How Much Does an iPhone Cost?

Answering the question of how much an iPhone costs isn't as simple as looking up whatever Apple's latest listed iPhone price is. That's because the iPhone includes a monthly service fee, as well as different costs for buying the phone itself. So figuring out how much an iPhone costs requires some math.

Let's start with the basics: the cost of the iPhone. In the most recent version – the iPhone 4S – Apple sells three models, 16GB, 32GB, and 64GB. The 16GB iPhone is priced at US$199 with a two-year AT&T, Sprint, or Verizon contract (these figures are all U.S.-specific. Different countries have other carriers and other costs), the 32GB model costs $299 with the same contract, and the 64 GB model costs $399.

But the cost of the phone itself isn't quite as simple as that. Those are the prices if you're signing a new contract, but there are lot of other situations you may be in with your current cellphone contract. Some of those include:

If you're switching to a new cellphone company to get the iPhone, you'll get the $199/$299/$399 price.Make sure you don't have to pay your old cell provider an early termination fee, though, since those can run up to $350.

If you already use AT&T, Sprint, or Verizon, but don't yet have an iPhone, you've got some options. First, check to see if you're eligible for an upgrade. If you are, you'll get your iPhone at the prices listed above. If you're not upgrade eligible, you've got a choice: either wait until you are, switch to a new carrier (though, remember, this may include termination fees), or pay the early upgrade price (usually about $200 more than the discounted price).

If you want to buy the iPhone without being tied to the two-year contract--which will allow you to pay for your service month to month and switch to other compatible carriers whenever you want--the phone can be yours for $649, $749, or $849. These prices are so much higher than the others because they're not subsidized. Phone companies pay Apple the different between the actual price of the phone (which is the contract-free price) and what they charge new customers as a way to attract new business. But, if you're not going to sign a two-year contract with them, they aren't going to subsidize your phone. So, contract free means freedom, but it means a more expensive phone, too.

Once you've purchased your phone, you have to factor in the cost of phone and Internet service provided by AT&T.

IPhone plans can include a $20/month or $25-$30/month data fee. You can then choose from $39.99/month for phone service on the low end to $99.99/month on the high end.

You also have to factor in text messaging plans, which range from $5 for 250 texts/month to unlimited texts for $20. This is optional, though, especially now that iMessage offers free text messaging to all iOS devices.

Since the common AT&T, Sprint, and Verizon contract is two years, that's what I'll base the calculations on. At the cheapest (cheapest calling plan, lowest number of texts, and data), a two-year iPhone contract costs $1,439.76. At its most expensive, iPhone service from AT&T costs $2,639.76.

This calculation doesn't include add-ons that carry service fees like text messages (which can add $10 or more per month to your bill), tethering (which adds $20/month), or insurance.

Here’s the breakdown of the total iPhone price over a new or upgrade-eligible two-year AT&T, Sprint, or Verizon contract (not including overages, tax, or additional charges).

AT&T: $59.99/month
450 minute plan $39.99 +
300 MB data plan $20Sprint: $109.99/month
Unlimited calling $99.99 +
unlimited data $10 +
unlimited text messages $0

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