Is the Apple lease program actually cheaper than buying an iPhone?
Apple Upgrade is Apple’s lease program, run by Klarna, for iPhone, iPad, Mac and Apple Watch. It replaced the iPhone Upgrade Program in July 2026. Pick a device to see whether leasing or buying costs less.
Short answer: for most people, no. At typical resale values, buying beats leasing for all 15 eligible products. One exception pays off: lease, then buy the device out. That is 0% financing you can walk away from.
Your scenario
Buying the iPhone 17 Pro beats the lease by $250 at 52% resale.
Where leasing and buying cost the same
Blue is leasing: flat, because you hand the device back. Red is buying then selling: it falls as resale rises. They cross at the break-even. Left of it leasing wins; right of it buying wins. Tap or drag to move your resale guess.
What you’ve paid, month by month
Leasing spreads the cost; buying pays it all on day one. The dashed line is lease then buyout: it follows the lease payments and steps up to the full price at the end, so its total equals buying outright. Green is buying minus what the device is still worth. Tap or hover for monthly figures.
Leasing loses for almost everyone, with one exception
Leasing wins only if the device is worth under about 30% of its price at the end (23-31% on 36-month Mac and iPad leases). Apple devices usually keep 45-60% after two years. So for all 15 products here, handing it back loses money.
The exception, and it’s a good one: lease, then buy it out. Payments plus the buyout fee equal the full price, so it is 0% financing. On an iPhone 17 Pro you pay $331 at month 24 for a phone worth about $550, then sell it yourself. Hand it back instead and that $220 is gone.
Straight leasing still makes sense in three cases: you upgrade every year and hate selling old devices; you want to be able to hand back something that loses value fast; or you can’t pay $1,099 up front and the lower monthly is what makes it possible.
Everyone else: buy outright, or lease and take the buyout. The buyout is the only place the math favors you.
Every eligible product
All 15 eligible models on both terms (Hermès watches aside). Break-even is the resale value below which leasing is cheaper. Click a heading to sort, or a row to load it.
Swipe the table sideways for buyout, break-even and resale.
| Product | Retail | Term | Monthly | Total payments | Buyout fee | Break-even | Typical resale |
|---|---|---|---|---|---|---|---|
| iPhone | |||||||
| iPhone 17 Pro | $1,099 | 24 mo | $31.99 | $767.76 | $331.24 | 30% | 45-58% |
| iPhone 17 Pro | $1,099 | 12 mo | $45.99 | $551.88 | $547.12 | 50% | 53-66% |
| iPhone Air | $999 | 24 mo | $28.99 | $695.76 | $303.24 | 30% | 42-55% |
| iPhone Air | $999 | 12 mo | $41.99 | $503.88 | $495.12 | 50% | 50-63% |
| iPhone 17 | $799 | 24 mo | $22.99 | $551.76 | $247.24 | 31% | 42-55% |
| iPhone 17 | $799 | 12 mo | $32.99 | $395.88 | $403.12 | 50% | 50-63% |
| iPhone 17e | $599 | 24 mo | $17.99 | $431.76 | $167.24 | 28% | 38-50% |
| iPhone 17e | $599 | 12 mo | $24.99 | $299.88 | $299.12 | 50% | 46-58% |
| iPad | |||||||
| iPad Pro | $1,199 | 36 mo | $24.99 | $899.64 | $299.36 | 25% | 40-52% |
| iPad Pro | $1,199 | 24 mo | $31.99 | $767.76 | $431.24 | 36% | 48-60% |
| iPad Air | $749 | 36 mo | $15.99 | $575.64 | $173.36 | 23% | 35-48% |
| iPad Air | $749 | 24 mo | $19.99 | $479.76 | $269.24 | 36% | 43-56% |
| iPad mini | $599 | 36 mo | $11.99 | $431.64 | $167.36 | 28% | 38-50% |
| iPad mini | $599 | 24 mo | $15.99 | $383.76 | $215.24 | 36% | 46-58% |
| Mac | |||||||
| MacBook Air 13″ | $1,299 | 36 mo | $24.99 | $899.64 | $399.36 | 31% | 40-55% |
| MacBook Air 13″ | $1,299 | 24 mo | $34.99 | $839.76 | $459.24 | 35% | 48-63% |
| MacBook Air 15″ | $1,499 | 36 mo | $28.99 | $1,043.64 | $455.36 | 30% | 40-55% |
| MacBook Air 15″ | $1,499 | 24 mo | ~$40.99 | ~$983.76 | ~$515.24 | 34% | 48-63% |
| MacBook Pro 14″ | $1,999 | 36 mo | $38.99 | $1,403.64 | $595.36 | 30% | 45-58% |
| MacBook Pro 14″ | $1,999 | 24 mo | $53.99 | $1,295.76 | $703.24 | 35% | 53-66% |
| MacBook Pro 16″ | $2,999 | 36 mo | $57.99 | $2,087.64 | $911.36 | 30% | 45-58% |
