, Pixel 10a contracts
• Vodafone: iPhone 17 pay monthly
• iD Mobile: SIM-only deals and price increases
• Talkmobile: SIM-only deals
• refurbed.co.uk: iPhone 15
• PriceSpy: Galaxy A57
• Envirofone: sell iPhone 16, iPhone 15, Galaxy S24
• MacRumors: Apple's five-year minimum for iPhone security updates (secondary source)
• Ofcom: mid-contract price rises rules
• Ofcom: General Conditions of Entitlement (unofficial consolidated version)
• Ofcom: locked handsets ban and 3G switch-off
• Ofcom: 2019 statement on mobile handsets and helping customers get better deals (2021); Which? (August 2020)
• FCA: Buy Now Pay Later

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