Home Editorials iPhone 6: Verizon Edge vs Verizon 2-Year Contract Prices

iPhone 6: Verizon Edge vs Verizon 2-Year Contract Prices

Verizon is offering the iPhone 6 with nothing down thanks to its Verizon Edge program, but is Verizon Edge really a good deal? In this article, we will compare Verizon Edge and Verizon’s traditional two-year contract to help you decide which way to purchase your iPhone 6 or iPhone 6 Plus.

So what’s better? The Verizon Edge or Verizon Contracts? That answer completely depends on how often you plan on upgrading, how much cash you have on hand and how much data you need. It also depends on if you want to be married to Verizon for the next two years or not. Read on for the full explanation.

Note: Visit Verizon.com’s iPhone 6 order page to experiment with pricing options yourself as pricing and incentives may change. 

Update: As of July 2015 Verizon no longer offers the Verizon Edge program. Instead, the carrier now offers a Device Payment plan. While the Verizon Device Payment option is similar in some ways to the Verizon Edge program, there are some key differences. You can read more about the changes here.

http://www.gottabemobile.com/2015/05/31/new-verizon-edge-paves-way-for-iphone-6s-release/

Traditionally, wireless carriers have sold iPhones and other devices far below full price. In the case of the iPhone 6, Verizon pays a $450 subsidy to Apple every time it sells an iPhone. That means the $199 iPhone 6 starting price is actually quite a deal, but there’s more to it than that. Obviously, Verizon isn’t paying subsidies out of the  kindness of its heart. Instead, it builds the $450 into subscribers’ contracts, though there isn’t a separate line item for it. One problem with this model is that subscribers generally have to pay early termination fees if they chose to switch to another carrier or cancel service. Those who want to upgrade to the latest and greatest phones before their contracts expire generally have to pay full price for new iPhones.

Screenshot 2014-09-17 13.12.38Verizon Edge is an example of a program that separates the iPhone 6 purchase from traditional two-year wireless contracts.  Instead, Verizon Edge agreements last for 20 months and allow users more flexibility when upgrading. Rather than offering phones for $199 (subsidized price) or $649 (full price) , Verizon sells the device to you for full price ($649), but spreads the payments out over 20 months. To partially offset the increased cost, Verizon offers a $15 monthly credit for plans that include up to 8GB of data per month. It offers a $25 monthly discount off 10GB and higher everything plans. Verizon also waives its $35 upgrade fee  on Verizon Edge plans. Verizon Edge customers can cancel their Verizon service at any time so long as they continue to pay off the device or pay it off in a lump sum.

iPhone 6, Verizon Single Line Edge 2GB/mo
iPhone 6, Verizon Single Line Edge 2GB/mo

After 60% of a phone’s price is paid off with the monthly installments, Verizon will allow its customer to turn it in and upgrade to a new phone with no additional fees. The old iPhone does have to be in good working order and customers lose the opportunity to resell it for more than the total of the remaining payments.  Users will have to sign up for new 20-month Edge Agreements each time they get a new iPhone.

Verizon really wants to get rid of individual contracts and severely limits individual plan subscribers’ options. In fact, there’s only one option available right now: 2GB of Data with unlimited talk and text for $60 per month. If you want more or less data you need to sign up for a MORE Everything plan. With MORE Everything plans you pay for a shared bucket of data and can add lines for $40 per month. Verizon clearly wants to make it easier to tempt people into adding lines for their kids and relatives so they can sell as many lines as possible.

If you don’t have $199 or more to buy a new iPhone 6 for you or a family member you may be wondering if the Edge program is a good deal or not. Here’s how it breaks down:

Verizon EDGE vs Verizon Contract Pricing

Verizon PlanDue at PurchaseActivation FeeEdge PaymentsMonthly ServiceTotal Cost 1st YearTotal Cost Two Years/ End of Payments
Verizon Contract, 1GB Single Line$199.99$40$0$60$960$1,680
Verizon Edge, 1GB Single Line$0$0$27.08$45$865$1,730
Verizon Contract, 2GB Single Line$199.99$40$0.00$75$1,140$2,040
Verizon Edge, 2GB Single Line$0$0$27.08$60$1,045$2,090
Verizon Contract, 2GB More Everything$199.99$40$0$80$1,200$2,160
Verizon Edge, 2GB More Everything$0$0$27.08$60$1,045$2,090
Verizon Contract, 4GB More Everything$199.99$40$0.00$100$1,440$2,640
Verizon Edge, 4GB More Everything$0$0$27.08$85$1,345$2,690
Verizon Contract, 6GB More Everything$199.99$40$0$110$1,560$2,880
Verizon Edge, 6GB More Everything$0$0$27.08$85$1,345$2,690
Verizon Contract, 10GB More Everything$199.99$40$0.00$140$1,920$3,600
Verizon Edge, 10GB More Everything$0$0$27.08$115$1,705$3,410

