Proper Calculation of Having a phone on contract vs outright
So I know there's been discussions where people prefer to sign up for a contract vs buying a phone outright, and that it works out to be cheaper either way. That being said, what is the exact calculation to use? I.e. to know if its cost effective in getting a phone on contract or outright?
Edit: This is a corporate plan. Plan is same regardless of contract or no contract. Contract term is 36 months vs 24 months.
Example - I shall use the iPhone SE (5SE) 16GB as an example.
a) Contract option
Plan - $40 voice + $10 data (unlimited with 10GB fair usage policy - flex rate). Max $56.50 taxes in a month
Contract term - 36 months
Contract price - $99 + taxes
Would the calculation be: $111.87 (for phone $99 + taxes) + $2034 ($56.50 x 36 months) = $2145.87 total cost of phone + monthly plan for length of 36 month term?
b) Outright option:
Plan - $40 voice + $10 data (unlimited with 10GB fair usage policy - flex rate). Max $56.50 taxes in a month
Outright price - $579 + taxes
Usage of phone non contract - Say lets say we use the phone for 36 months - Or does this not apply when calculating it?
Would the calculation be: $654.27 (for phone $579 + taxes) + $2034 ($56.50 x 36 months) = $2688.27
Therefore its cheaper to get the phone on contract?
Pros of no contract - factory unlocked iPhone - can use when traveling. Can leave Rogers if needed without any cancellation fees, etc.
Thanks
Edit: This is a corporate plan. Plan is same regardless of contract or no contract. Contract term is 36 months vs 24 months.
Example - I shall use the iPhone SE (5SE) 16GB as an example.
a) Contract option
Plan - $40 voice + $10 data (unlimited with 10GB fair usage policy - flex rate). Max $56.50 taxes in a month
Contract term - 36 months
Contract price - $99 + taxes
Would the calculation be: $111.87 (for phone $99 + taxes) + $2034 ($56.50 x 36 months) = $2145.87 total cost of phone + monthly plan for length of 36 month term?
b) Outright option:
Plan - $40 voice + $10 data (unlimited with 10GB fair usage policy - flex rate). Max $56.50 taxes in a month
Outright price - $579 + taxes
Usage of phone non contract - Say lets say we use the phone for 36 months - Or does this not apply when calculating it?
Would the calculation be: $654.27 (for phone $579 + taxes) + $2034 ($56.50 x 36 months) = $2688.27
Therefore its cheaper to get the phone on contract?
Pros of no contract - factory unlocked iPhone - can use when traveling. Can leave Rogers if needed without any cancellation fees, etc.
Thanks
Blanka