| MacBook Pro 16″ | $2,999 | 24 mo | ~$80.99 | ~$1,943.76 | ~$1,055.24 | 35% | 53-66% |
| iMac | $1,499 | 36 mo | $28.99 | $1,043.64 | $455.36 | 30% | 35-48% |
| iMac | $1,499 | 24 mo | $40.99 | $983.76 | $515.24 | 34% | 43-56% |
| Mac Studio | $2,499 | 36 mo | $48.99 | $1,763.64 | $735.36 | 29% | 40-55% |
| Mac Studio | $2,499 | 24 mo | $67.99 | $1,631.76 | $867.24 | 35% | 48-63% |
| Apple Watch | |||||||
| Watch Series 11 | $399 | 24 mo | $11.99 | $287.76 | $111.24 | 28% | 30-42% |
| Watch Series 11 | $399 | 12 mo | $21.99 | $263.88 | $135.12 | 34% | 38-50% |
| Watch Ultra 3 | $799 | 24 mo | $24.99 | $599.76 | $199.24 | 25% | 35-48% |
| Watch Ultra 3 | $799 | 12 mo | $44.99 | $539.88 | $259.12 | 32% | 43-56% |
How far must resale fall before leasing wins?
Each bar ends at the break-even. The grey band behind it is what that device actually resells for at the end of that term. A bar that stops left of its band means leasing loses, and that is every product here. Right-hand numbers: break-even for the longer and shorter term. Tap a bar to load it.
The cheapest way in
Leases start at $11.99 a month (Apple Watch Series 11 or iPad mini). Lowest monthly is not lowest total: the 12-month Watch lease is $263.88 all in, 66% of the watch’s price for one year of use. Headline prices exclude tax and AppleCare and assume no trade-in.
iPad mini · 36 mo
$599 retail
$1,299 retail
MacBook Pro 16″ 24 mo costs more (estimated)
What happens at the end of an Apple Upgrade lease?
Four options. One happens by itself if you do nothing.
Sign a new lease and send the old device back. Upgrading early costs up to your remaining payments, and each upgrade needs a fresh credit check.
Return the device at the end of the term and you owe nothing. Leaving early costs up to your remaining payments, and you still return the device.
Pay the buyout fee: full price minus what you’ve already paid, plus tax. On a $1,099 iPhone 17 Pro after 24 months that’s $331. Almost always the smart move.
The lease keeps charging month to month, and any trade-in discount disappears, so the bill goes up. After six months Klarna charges the full buyout fee automatically.
Damage means a damage fee, and even with AppleCare you may pay a service fee. It’s the one cost this calculator can’t predict.
Ten things people say about it, checked
All ten are true. A few need a footnote.
True, unless you pay the buyout fee. Otherwise it goes back.
Nothing while it’s leased; it isn’t yours to sell. To get any resale value you have to buy it out first. That is exactly where the money is.
True. Add it within 60 days (billed by Apple) or use AppleCare One. The standard one-year warranty still applies.
True. After 14 days, quitting early costs all remaining payments plus tax. It never saves money; you just lose the device sooner.
Free at the end of your term. Early, you pay the months you skip: upgrade at month 21 of 24 and you owe about three months.
True. Return it within 14 days of receiving it and the lease is canceled once Apple has it back.
True, and US territories are out too. You need to be a US resident, 18+, with a US credit or debit card (no prepaid) and an Apple ID.
iPhone only: AT&T, T-Mobile or Verizon at sign-up, no prepaid plans. iPad, Mac and Watch need no carrier. The iPhone ships unlocked, so you can switch later.
True. No down payment and no paying it off faster. A trade-in can lower the monthly, but only at sign-up, not on later upgrades.
Mostly. In: every iPhone except iPhone 16, MacBook Air and Pro, iMac, Mac Studio, iPad Pro, Air and mini, Watch Series 11 and Ultra 3 (Hermès too). Out: the cheapest models (base iPad, MacBook Neo, Watch SE 3) and every Mac mini, the new M6 included. Yet the $599 iPhone 17e is in. Less “high end” than “whatever Apple wants you upgrading”.
Apple Upgrade Program: common questions
What is the Apple lease program?
Apple Upgrade is Apple's device leasing program, provided by Klarna, for iPhone, iPad, Mac and Apple Watch. You pay a fixed monthly price over a 12-, 24- or 36-month term. At the end you can upgrade, hand the device back, or keep it by paying the purchase option fee. Payments plus that fee always add up to the retail price.