iphone 6 plus goldIf you’re content with the iPhone 6 and planning to keep it for the full two years of the contract the Verizon Contract is significantly cheaper than the 2GB Verizon Edge plan. It saves $50 over the two year contract. No, that’s not a typo, you will save $50 by paying $199 upfront for your iPhone 6 compared to signing up for Verizon Edge if you’re a sole subscriber that doesn’t need more than 2GB of data per month. With the individual plan you do give up the chance to add more lines and share data.

If you want to upgrade to the iPhone 7 or whatever Apple’s going to call their next iPhone as soon as it launches, you’re basically paying $50 for the option to do so with the Edge program.

Before dismissing the EDGE plan as a bad deal, you should consider that it actually saves money for some people, even if they keep the iPhone 6 for the full two years rather than upgrading after 12 months. For example, those that need more data might sign up for the 10GB More Everything Plan and Edge will spend $3,410 plus tax over two years. Those who chose to pay $199 upfront on the same plan will spend $3,600, or $190 more than if they make Edge installment payments. That’s a bad deal because they don’t have the option to trade up to a new after a year. The reason the difference is so big with the 10GB+ More Everything plans is because Verizon offers that $25 monthly discount for Edge subscribers, rather than the $15 discount for lower data plans.

Another thing to consider when comparing Edge or standard plans is tax. In some states, including California and Nevada,  iPhone buyers are responsible for paying tax on the full retail price of the phone up front. That means a tax charge on your first bill based on the $649 retail price, not the $199 advertised price. In San Francisco, for example, the tax comes out to $57. With Edge pricing, that amount is spread out over 20 months, or about $2.85 per month.

The best way to get a good deal on the iPhone 6 from Verizon is to make sure you buy a plan that matches the amount of data you need and to decide now when you’re going to buy your next phone after the iPhone 6.

 

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34 Comments

  1. Kristopher

    09/20/2014 at 5:37 pm

    This article is wrong. Verizon is giving a $25 credit a month for edge customers with 10gbs. This makes the edge program a amazing deal. If you have 8gb data plan they still give you $15.

    Reply

    • Jake

      10/07/2014 at 10:03 pm

      Thats what it said .. Re-read plz

      Reply

  2. Justin

    09/20/2014 at 8:52 pm

    Yes. They also have a $45 Single Line on postpaid so they are trying to make Verizon look expensive and money hungry when they have the lowest prices compared to every other carrier, basically.

    Reply

  3. Wendy

    10/16/2014 at 1:00 pm

    Yesterday Verizon told me Edge was 20 months of payments to own the phone. Today they told me it changed AS OF TODAY to 24 months of payments — at $30/month that’s an extra $120 purchase price per phone

    Reply

  4. Darin

    10/20/2014 at 11:17 am

    So if I got on edge plan and Ipay $30 a month for the phone I still pay the $40 smartphone fee plus my data plan?

    Reply

    • Ben

      10/29/2014 at 7:46 pm

      Yes you will still need to pay your smartphone fee + data plan. BUT, as the article said, if you are using more than $10 GB data, then your monthly smartphone fee will be $15 instead of $40. Which makes the Edge program $185 cheaper than the 2 Years contract.
      Read the article again, it explained everything very clear.

      Reply

  5. Auntie K

    10/24/2014 at 4:35 pm

    Love your easy to see break down of options. WIsh you could also break down the Edge plans vs Contract plan for those who have more people on their account – say a family of 4. A break down of all new phones vs 2 new/2 paid for, etc would be helpful for families out there (mine included!)

    Reply

  6. Tim Nikolaev (@TimNikolaev)

    10/29/2014 at 1:08 pm

    In the case of upgrading every year: if you have monthly plan, you just sell the phone and buy retail (usually loosing $200), in the case of edge that part is free?

