Prepaid means you pay before each month, usually with no credit check. Postpaid means you're billed after, usually with a credit check and often a phone payment plan. For one person, prepaid is almost always cheaper: unlimited data costs $25 to $35 a month, often with taxes included, against $45 to $100 plus taxes on Verizon, AT&T or T-Mobile. Postpaid can come out ahead for families of four or more and for people who use carrier phone deals.
The short answer
| If you... | Pick |
|---|---|
| Have one or two lines | Prepaid |
| Bring your own phone | Prepaid |
| Don't want a credit check | Prepaid |
| Have 4 or more lines | Compare both |
| Upgrade to a new flagship phone every 2 to 3 years | Postpaid can win |
| Travel abroad often | Postpaid premium plans |
One line: prices compared
| Plan | Type | Price | Taxes |
|---|---|---|---|
| Visible | Prepaid (Verizon network) | $25 | Included |
| Metro $25 | Prepaid (T-Mobile network) | $25 | Included |
| Total Wireless MAX 5G BYO | Prepaid (Verizon network) | $25 | Included |
| Mint Unlimited | Prepaid (T-Mobile network) | $30 on 12 months | Extra |
| Verizon Simplicity | Postpaid | $45 ($30 for switchers) | Extra |
| T-Mobile Essentials Saver | Postpaid | $50 | Extra, plus $5.49 fee |
| Verizon Unlimited Plus | Postpaid | $80 | Extra |
| T-Mobile Experience More | Postpaid | $85 | Extra, plus $5.49 fee |
Four lines: the gap shrinks
| Plan | Type | 4 lines | Per line |
|---|---|---|---|
| Visible | Prepaid | $100 | $25 |
| Metro (4 lines offer) | Prepaid | $100 | $25 |
| Straight Talk StraightSAVINGS! | Prepaid | $100 + taxes | $25 |
| T-Mobile Essentials | Postpaid | $100 + taxes and fees | $25 |
| Verizon Unlimited Plus | Postpaid | $180 + taxes | $45 |
At four lines, T-Mobile Essentials costs about the same as prepaid before taxes and fees. Postpaid premium plans still cost more, but they include perks and phone deals that can be worth it for a family. Family plan details: Verizon and T-Mobile.
The phone deal math over 36 months
Postpaid phone deals look free, but they come with a pricier plan for the length of the credit. Here's one line with a $1,000 phone:
| Postpaid: Verizon Unlimited Plus + credit | Prepaid: Visible+ + buy the phone | Prepaid: Metro $25 + buy the phone | |
|---|---|---|---|
| Plan, 36 months | About $3,310 | $1,260 | $900 |
| Phone | $0 after credits | $1,000 | $1,000 |
| Total | About $3,310 | About $2,260 | About $1,900 |
Prepaid saves $1,000 or more over three years even after buying the phone at full price. Postpaid wins only when the credit is bigger than the plan price gap, which happens most often for families adding several lines at once.
What postpaid gives you
- Phone deals: trade-in and new-line credits, paid over 24 to 36 months.
- Top data priority on the premium plans.
- Perks like Netflix, Hulu or Disney+ on some tiers.
- International data on premium plans.
- Stores and in-person support.
What prepaid gives you
- Lower prices, often with taxes included.
- No credit check and no phone loan.
- Easy to leave: no balance becomes due when you switch.
- The same towers: most prepaid brands are owned by Verizon, T-Mobile or AT&T.
The catch with postpaid phone deals
Postpaid phone credits are paid monthly. If you leave before they finish, the credits stop and the remaining phone balance becomes due. So a "free" phone can tie you to a $80-plus plan for three years. Add up the plan cost over 36 months before you decide.
Prepaid's catches
On most prepaid plans, your data is slowed first when a tower is busy, hotspot is slower and support is mostly online. Some plans, like Mint, need you to pay several months upfront. Premium prepaid tiers like Visible+ ($35) fix the priority issue for a few dollars more.
Fees to watch
| Fee | Postpaid | Prepaid |
|---|---|---|
| Taxes | Usually 10% to 25% on top | Often included (Visible, Metro, Total Wireless) |
| Carrier fees | T-Mobile adds $5.49 per line | Rare |
| Activation | Often $35 to $40 per line | Usually none |
| Deposit | Possible with lower credit | None |
Paying for a year at once
Some prepaid carriers lower the price further if you pay upfront: Visible is $275 a year, Mint Unlimited is $360 for 12 months and Metro's 6-month plan is $120 for new customers. Postpaid carriers don't offer this.
Switching from postpaid to prepaid
- Check your phone works on prepaid's network and is unlocked (is my phone unlocked?).
- If you're paying off a phone, the remaining balance becomes due when you leave. Pay it off or plan for it (hidden costs of switching).
- Get your account number and number transfer PIN from postpaid. Don't cancel postpaid yourself: the move cancels it.
- Sign up with prepaid and choose to keep your number. Most newer phones can use an eSIM, so you're often live within minutes (how to switch to eSIM).
Not sure which network to pick? Most prepaid brands run on Verizon, T-Mobile or AT&T. See which MVNO uses which network.
The bottom line
For one or two people, prepaid is cheaper, often by $500 or more a year. Postpaid is worth comparing if you have four or more lines, want the newest phone on credit, or travel abroad often. More on MVNOs vs the big three.
Frequently asked questions
Is prepaid cheaper than postpaid? +
Is prepaid service worse? +
Does prepaid need a credit check? +
Can I keep my number when switching to prepaid? +
When is postpaid cheaper? +
Does prepaid have a contract? +
Is prepaid good for families? +
Can I get a new phone on prepaid? +
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Jean has tested carrier plans independently since 2019, running SIMs on all three networks and paying for every line himself. He ranks carriers on the bill you actually get, taxes and fees included, not the price on the ad.