What’s the real cost of owning a smartphone in the UK? A 24-month reality check

January is usually when people promise themselves they’ll be better with money. New year, new budget, new phone contract. And that’s exactly where a lot of people accidentally mess it up.

On paper, owning a smartphone sounds simple. You pay a monthly bill, you get a phone, job done. In reality, over two years, it adds up to a number most people never actually sit down and calculate. So, let’s do that now.

A typical UK phone contract runs for 24 months. You usually pay a small upfront fee, then a monthly amount that bundles the phone and your data plan together. Right now, that monthly cost often sits somewhere between £35 and £60, depending on the phone and the network.

Let’s be conservative and say £45 a month. Over 24 months, that’s £1,080. Add an upfront cost of £50 to £100, and you’re already looking at around £1,150 to £1,180. That’s before price rises. And yes, price rises matter.

Most UK networks increase contract prices every April, usually linked to inflation plus a percentage on top. Even a modest increase of a few pounds a month can add another £40 to £80 over the remaining contract period. Suddenly your £45 deal isn’t £45 anymore, and there’s nothing you can do about it without paying to leave.

Then, there’s insurance.

A lot of people add it automatically, because dropping a £1,000 phone hurts. Insurance typically costs £10 to £15 a month. Over two years, that’s another £240 to £360. Some policies have excess fees, so you still pay if something goes wrong, which is always a fun surprise. Accessories sneak in too. Cases, screen protectors, replacement cables when the original mysteriously stops working. It doesn’t feel like much at the time, but it still counts.

What does that mean in real terms? For a lot of people, owning a smartphone over two years costs somewhere between £1,400 and £1,600. Sometimes more. And that’s for a device that, by the end of the contract, feels old, slower and suspiciously less impressive than the shiny thing you’re being advertised next. Now compare that to buying a phone outright.

If you buy a SIM-free phone and pair it with a rolling monthly SIM, the maths changes. A decent SIM-only plan in the UK sits around £8 to £15 a month. Over 24 months, that’s £192 to £360. Even if you spend £500 to £700 on the phone itself, your total cost over two years often lands hundreds of pounds lower than a contract. You also get flexibility. If coverage is rubbish where you live, you switch networks. If prices go up, you leave. No exit fees, no awkward phone calls.

And here’s the bit people forget. When a contract ends, you don’t just stop paying. A lot of people keep paying the same monthly amount for months, sometimes years, without realising they’ve already paid off the phone. At that point, you’re effectively renting something you already own.

Phones are expensive but contracts often hide just how expensive they really are. If you’re going into the new year trying to be a bit smarter with money, the best move isn’t necessarily buying a cheaper phone. It’s understanding what you’re paying, over time, and choosing the option that doesn’t quietly drain your bank account while pretending it’s convenient.

Also, we don’t necessarily like to brag, but we do have quite a few nice deals in our shop. Take a look when you’re ready to go SIM-free.