Trade-in math: when a "free phone" costs more than buying unlocked + a $25 plan

"Free phone" carrier deals pay you in monthly bill credits over 24–36 months — and they require a premium plan for the whole term. The phone isn't the cost. The plan is. Here's the comparison using prices from our own catalog and comparison table.

The 36-month totals

• Option A — "free" phone on premium postpaid: an $830 phone at $0/mo with trade-in credits, on a premium line at $80/mo with AutoPay (the legacy-equivalent price our table shows for Verizon Plus). Plan cost over 36 months: $2,880. Phone: $0, as long as you stay all 36 months.
• Option B — buy the same phone unlocked + a $25 plan: $830 for the phone, plus Visible at $25/mo on the same Verizon towers. Plan cost over 36 months: $900. Total: $1,730.
• Difference: about $1,150 — paid not for the phone, but for the privilege of the credits.

The one number most people miss

The credits stop the month you leave, and the phone's remaining balance comes due immediately. So the real price of the "free" phone is (premium plan − switch plan) × months you'll actually stay. If you'd switch plans in a year anyway, the deal math collapses entirely. Conversely, the deal can win if you were truly going to stay on that premium plan for the full term regardless — some households are, and for them the credits are genuinely free money.

A middle path

Want a new phone and a cheap plan? Buy unlocked during manufacturer sales, or take a switch promo that doesn't chain you to a premium tier — our upgrade deals section lists current switch + trade offers, including BYOD gift cards of $200–$300 for people keeping a phone under three years old. Then pair it with a plan from the plan finder.