Is it cheaper to buy a phone outright or on a plan?
For most mid-range and older phones, buying outright and adding a SIM-only plan costs less over two years than a phone plan. For the newest flagships, the two can come out about even.
Why the answer changes by phone
A plan bundles the handset repayments into the monthly fee, so you pay for the phone either way. Choice has reported that mid-priced and previous-generation phones tend to be cheaper bought outright with your own SIM, while a plan for the newest premium Apple or Samsung phone is normally no worse (Choice). A SIM-only plan also has no lock-in, so you can switch provider whenever you like (Compare the Market).
The lock-in is the real cost
A plan commits you for the full term, even if you lose or damage the phone. In Canstar's 2026 survey of more than 1,100 Australians, 69% bought their phone outright and two-thirds said cost-of-living pressure affected the purchase (Canstar).
Do the sum before you sign
- Plan: monthly fee × 24, plus any upfront cost.
- Outright: phone price + (SIM-only monthly fee × 24).
- If the totals are close, take the option with no lock-in.
Example (the plan price is made up, so check current offers): a Galaxy A37 at $497 plus a $30-a-month SIM-only plan comes to $1,217 over 24 months.
Compare SIM-only deals
The second sum needs real monthly prices. myprepaid.com.au is our own comparison of Australian prepaid and SIM-only deals. It shows prices checked daily on each provider's own site, and you can filter by network, budget and data. We may earn a fee when you click through to a provider, and that doesn't change the order the deals are shown in.
Phones to look at if you're buying outright
Prices on our site on 7 October 2026, in AUD. They change, so check the product page.
- Samsung Galaxy A37 5G: from $497
- Redmi Note 17 Pro 5G: from $563
- Samsung Galaxy A57 5G: from $573
- Google Pixel 10a: from $701
- Samsung Galaxy S25: from $981
Compare our price with any other retailer's for the same model and storage. If ours is lower, buy outright from us and keep your freedom to pick the cheapest SIM-only plan.
