Is a Multi-Month Plan Right for You? Pros, Cons, and Cost Calculations

For as long as people have been shopping for essentials, buying more of something all at once usually means saving money in the long run—like how a 12-pack of soda costs less per can than just buying one. Nowadays, popular stores offer bulk purchasing, so you can buy a 36-pack of soda and save even more. And now wireless companies, like Ultra Mobile, have applied this rule to phone plans. But is a multi-month plan right for you? This blog will cover the pros and cons of buying several months of wireless upfront, including some cost calculations, so you can make the right decision. 

What is a Multi-Month Plan?

A multi-month plan is essentially purchasing your wireless service “in bulk,” just like you can with groceries. You prepay for several months of wireless service up front at a lower per-month cost than if you were to just renew your service every 30 days. Wireless carriers, especially MVNOs like Ultra Mobile, offer multi-month plans for a variety of reasons. Customers tend to appreciate the flexibility and the cost savings, while the carriers benefit by retaining customers for an extended period of time without having to lock them into contracts. But while there are many upsides to multi-month plans, they’re not without their drawbacks. Let’s dig a bit deeper into the pros and cons, shall we?  

How Multi-Month Plans Work

Multi-month plans tend to come in 3-month increments, up to one full year. Customers purchase 3, 6 or 12 months of service up front—paid in full—and enjoy that entire time without another phone bill. Nowadays most plans come with unlimited talk & text (though you may find the occasional provider still limiting your minutes and messages each month) and the main thing you need to be concerned about is the data allotment. For example, a 3-month 5GB plan will give you 5GB of high-speed data every 30 days to use for browsing, emails, streaming and more.  

The Pros of Multi-Month Plans

The main reasons people tend to prefer multi-month plans can essentially be boiled down to savings and predictability.

Lower monthly cost per line

Buying six months of service all at once tends to cost less than what you’d end up spending if you renewed one month at a time for six months straight.   

Lock in pricing for the duration of the plan

When you purchase six months of service in advance, you can rest easy knowing the carrier can’t modify that plan for the next six months. And if they increase their prices within those six months, your service is already paid for and you can’t be charged more. 

No monthly bills

Knocking out up to a year of wireless service up front means going twelve months without a phone bill—which, as you can imagine, is pretty nice.

Multi-month plans are ideal for budgeters who value savings and predictability. Being able to plan your spending well in advance helps when the time comes to purchase another plan months from now. 

The Cons of Multi-Month Plans

The things keeping most people from moving to a multi-month plan aren’t necessarily cons, but are barriers that can be overcome.

Upfront cost

Obviously paying for several months of wireless at once can seem a bit daunting, at least financially. However, if you’re currently on a postpaid plan with a major carrier, there’s a chance that you’re already paying almost as much per month as a 3 or 6-month plan would cost with an MVNO. 

Less flexibility if your needs change

Purchasing a 6-month 5GB plan only to realize one month in that you’re actually using 5GB each week can cause some frustration. This is why we recommend confirming how much data you need ahead of buying. Fortunately, here at Ultra, we offer data add-ons if you ever need a quick GB increase, or we’ll let you upgrade to a higher data amount for the remainder of your plan at a prorated rate.  

Requires a longer term commitment

Multi-month plans make the most sense when renewing with a carrier you know you’ll want to stay with for a while. Committing for several months to a carrier you’re confident in comes with the pros listed above, but also makes receiving a refund unlikely if, for any reason, you decide to switch carriers before your plan ends. 

Cost Calculations: Multi-Month vs. Monthly Plans

Looking at our plan offerings in this chart, you can see the difference between purchasing one month at a time versus purchasing a multi-month plan. For example, if you purchased our 8GB plan once a month for six months straight, you would end up paying $144 in the end, when you could purchase a 6-month plan for $114 upfront, saving you $30. Beyond that, a 12-month plan would cost $204 upfront, saving you $84 for the year. 

Depending on the plan you choose, multi-month commitments can reduce your monthly outlay by 20–50%, especially if you opt for a lower data amount or a 12-month plan. Keep in mind, you may not need unlimited data—in fact, not understanding your data usage needs is one of the most common mistakes people make when shopping for a new wireless plan.

Who Multi-Month Plans Are Best For

So does a multi-month plan make sense for you? It’s possible, especially if you describe yourself as any of the following:

• Budget-conscious customers who want predictable bills

• Loyal customers intending to stay with the same carrier for a while

• Students, families or frequent travelers who benefit from locking in the same monthly rates long-term

Tips for Choosing the Right Multi-Month Plan

Now, going back to those barriers or “cons” of choosing a multi-month plan: there are some important steps you can take to overcome them.  

Figure out your current usage ahead of purchasing

Like we’ve said before, not knowing how much data you actually need is a common mistake many people make when shopping for a new wireless plan.

Check coverage where you live, work, play and everywhere in between

Getting full signal in your living room is one thing (and honestly not even that critical if you have Wi-Fi at home, thanks to Wi-Fi Calling), but ensuring you have coverage everywhere you spend most of your time is important.

Like your current phone? Make sure it’s compatible

If you’re purchasing a multi-month plan from a different carrier than whoever you bought your phone from, you’ll need to make sure it’s unlocked and compatible with your new carrier’s network.

Check for promos or discounts for new customers

Many wireless carriers offer an introductory price for new customers, so you can try them for a few months before committing to a whole year while still saving right away. 

Ultra Mobile’s Multi-Month Options

Ultra Mobile not only offers multi-month plans, we offer dozens of different plan options, making it easy for you to find the perfect plan for you. Whether you want three months of talk & text for $39 ($13/mo), six months of 12GB for $138 ($23/mo) or a whole year of Unlimited data for just $408 ($34/mo), Ultra Mobile has the right plan for you, with the features you need.  

All Ultra Mobile plans include Unlimited Nationwide Talk & Global Text, Free Mobile Hotspot, Free Wi-Fi Calling and Unlimited Talk to 90+ International Destinations. Not to mention how easy it is to activate your Ultra Mobile plan in minutes, thanks to eSIM, and how easy it is to upgrade your plan at any time if your data needs change—or switch to a lower plan at the end of your term if you’re using less data than you anticipated.   

Weigh Your Needs, Save More

So as you can see, multi-month plans can offer some significant savings in addition to financial stability by providing a predictable wireless bill schedule at a lower monthly cost than your typical month-to-month contract. We recommend you take a minute to review your data usage and other wireless needs before shopping for plans. We even have a short quiz you can take to get paired with the right Ultra Mobile plan. Then, once you’re ready to make the switch, take a look at all the plans we have to offer to see just how much you can save with Ultra Mobile.