Is the iPhone Upgrade Program still available?
No. Apple Upgrade replaced the iPhone Upgrade Program and iPhone Payments in the United States when it launched in July 2026, and extended the idea to iPad, Mac and Apple Watch.
Apple Upgrade vs the iPhone Upgrade Program: what changed?
The iPhone Upgrade Program was a 24-month loan: you owned the phone at the end, and AppleCare was financed into it. Apple Upgrade is a lease from Klarna: you own nothing unless you pay the buyout, AppleCare is a separate purchase, and it covers iPad, Mac and Apple Watch as well as iPhone. Existing iPhone Upgrade Program loans run to the end of their 24-month term with AppleCare coverage intact.
Is Apple Upgrade lease to own?
Not by default. It is a straight lease: at the end of the term the device goes back. It becomes lease to own only if you pay the purchase option fee, the buyout, which is the retail price minus everything you have already paid. Do that and the device is yours outright.
Is the Apple Upgrade Program worth it?
For most people, no. Leasing only beats buying if the device is worth less than roughly 30% of its retail price at the end of an iPhone lease (23-31% on the 36-month Mac and iPad leases), and Apple hardware typically keeps 45-60% after two years. One path does pay: lease, then take the buyout. Payments plus the buyout fee equal the retail price, so it is 0% financing with the option to walk away.
What happens at the end of an Apple Upgrade lease?
Four paths: upgrade to a new lease and return the old device (no fee), return the device and leave (no fee), keep it by paying the purchase option fee through Klarna, or do nothing. Do nothing and the lease rolls month to month for up to six months, then Klarna charges the full purchase option fee automatically.
Can you buy out an Apple Upgrade lease?
Yes. The buyout cost, which Apple calls the purchase option fee, is the retail price at signing minus everything you have already paid, minus any remaining trade-in credit, plus tax. On a $1,099 iPhone 17 Pro after 24 months at $31.99 that is $331. Payments plus buyout always total the retail price.
What are the Apple Upgrade financing terms?
Apple Upgrade is a lease, not a loan, so there is no interest rate. You pay a fixed monthly amount for 12 or 24 months (iPhone and Apple Watch) or 24 or 36 months (iPad and Mac), with no down payment and no way to pay it off early. Monthly payments plus the buyout fee always equal the retail price. Apple’s actual financing option is Apple Card Monthly Installments at 0% APR, which ends in ownership.
Can you lease a MacBook or Mac mini with Apple Upgrade?
MacBook Air, MacBook Pro, iMac and Mac Studio can be leased on 24- or 36-month terms, from $24.99 a month for the 13-inch MacBook Air. Mac mini and MacBook Neo are not eligible, and neither is any refurbished device.
Can you trade in a device with Apple Upgrade?
Yes, at sign-up only. The trade-in credit lowers your monthly payments, and any credit left over reduces the buyout fee. It is not available on later upgrades, and if the lease rolls month to month after the term ends, the trade-in discount disappears and the monthly payment goes up.
Does Apple Upgrade require a credit check?
Yes. Klarna runs what Apple describes as a soft credit check that will not affect your score. Enrollment needs your legal name, date of birth, phone, email, billing address and Social Security number. Each extra device needs its own application, and upgrades need fresh approval. There is no no-credit-check option; approval is Klarna’s call.
Is Apple Upgrade available outside the US?
No. It is US-only, with US territories excluded, and not offered in Canada, the UK or anywhere else. You need to be a US resident aged 18 or over with a US credit or debit card (no prepaid cards) and an Apple ID. A leased iPhone must be on AT&T, T-Mobile or Verizon at enrollment; iPad, Mac and Apple Watch need no carrier. It is also not offered through Apple’s employee, corporate, education, government or veterans purchase programs.
Does an Apple Upgrade lease include AppleCare?
No. AppleCare is billed separately by Apple, not Klarna. You have 60 days from enrollment to add it, or you can cover the leased device with an AppleCare One subscription. Every device still carries the standard one-year limited warranty.
Can you cancel Apple Upgrade early?
Only at a cost. Within 14 days of receiving the device you can return it and the lease is canceled. After that, the early termination fee equals all remaining payments through the end of the initial term, plus tax, and you still return the device. Canceling never saves money.
Do Apple Upgrade lease payments earn Apple Card Daily Cash?
Yes: 3% Daily Cash on lease payments, the same as on a purchase. Klarna does not accept Apple Pay, PayPal, American Express, UnionPay, or cards issued by Chase or Capital One, but the Apple Card works as a regular Mastercard.