What a smartphone really costs

A smartphone's price is the number everyone looks at, but it is only part of the bill. Every month you pay for the plan, now and then for a case, a screen protector, a repair or insurance, and at the end the phone can be resold. This calculator puts it all together and returns the cost per year and per day, the total cost over the phone's life and how much of that cost really depends on the phone.

It works in any currency and for any model, new or refurbished.

How the calculation works

You enter the phone's price, the value you expect to resell it for, how many years you will use it, the monthly cost of the plan and extra costs per year.

• Annual depreciation: (price − resale) divided by the years of use.
• Annual cost: depreciation + 12 months of plan + extras.
• Cost per day: the annual cost divided by 365.
• Phone share: the part of the annual cost due to the device.

The verdict is based on the phone share: a percentage that does not depend on the currency and shows where the strongest lever is, on the device or on recurring costs.

The plan can be worth a second phone

A monthly tariff looks small, but multiplied by the years of use it often ends up worth as much as the phone itself. The table compares three years of plan with an 800 phone.

With a plan at 20 a month, three years cost almost a second phone; from 40 up, the plan exceeds the device. Comparing tariffs against your real data and minutes use is often the easiest saving.

Keeping it longer lowers the annual cost

Depreciation is divided by the years of use. Even though resale value falls over time, keeping the phone longer usually lowers the annual cost. The table uses an 800 phone, a 20-a-month plan, 60 a year of extras and a resale value that falls year after year (example values).

The gain is large in the first years and smaller afterwards: going from one to two years saves 100 a year, from four to five only 22. The practical limit becomes the length of security updates and battery life.

Resale value

What you get back by reselling the phone was never really spent. On an 800 phone kept for three years, every extra 100 of resale lowers the annual cost by about 33.

Keeping the phone in good condition, with a case and screen protector, and keeping the box and accessories helps resale. High-end models and some brands tend to hold their value better on the second-hand market.

Extra costs

Cases, screen protectors, chargers, screen repairs, battery replacement, insurance or extended warranty: small one by one, added up over a year they can be worth a few months of plan. Enter them as an annual average; a one-off repair should be divided by the years of use.

The four bands of the verdict

• Phone below 25%: recurring costs run the bill, and the lever is the tariff.
• 25% to 50%: recurring costs weigh more than the phone.
• 50% to 75%: the phone weighs more, and the lever is lifespan.
• Above 75%: the phone runs the bill, through price, lifespan and resale.

New, refurbished or on instalments

A refurbished phone costs less and depreciates more slowly, but may have less battery life and fewer years of updates left. Buying the phone on instalments within a plan does not change the calculation: separate the device instalment from the service cost, entering the phone's total price as the purchase price and only the service as the monthly plan, to see what you really pay for each part.

Limits of the calculator

The model uses straight-line depreciation, a constant plan and average extras. It does not consider tariff increases, instalment interest, the value of subscription apps and services or the cost of time. Resale value is an estimate: check second-hand prices for your model for a more precise figure.

Frequently asked questions

How much does a smartphone cost per year?

The phone's depreciation, that is price minus resale divided by the years, plus twelve months of plan and extras. An 800 phone resold at 200 after three years, with a 20-a-month plan and 60 of extras, costs 500 a year.

Does the phone or the plan weigh more?

It depends. With cheap plans and expensive phones the device weighs more; with a plan of 20 a month or more, over three years the plan is often worth as much as the phone. The calculator shows the share in your case.

Is it worth keeping the phone longer?

Usually yes: depreciation is spread over more years, even as resale value falls. The gain is large in the first years and smaller later.

How do I estimate the resale value?

Look at second-hand prices for your model at a few years old. High-end phones in good condition hold their value better.

What counts as extra costs?

Cases, screen protectors, chargers, repairs, battery replacement, insurance and extended warranties, as an annual average.

How do I enter a phone bought on instalments?

Enter the phone's total price as the purchase price and only the service cost as the monthly plan, separating the device instalment from the tariff.

Is a refurbished phone worth it?

Often yes: it costs less and depreciates more slowly. Check, however, the remaining battery life and years of security updates.

What does the phone share mean?

It is the part of the annual cost due to the device. Below 25% the strongest levers are tariff and extras; above 50% they are the phone's price, lifespan and resale.

How much does a smartphone cost per day?

The annual cost divided by 365. In the 500-a-year example that is about 1.37 a day.

Does the calculator include instalment interest?

No. If the instalments carry interest, add it to the phone's price for a more precise comparison.

What about apps and subscriptions?

They are not included: streaming, cloud and paid apps are separate services. If you want to count them, add them to the annual extras.

Does it work in any currency?

Yes. Enter all amounts in the same currency; the verdict is based on a percentage that does not depend on the currency.