    Reply

    • NickM

      12/05/2014 at 7:57 pm

      No you have to pay 75% of the phone cost before you can upgrade. So you would have to pay lets say that $200ish first before you can get a new phone

      Reply

  7. Rahat

    10/30/2014 at 11:59 am

    Good article! Cleared a lot up for me!

    Reply

  8. donna

    11/06/2014 at 10:01 am

    I purchased 5 smartphones yesterday thru the Verizon kiosk at Costco. 3 Galaxy S4 and 2 note 4s. The edge program was the best deal for us. We’ll share 15Gb ofor data at $160 mo. The Samsung Galaxy S4 will be $20 mo/each for 24 mos. The Note 4s will be $29 mo each. A discount of $25 per line was given making the phone costs awash. Total will be $310 mo with taxes. I had to pay sales tax on the full price of phones which was $40 ea. We keep our phones too, but if we want newest and greatest we can upgrade in 18 mos.

    Reply

  9. Joe Martineau

    11/20/2014 at 1:05 am

    Assuming you are on a 10GB or higher plan for Verizon here is a straight forward breakdown of cost for devices as of 11/20/2014 with 2 service contact upfront cost(includes $30 upg fee) vs 24 monthly payments on edge and no service contract:

    Droid Turbo: 2yr = $229.99, Edge = FREE
    Galaxy S5: 2yr = $229.99, Edge = FREE
    LG G3:. 2yr = $229.99, Edge = FREE
    iPhone 6 16gb: 2yr = $229.99, Edge = $49.92
    iPhone 6+ 16gb: 2yr = $329.99, Edge = $149.99

    Is a simple math problem. I’ll even do it if you’re on a plan below 10gb.

    Droid Turbo: 2yr = $229.99, Edge = $239.99
    Galaxy S5: 2yr = $229.99, Edge = $239.99
    LG G3:. 2yr = $229.99, Edge = $239.99
    iPhone 6 16gb: 2yr = $229.99, Edge = $289.99
    iPhone 6+ 16gb: 2yr = $329.99, Edge = $389.99

    What’s better is that when you’re device on edge is paid off you CONTINUE to keep getting the edge discount which makes your service cost you less than when it started. How does this plan not make sense to anyone?

    Reply

    • Jenn

      11/20/2014 at 6:15 pm

      Do you continue to make monthly payments once the device is paid off?

      Reply

  10. Kimberly

    11/21/2014 at 1:55 am

    Ok. I’ve done the math and it will actually be better for me and my family to go with the Edge program if we bump up to 10 GB plan where we get the $25 discount. My fear is that Verizon will decide to drop the discount. Than the plan becomes way more expensive. Because there is no contract, I feel this could be a real possibility. Any thoughts on that happening?

    Reply

    • Lisa

      12/13/2014 at 3:14 am

      I too feel that this is what will happen. They used to offer a lot of perks and they have taken them away over the years. I have been with them a very long time and I remember. So I will not be going to the Edge program. Lets face it, they aren’t offering this so that they lose money. They are making money somewhere.

      Reply

      • kayne

        08/26/2015 at 10:53 am

        Yeah your monthly payment for the phone, they make a little more per month then they would have originally instead of the 199 up front

        Reply

  11. Chuck K.

    11/23/2014 at 3:35 pm

    I believe that pricing grid is failing to account for the $15/$25 monthly discounts? The way Verizon described it to me yesterday was, that, if I bought an iPhone 6/16gb on the edge plan – it would cost me $24.xx a month. HOWEVER, being on a 10gb plan More Everything plan, I would receive a $25/month credit — which would not only negate the monthly Edge fee … it would reduce my monthly bill by a few cents from where it is now.

    Reply

  12. odog

    11/24/2014 at 10:03 am

    FYI, if you get a 10gb plan, its only $15/line per month even if you bring your own iphone 6 phone. They do ask you to commit to a 2 year contract if you have your own verizon iphone. You can sell your phone after a year, make good money and do it all over again (unless they raise the price). The contract is for line access and not tied to the phone. This way you can take advantage of potential holiday iphone sales, and get great cell service at the best price. I myself plan on using the edge for 3 x 64gb iphones. My total bill will be around $250/mo on the 10gb plan, but will save me the upfront cost of 3 x $300 for 2 year contracts. I’m switching 3 lines from att for a $450 bill credit over the next few months, and trading in one iphone 5s 32gb for $300. Yay Verizon! Though I will likely switch back to att in 2 years for a nice rebate at that time. The cameras are so great on the iphone 6 that I will be plenty happy over 2 years of usage.

