SIM only or handset contract: which costs less?
The arithmetic behind bundled handsets, and when a contract genuinely is the cheaper route.
24 July 2026 · 6 min read
A handset contract is a phone loan bundled with airtime. Splitting them makes the cost obvious.
Add up the total contract cost over its full term, subtract the airtime cost of an equivalent SIM only plan, and you have the real price of the handset.
Contracts win when the effective handset price is below the cash price and you would have bought that phone anyway.
SIM only wins for anyone keeping a phone longer than two years, which is now most people.
Editorial note
This article is editorial guidance. Where a result depends heavily on location we say so rather than reporting a single number as universal.
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