Should you finance your iPhone? Here’s how much you’ll pay each month

iPhone 14 Plus
(Image credit: Future)

Apple just unveiled four new iPhone 14 models, all offering attractive features, but also carrying hefty price tags. (Fortunately, the prices didn’t increase as rumored). However, the least expensive model — the iPhone 14 — starts at $799, while the iPhone 14 Pro Max will set you back at least $1,099.

Fortunately, there are plenty of ways to pay for your new phone without having to have all that cash up-front. If you’re dying for Apple's newest models, but can’t justify shelling out almost $1,000 at once, financing options are available that can help you get the phone of your dreams.

Apple also gives you the opportunity to finance other products they sell, including iPads, Apple Watches, and Macs. You’ll be able to finance your device through Apple Card, the iPhone upgrade program, or your phone carrier. Keep reading to find out details of each and determine which is the best option for you.

Apple Card

One of the best ways to finance your new iPhone is with the Apple Card. One of the benefits is that you can earn 3% cash back on purchases made with Apple, a great way to easily rack up extra cash rewards when getting that new phone. Plus, you’ll be able to avoid interest rates on your purchase for 24 months, giving you plenty of breathing room to avoid an expensive APR. It’s a great option for avid Apple shoppers ready to spend some cash, while still earning some back. Oh, and you’ll earn 2% on all other purchases made with Apple Pay. 

If Apple Pay’s not your go-to, you can always open a card with a rewards rate more tailored to your spending that also features a 0% introductory APR period. If your credit score is low, here are five tips to improve your credit score.

Apple iPhone Upgrade Program

Another way to finance your new iPhone is with the Apple iPhone Upgrade Program. If having the latest version of the iPhone is important to you, then you should consider financing this way. The cost of the phone will be broken up into 24 monthly installments, interest free. Once you’ve made at least 12 payments, you’ll then be eligible to trade in your phone and get a brand new one, restarting your 24-month loan. It’s an easy way to stay up to date with Apple’s newest products without having to buy each in full. 

iPhone Payments Plan

Even without an Apple card, you’ll still be able to pay in monthly installments for 0% APR. You can do this through Apple’s iPhone Payment plan, a partnership with Citizen One bank. With this program, you’ll be able to split the cost of your new iPhone into 24 interest free payments, allowing you to pay off the balance overtime, without having to open an Apple Card.

Installment Plans Through Carrier

Another way to finance your iphone is by taking advantage of an installment plan offered by your phone’s carrier. Both AT&T and Verizon offer an interest free 36-month installment plan, and T-mobile offers a 24 month device payment plan.These programs are convenient because you’ll pay for both your device and rate plan on the same bill. Plus, most carriers offer additional deals as well. Right now AT&T and T-moble are offering up to $1,000 credit after trade-in on a purchase of an iPhone 14 or iPhone 14 Pro, for example. Verizon is also offering up to $800 after trade in. 

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Row 0 - Cell 0 iPhone 14 (128GB)iPhone 14 Plus (128GB)iPhone 14 Pro (128GB)iPhone 14 Pro Max (128GB)
Apple Card Installments $33.29/mo for 24 months $37.45/mo for 24 months $41.62/mo for 24 months $47.79/mo for 24 months
Apple iPhone Plan $33.29/mo for 24 months $37.45/mo for 24 months $41.62/mo for 24 months $47.79/mo for 24 months
AT&T Installment Plan $22.20/mo for 36 months $24.98/mo for 36 months $27.75/mo for 36 months $30.53/mo for 36 months
T-Mobile Equipment Installment Program $33.30/mo for 24 months $37.46/mo for 24 months $41.63/mo for 24 months $45.80/mo for 24 months
Verizon Device Payment Program $22.19/mo for 36 months $24.97/mo for 36 months $27.75/mo for 36 months $30.52/mo for 36 months

Reasons not to finance your iPhone

However, there are potential downfalls in financing. For instance, if you fail to pay off your balance within the 0% interest rate period, you’ll be subject to expensive rates that can make your bill hard to afford each month. Plus, when taking on debt, you'll increase your credit utilization, which can negatively impact your credit score. Especially if you don’t have the cash for it now, it can be tempting to go ahead and finance and worry how to pay later, but this wishful thinking can make managing money and savings more difficult. Keep in mind if your budget will allow you to juggle yet another monthly payment, for possibly up to three years. 

Overall, while financing your iPhone is a great way to stay up to date with Apple’s newest features and avoid a lump sum payment, it’s important you consider whether or not financing or buying up-front is a better option for you, considering your financial situation and what you can realistically afford. 

Next: Here's how to pay off credit card debt and save on interest.

Erin Bendig
Staff writer, personal finance

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.