    Reply

  13. Jay

    11/30/2014 at 11:20 am

    I haven’t bought a phone in a while and have been out of contact since February. My phone died last week, and I’ve been shopping. I’m not specifically looking at an iPhone, in fact I like the Note4 but if I get it, I’m going to do a contract and here’s why:

    I have an unlimited talk/text plus 3gb plan with Verizon
    The Note 4 is advertised as $699 to buy outright.
    Edge will cost $29/month for 24 months.
    Or $199 on 2 year contract.

    Assuming I keep the phone for 2 years (as I have always done, so I’m used to that), I will play $199 for the phone on contract vs. $718.00 on Edge plan.

    Yes, if I cancel early, I have to pay $350 termination fee, but that’s only a total of $550 and I keep the handset.

    Edge, I was told, allows you to “trade in” your phone “after 75% of it is paid off,” which comes to $525 (ironically very close to the $550 with cancellation) and I have to give the handset back.

    Barring any other discounts the sales person didn’t tell me about, why would I ever go with the edge plan? What am I missing??

    I think they push the edge plans because on average in the long run, they will get more cash out of the customer more often all why selling the concept in the idea of no money down.

    Again, seriously, what am I missing?

    Thanks, J

    Reply

    • Brian

      12/15/2014 at 7:20 pm

      If you do the edge plan and have 10gb or over on the family plan, then you get a credit of $25 o month on your line. So for example, if you were to upgrade to the note 4 it would cost you about $30/month on the edge plan. However subtract the discount of $25 and you are really paying an extra $5 a month on your plan. Multiply that by 24 months and that is about $120. So, if you were to use the edge plan to get the note 4, it would only cost you $120 over the course of the 2 years as opposed to $299+$35 activation fee=~$335. That is a savings of $215 and you have to pay nothing up front (aside from sales tax on the phone). Additionally, if you keep your phone the full 24 months, it is yours to keep. Meaning that if you decide to edge up to a new phone, you don’t have to give the old one back. However, if you edge up before the 2 years is up, you do have to trade in your phone. Lastly, if you don’t choose to upgrade after 2 years, your phone will be paid off and your bill will be $25 less… So… basically, if you have a family plan with 10gb and plan to keep your phone the entire 24 months…. the edge plan is kind of a no brainer

      Reply

      • jimmy

        12/23/2014 at 11:07 am

        I just signed up for the Edge plan on a new Iphone 6 tand worried I ripped myself off. But I think the math works for me (3 smart phones, 1 dumb phone with 10gb shareable data) As some here have stated, the line access is $15 per month on the edge plan for that (iphone 6) phone. I was also told that when other phones are up for an upgrade (I have an Iphone 4 & 5 on my current plan), that the monthly access is also $15, but you have to call them to make sure that happens. Thats $300 per year off each phone that “is paid for.” Thats what they told me anyway.

        Reply

  14. Spencer Wallman

    12/01/2014 at 6:49 am

    On single plans where you won’t get as big of a discount on your data then you’re right – you really are better off going with what you’re talking about. Where Edge makes a big difference is for folks with larger plans (10GB+ of data) – you get a significant discount on your data plan using Edge.

    Reply

  15. Nathan

    12/03/2014 at 8:07 pm

    I just got burned by the edge program.

    I edged up from the 5s to the 6 after having the 5s for a year. I signed a new 2 year contract with the 6, assuming once I turned the 5s in any remaining edge payments would end. Bad assumption. Verizon charged me $450 for the 5s stating I was still obligated to pay the full price of the phone as the edge program is a 20 month agreement.

    I’m still fighting with Verizon over this but from my experience, The edge program is deceptive. Turns out when you edge up, you need to stay in the edge program when you get the new phone to not get charged the remainder on the old phone.

    Again, I made a bad assumption. I share blame in this issue.

