SIM free vs contract: which is cheaper over 24 months?

it depends on the phone and the deal, and neither side always wins. Buying SIM free and adding a SIM-only plan is usually cheaper when you keep the phone past the contract term and shop around. A contract can be cheaper in headline cost when a network is discounting a handset. The only way to know is to add up the 24 months for the same phone and the same data.

Why the monthly price is misleading

A contract bill has two parts mixed together: you are paying off the phone and you are paying for airtime (calls, texts and data). When the contract ends, the monthly bill usually stays the same unless you move to a cheaper plan, so you keep paying for a phone you have already paid for. A SIM-free phone separates the two, so you can see what each one costs and change either whenever you like.

The sum, step by step

1. Work out the contract total: monthly price multiplied by 24, plus anything upfront.
2. Work out the SIM-free total: the price of the same phone and storage, plus a SIM-only plan with the same data multiplied by 24.
3. Compare the two totals. The lower one is cheaper.

Two worked examples

These use round numbers to show the method. They are not NexCell or network prices, so replace them with the deals you are comparing.

Example B is the case people forget. Contract discounts do exist, especially on older models, and in those cases the contract genuinely costs less over 24 months.

What the total does not show

• Flexibility. A SIM-only plan can be a rolling 30-day plan, so you can move networks when a better deal appears. A contract locks you in for the term.
• What you do after month 24. If you keep the phone for another two years, the SIM-free route has no repayment tail at all.
• Credit. A contract is a credit agreement and involves a credit check. Buying a phone outright does not.
• Early exit. Leaving a contract early means paying off the remainder. A SIM-free phone has no such cost.

Which is right for you?

Buy SIM free if you keep phones for three or more years, like to switch networks for a better price, or do not want a credit agreement.

Take a contract if the total over 24 months is lower for the phone you want and you are happy to stay with the network. Check the sums first.

Another option is paying in full for a bigger discount. Our guide to paying in full or monthly covers how that works on NexCell.

Common questions

Is a SIM-free phone the same as an unlocked phone?

For phones sold new in the UK, yes in practice. See our guide on what SIM free means.

Can I use any network with a SIM-free phone?

Yes. Any UK network that supports the phone's frequencies will work, and all current iPhones and Galaxy phones support the main UK networks.

What is the cheapest way to get the newest phone?

Price the contract and the SIM-free route for the same phone and data, using the three steps above. The cheaper total wins.