Ready for a new mobile plan, but not sure whether to go for a standalone Sim Only plan or a plan that includes a phone? Both options have pros and cons, and which one works out cheaper mainly depends on whether you already have a good phone and how you'd prefer to pay.

In this article we lay out the differences so you can make an informed choice.

The key difference in short

With Sim Only, you only pay for your data allowance, calling minutes and texts. With a plan that includes a phone, the price of a device is built into your monthly fee, usually spread over 12 or 24 months. In that case you're effectively paying off your phone in instalments, combined with your bundle.

Cost comparison: what do you actually pay?

Sim Only + buying a phone separately

Say you buy a €600 phone outright and take out a Sim Only plan at €15 a month. Over 24 months that's €600 (phone) plus €360 (plan) = €960 in total.

A plan that includes the phone

The same phone through a plan that includes a device often costs around €40 to €45 a month, so €960 to €1,080 in total over 24 months. Comparable to, or slightly more expensive than, the Sim Only route, the difference being that you spread the amount monthly instead of paying a large sum upfront.

These figures are illustrative: when making an actual choice, always weigh the current device price and plan price against each other, since the ratio differs per phone and per provider.

Freedom and flexibility

With Sim Only you're more flexible: you can switch to a different provider more easily as soon as there's a better deal, without an outstanding device balance in the way. With a plan that includes a phone, you're tied to the contract term, and cancelling early usually means paying the remaining device balance in one go.

When is Sim Only cheaper?

  • You already have a phone that works well.
  • You want to stay flexible and be able to switch easily.
  • You have the budget to pay for a phone outright (or deliberately buy a cheaper one).
  • You don't want to be tied to a long contract term.

When does a plan with a phone make more sense?

  • You need a new phone but don't have the budget to pay for it all at once.
  • You like having everything in one fixed monthly fee.
  • You'd rather not shop around for the best phone price yourself.

What happens if your phone breaks or you want to switch?

With Sim Only, your phone and your plan are completely decoupled: if your phone breaks, you buy a new one without it affecting your plan. With a plan that includes a phone, the remaining device payments simply continue, even if you need a new phone.

Want to switch to Sim Only? Read also: What to look for when choosing Sim Only

How do you decide what suits you?

Ask yourself three things: do you already have a working phone, can you pay for a new one outright, and how important is flexibility to you? If the answer to all three leans 'yes', Sim Only is almost always the cheaper and more flexible choice.

Not sure yet exactly what Sim Only involves? Read also: What is a Sim Only plan? A plain-language explanation

Conclusion: Sim Only is cheaper more often, but not always

Sim Only is the cheaper and more flexible choice for most people, especially if you already have a working phone. Need a new device and don't have the budget to pay for it upfront? Then a plan that includes a phone can work out just as affordable — though you'll usually pay a bit more for the convenience of spreading the cost.

Still not sure? Give Welli 2 minutes and you'll get advice that fits your situation and budget.