    Reply

  16. Kim

    12/11/2014 at 2:11 pm

    I have the edge plan too and thought the monthly subscription discount would save me money over 20 mos..but what they don’t tell you is that they really charge you for 24 mos and add insurance every month of $10. So my plan was $40 – $15 + $10 = $35 per month plus $100 per month for 10g data. I don’t own the phone so I will have nothing to sell when I want to upgrade early (the only benefit of edge). I’ve paid 9 of 24 payments and they said I would have to pay $93 more to get out of edge and either turn in my phone or upgrade.

    Reply

  17. Jenelle

    12/19/2014 at 7:56 pm

    I’m trying to figure out if this is really worth it because it feels like “leasing” a car…you get the bells and whistles, but it’s not really yours…but, it can be after full price.

    Reply

  18. Alan

    12/26/2014 at 10:23 am

    We just edged up, it is more ideal for a family that can at least pay for the 10 gigs and get the phone access for 15 a month. If you buy the phone outright you are going to pay the 40 dollar access fee no matter what. So when you do that you are going to pay 199.99 for the iPhone plus taxes and then spend 40.00 a month x 24 months= 960.00 so utilmately you are paying over 1160.00 for the phone. That’s what sold me on the edge, if I’m gonna get screwed paying a high price to have these amazing phones might as well break it down so it isn’t so hurtful to pocket book when I’m buying 4 at a time.

    Reply

  19. Scott

    12/27/2014 at 12:08 pm

    We just got a new i6 phone on the edge plan with 10 gb and it seems too good to be true. Our 4 phone family plan bill will actually reduce a little. What am I missing? I assume they r waiting for me to tire of the phone and want to trade it in early?

    Reply

  20. Richie1820

    12/28/2014 at 6:19 am

    We just upgraded 3 of our 4 phones to the Edge plan yesterday. I made a spreadsheet to compare all of the costs (not incl. taxes/fees). Our bill will be ~$15 more per month ($255 vs. $240) but we pay $735 less upfront for the phones we’re upgrading than if we paid out of pocket (2 64gb and 1 16gb phones; 10gb data plan). We won’t upgrade again before 18-24 months so we’ll end up ~$380 ahead after 2 years even with the slightly higher monthly bill.

    Reply

  21. peaches

    01/25/2015 at 9:32 am

    So if i get the iphone 6 16gb 2yr agreement, how much will my monthly bill be for a single line plan?

    Reply

  22. peaches

    01/25/2015 at 9:41 am

    So basically if you have a family plan the monthly bill for you both will be 40$?

    Reply

  23. Dan

    03/13/2015 at 7:52 pm

    Another thing I found out on the Edge plan, which is essentially a ‘Lease to own’ plan. While you are paying it off, you don’t own it technically. If you break the phone during your 24 month payoff, you need to pay off the remainders full amount in order to upgrade again. So now you are paying off a broken device. So Insurance is a good idea! Truth be told however, VZW is paying for your phone, or at least a majority of it. As of today, in my area it is $25/mo off your plan with a 6GB or higher plan. So if you don’t take advantage of the early upgrade option, and keep the phone for 2 years, your doing OK…

    Reply

  24. diamond

    07/28/2015 at 3:11 pm

    Hello guys i need help, btw i love this article it really helped me. I want a new phone such as a iphone either the 6 or 5s . As you can see im only 18 and im still in school, i don’t have a lot of money lol, atleast not yet. My question is okay say i have $150 to my name for me to get a new phone and plan . I see the verizon edge splits it and i love that. So lets say i pick my plan and phone and monthly i will have to pay $97 each month. That’s really not bad. Will i still have to put a down payment? Or i will just pay for phone and activation fee and tax and then $97 a month, or do i have to put a payment down? Im asking because everytime i get hype to getting a new phone its always extra charges. For instance i was online on sprint and sprint said $80 per month with iphone6 and plan but i have to put down a $365 down payment i was highly upset. So im hoping verizon is perfect for me and that i will only have to spend atleast $160 please help me guys please thank you.

    Reply

  25. Terryjlayman

    09/28/2015 at 8:48 am

    good look

    Reply

  26. Anne

    02/16/2016 at 9:56 pm

    I was told when I upgraded my iPhone that I would receive a 25.00 credit on my payment. But I was on an old plan & only had 4 gb of data. They didn’t tell me I had to have 10gb of data to get the 25.00 discount. To my surprise when I got my bill, I am billed the full amount of the monthly payment on 2 phones. Getting very ticked off at Verizon. They are very confusing & misleading.

    Reply

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