Mobile phone contracts in Germany: calculating the true cost and knowing your rights
With fixed-term contracts, base price, connection fee, device payment and the price after the minimum term all belong in the same calculation. How to work them out honestly.
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A fixed-term contract can be attractive because of its price, the included services or device financing. What matters is what you pay over the entire minimum term and what service applies afterwards.
In short: A mobile phone contract in Germany may run for no more than 24 months and can be cancelled monthly afterwards. Whether a contract with a smartphone is cheaper than SIM-only plus buying the phone separately only shows up in the total cost over the full term. You can cancel online using the cancellation button.
Write down the total price
Add up all monthly prices, connection fees, the device payment and delivery. Only deduct bonuses whose conditions you are sure to meet. This makes bundles comparable with buying a device separately.
Worked example: contract with phone or SIM-only?
Example figures over 24 months for the same smartphone:
| Item | Contract with phone | SIM-only + purchase |
|---|---|---|
| Connection fee | €39.99 | €0 |
| Monthly price × 24 | €959.76 (€39.99) | €359.76 (€14.99) |
| Phone / upfront payment | €99.00 | €799.00 |
| Total | €1,098.75 | €1,158.76 |
Here the bundle is around €60 cheaper. That can quickly change: if the phone price drops in the shops or the SIM-only plan is cheaper, buying separately wins. Compare your offers with the effective price calculator.
Flexibility has a value
Check the notice period, renewal rules and the price after the minimum term ends. If your needs or where you live are likely to change, a flexible tariff may make more sense.
- Contract term and price in the following months
- Show device costs separately
- Throttling once the allowance is used
- Check eSIM, MultiSIM and roaming
Your rights with a mobile contract
- No more than 24 months: The initial term may not be longer. Providers must also offer you a contract of no more than 12 months (section 56 TKG).
- Monthly cancellation afterwards: If the contract renews after the minimum term, you can cancel at any time with one month's notice.
- Contract summary: Before you sign, the provider must give you a short overview of price, term and service (section 54 TKG).
- Cancellation button: Contracts concluded online must also be cancellable online via a clearly visible button (section 312k BGB).
If you want to stay flexible, prepaid or a monthly rolling plan is an alternative. Our guide to switching provider explains how to switch without an outage; compare plans in the comparison.
If your mobile internet is permanently much slower than your contract says, you have been able to reduce your bill or cancel since 20 April 2026. You prove it with the Bundesnetzagentur app, as described in Breitbandmessung: speed test and refunds.
Frequently asked questions
How long am I tied to a mobile contract?
A minimum term of 24 months is common, and consumer contracts may not be longer. Providers must also offer you a contract with a term of no more than twelve months (§ 56(1) TKG). Many also offer the same tariffs on a monthly rolling basis, usually for a surcharge or a higher connection fee. Once the minimum term has ended, the contract continues indefinitely and can be cancelled at any time with one month's notice (§ 56(3) TKG).
What happens when the minimum term ends?
If you don't cancel, the contract continues indefinitely and can then be cancelled with one month's notice. The price often changes at this point because time-limited discounts expire. So check in good time whether the new price still suits your needs.
Is a contract with a phone cheaper than buying the phone separately?
Only a full calculation can answer that. Add up the connection fee, all monthly prices and the device payment over the minimum term, and compare the total with the device's purchase price plus a suitable SIM-only tariff. Only include bonuses if you are sure to meet their conditions.
Is there a cancellation button for mobile contracts?
Yes. If the contract was concluded online, the provider must offer a clearly visible cancellation button on its website (section 312k BGB). You can use it to cancel directly and you receive a confirmation of receipt.
What is the contract summary?
A short, standardised document the provider must give you before you sign. It contains the key points such as price, term, cancellation conditions and data rate (section 54 TKG). The contract only becomes effective once you have confirmed it.
Is a mobile contract without a minimum term worth it?
Often, if the extra cost is small: you can switch to a cheaper plan at any time and stay flexible if you move or your needs change. If the price difference is large, a fixed term is more likely to pay off – work out the total cost of both options.
Selected sources
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