Prepay vs pay monthly: which is better?
Both plan types give you data, calls and texts. The difference is how you pay and how flexible you want to be.
Prepay at a glance
- No credit check and no contract
- Recharge manually or set up auto top-up
- Often renews every 28 days, which is 13 payments a year instead of 12
- Great for budgeting, kids’ phones and anyone who likes flexibility
Pay monthly at a glance
- Billed automatically each calendar month
- Usually needs a credit check
- Often open term, but some deals need 12 or 24 months
- Can include extras like streaming subscriptions or bigger international allowances
Which is cheaper?
It depends on the plan. That 28-day cycle means a $30 prepay plan costs about $32.59 a month on average. We show this monthly equivalent in all our comparison tables so you can compare fairly.
Prices compared right now
Across the plans we compare, the typical prepay plan costs $35 a month and the typical pay monthly plan $52.50. Pay monthly plans usually come with more data, so compare like with like:
| Data a month | Prepay (typical) | Pay monthly (typical) | Cheapest overall |
|---|---|---|---|
| Up to 5GB | $20.87 (24 plans) | $37.50 (4 plans) | 2degrees $8 Monthly Plan (Prepay), $8 |
| 5GB to 20GB | $41.28 (9 plans) | $45 (11 plans) | Mighty Mobile Starter Plan, $25 |
| 20GB to 80GB | $60 (6 plans) | $59.50 (8 plans) | CloudLink Mobile 20, $40 |
| 80GB or more | $80.39 (2 plans) | $62.50 (8 plans) | Gecko Mobile Mobile100, $49 |
| Unlimited (10Mbps+) | $75 (10 plans) | $80 (9 plans) | Mighty Mobile Fast Plan, $40 |
“Typical” is the median monthly price of the plans in that range. 12-month plans and plans that need another service (like power) are left out.
The differences that catch people out
- 28 days isn’t a month. Many prepay plans renew 13 times a year.
- Expiry. On prepay, unused data usually expires at the end of each period unless the plan has rollover.
- Credit checks. Pay monthly usually needs one; prepay doesn’t.
- Phones on plans. Buying a phone on a pay monthly plan can lock you in until it’s paid off.
- Bundles. Some pay monthly plans include streaming or discounts for having power or broadband with the same company.
Our take
If you want flexibility or don’t want a credit check, prepay is hard to beat. If you’d rather never think about recharging, or want bundled extras, pay monthly may suit you better.