Anyone here good with numbers?

[andrewducker]

I'm currently looking at the difference in price between going to a Samsung Galaxy Nexus by getting a contract (£35-ish/month) or by buying up front (£480+10/month). This works out to about £120-£140 cheaper by buying the phone myself, depending on exactly how I do it.

My question, then, is about discounting future costs. If I spend £480 now rather than in chunks then I lose the utility of that money over the next two years. How does one account for that?

I assume there's a simple equation I could plug in that would tell me to stop being so stupid and just buy the fucking phone, but I'd like to be sure...

Comments

[emceeaich]

What's the other thing you could do with the £480 now? Bank it? Fix something at your home? Lavish your fiancee in jewels? That's your opportunity cost.

[andrewducker]

Yes, but that then means I'd be spending £36/month and not doing something else later. And I want to know the numeric difference.