How much does upgrading your phone every year actually cost you?
The average iPhone costs $999. Upgrading every year costs $8,991 over 9 years after trade-in credits. Upgrading every 3 years costs $2,997 — saving $5,994. If that $666 annual savings was invested at 7% return over 20 years it would grow to $32,000. The average American upgrades their phone every 2.7 years.
Smartphone upgrade costs are calculated by comparing the actual out-of-pocket cost over time for different upgrade cycles after accounting for trade-in value. This calculator shows the real annual cost of your current upgrade habit and compares it to less frequent upgrade cycles and the investment alternative.
If you upgraded every 3 years instead of every year and invested the savings:
Most people cannot notice the difference between a 1-year-old and 3-year-old phone in daily use.
Surprised by this number? Share it with friends and family