The cheapest phone you can buy today starts at around $20 for a basic feature phone with voice and text, while the least expensive new smartphone typically costs between $100 and $200 before taxes and fees. For the lowest all-in cost, consider a prepaid bundle that includes a phone for as little as $30.
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Compare Plans →Free to compare · No credit check to browse · Affiliate-supportedWhat Is the Cheapest Phone?
The absolute cheapest phone you can buy in the US in 2026 is a basic feature phone priced around $20. These devices support voice calls and text messages but lack a web browser or app store. If you need a smartphone, entry-level models from budget-focused manufacturers start at about $100 to $200 new, though you may find refurbished or older models for as little as $60.
Prices vary by retail channel. Major carriers often sell phones at a discount with a service contract, but the savings are offset by higher plan costs. Independent electronics stores and online marketplaces typically offer the lowest upfront prices. Below is a quick comparison of price ranges for the cheapest phone types.
| Phone Type | Typical Price Range (New) | Typical Price Range (Refurbished) |
|---|---|---|
| Basic feature phone | $20 – $40 | $10 – $25 |
| Entry-level smartphone | $100 – $200 | $60 – $100 |
| Mid-range smartphone | $250 – $450 | $150 – $300 |
Prepaid vs. Postpaid: Which Saves More?
Your choice of service plan significantly affects the total cost of a cheap phone. Prepaid plans let you buy a phone outright or in a bundle with service, often for $30 to $80 total. Postpaid plans from major carriers usually require a credit check and can spread the phone cost over 24 or 36 months with zero-interest financing, but the monthly plan fee is typically higher.
- Prepaid advantage: Lower upfront cost, no long-term contract, and you can bring your own compatible phone.
- Postpaid advantage: Access to the latest phones with installment plans, but the cheapest phone on a postpaid plan might cost $0 down but then add $10–$15 per month for 24 months — making the phone $240–$360 total, plus higher plan fees.
For the absolute lowest total cost, a prepaid bundle with a basic smartphone and a low-cost data plan often wins. The Federal Communications Commission (FCC) notes that prepaid customers save an average of 30% annually compared to postpaid customers on comparable usage.
Hidden Fees and Taxes That Add Up
The sticker price of a cheap phone is not the final cost. When buying from a carrier, you often pay a one-time activation fee of $25 to $40. State and local sales taxes add an average of 8.2% (according to the Tax Foundation’s 2026 State Sales Tax Rate report). Some carriers also charge a universal service fee or regulatory cost recovery fee, typically $1–$3 per line per month.
If you buy an unlocked phone from an online retailer, sales tax still applies in most states, but activation fees are avoided. Factor in a screen protector and case — even a basic set costs $10–$20. These hidden costs can add $50–$100 to your initial purchase. Always ask for a total out-the-door price before committing.
How to Find the Best Deal on a Phone
To get the cheapest possible phone, follow these steps:
- Compare unlocked prices — Online retailers and wholesale clubs often have the best prices on entry-level phones.
- Look for prepaid bundles — Many budget providers sell a phone with one month of service for under $50.
- Consider refurbished or certified pre-owned — These phones are often 30–50% cheaper than new and carry a limited warranty.
- Check for trade-in offers — Even an old basic phone can fetch $10–$20 credit toward a new device.
- Time your purchase — Sales around holidays and back-to-school often discount entry-level phones by $20–$50.
Remember: the cheapest phone is not always the best value. Read reviews to ensure the phone supports core apps and has reliable battery life for at least a full day.
Total Cost of Ownership Over One Year
To understand how much the cheapest phone really costs, add up the phone price, taxes, fees, and one year of service. For a basic prepaid smartphone with a low-cost plan (e.g., 2–5 GB data), the total is often $300–$500. A postpaid plan with a subsidized phone can reach $600–$900 because of higher monthly fees.
If you choose a basic feature phone with a minimal talk-and-text plan, the annual total can drop to $200–$300. The Consumer Expenditure Survey by the Bureau of Labor Statistics reports that the average US household spends $1,200 per year on telephone services including devices. Going with the cheapest options can cut that by 60% or more.