Effective monthly cost
The Effective monthly cost helps you to compare the total amount you'll pay for different deals, including those with an upfront cost, cashback, or bill credits, helping you find the best value deal.
The Effective monthly cost is NOT the amount that will be taken from your bank account by direct debit every month (this is the “Monthly cost”).
Included in the Effective monthly cost figure is:
- The total line rental cost over the life of the contract (Monthly cost multiplied by the length of the contract in months)
- Any upfront handset cost (if applicable)
- Any cashback promotions or bill credits that will be received through the duration of the contract (if applicable)
For example. A contract has an upfront handset cost of £50. The contract is 24 months long, and is £25 per month. This means the total line rental is 24 months x £25, which is £600. If there was £100 cashback, this would be taken into account too, by subtracting it from the total line rental cost. £600-£100 = £500. Add in the handset cost £50+£500 =£550 to give the total contract cost of £550. To get the Effective monthly cost, divide this by the contract length: £550/24 months, to give £22.92.
*Networks may increase Monthly price in line with Retail Price Index (RPI).