When this metric helps most
- Comparing packages with very different setup fees.
- Comparing 12, 18, and 24-month options fairly.
- Testing whether promo offers truly lower whole-term spend.
Last reviewed: 24 March 2026
Short answer: average monthly cost is only meaningful when calculated from full-term spend. You should include one-off charges and contract details, not just the promotional monthly headline.
This method helps compare short and long contracts fairly, especially when one deal looks cheap monthly but has higher one-off charges.
| Cost component | Include in average? | Why it matters |
|---|---|---|
| Monthly contract payments | Yes | Core spend over the minimum term. |
| Setup and activation charges | Yes | Affects first-bill affordability and full-term value. |
| Promotional periods | Yes | Promos can hide higher spend later in term. |
| In-contract rise wording | Check terms | Can materially change final spend outcome. |