Key takeaways
- Count the full cost: plan with tax plus the phone, over the same number of months
- Phone financing usually runs 24 months; leave early and you pay the rest of the balance
- A security deposit is refundable, but it ties up your cash
- Example prices on October 5, 2026: Public Mobile 50 GB $35 (prepaid), Rogers newcomer 100 GB $65 (postpaid)
- Prepaid is usually cheaper if you already own an unlocked phone
Prepaid vs postpaid: what you pay for
With prepaid, you pay before each 30-day or monthly period. There is no credit check and no contract. You buy your phone yourself or bring one.
With postpaid, you get a bill after each month. The carrier may check your credit. Many newcomers choose postpaid to get a phone with no or low upfront cost, paid in monthly instalments, usually over 24 months. If your credit file is new, the carrier may ask for a security deposit.
Since June 12, 2026, neither type may charge an activation fee, and a provider may not charge a cancellation fee unless you got a subsidized phone. Read the activation fee ban.
How the calculator counts
- Prepaid total = prepaid plan price × (1 + your tax rate) × months + the phone you buy outright.
- Postpaid total = postpaid plan price × (1 + tax rate) × months + down payment + the monthly phone payments made in that period.
- If the phone payments last longer than the months you compare, we show the balance you would still owe.
- A deposit is shown separately. It is not counted as a cost, because you should get it back.
Worked example
Sara lives in Ontario (13% HST). She compares two options over 24 months.
- Prepaid: $35 plan + a $600 phone she buys outright. $35 × 1.13 × 24 = $949.20. Total $1,549.20.
- Postpaid: $65 plan + $0 down + $25 a month for 24 months for a phone. $65 × 1.13 × 24 = $1,762.80, plus $600 in phone payments. Total $2,362.80.
Prepaid costs $813.60 less over two years, even after buying the phone. The postpaid plan includes more data (100 GB) and US use, so the right choice depends on what you need. The phone prices in this example are for illustration only.
When postpaid makes sense
- You need a new phone now and cannot pay for it upfront.
- You want features that prepaid brands do not offer, such as large 5G+ data, US roaming or stores for help.
- You can get a multi-line or bundle discount. Check it with the bundle savings calculator.
Compare actual offers in best phone plans for newcomers and see real prices with tax in the mobile plan cost calculator. A phone plan does not build your credit score by itself; for that, see credit cards with no credit history.
Credit checks and deposits for newcomers
Postpaid carriers usually check your credit with a credit bureau. A newcomer has no Canadian credit file, so the carrier may ask for a refundable security deposit, set a lower spending limit, or limit how much phone financing you can get. Ask how long the deposit is held and how it is returned. Prepaid avoids all of this. After a few months of on-time bills and a credit card, postpaid becomes easier to get.