You can lease an iPhone through Klarna now - but should you? I did the math

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Apple Upgrade , the company's new device leasing program, allows customers to lease devices through the buy-now, pay-later giant Klarna for 12-, 24-, or 36-month periods before upgrading.

Apple Upgrade replaces the iPhone Upgrade Program , a 24-month financing plan, and lets customers forgo bundled AppleCare and complete only a soft credit check to determine lease eligibility. Instead of paying off a device you own, the new program allows customers to lease iPads, Macs, and Apple Watches.

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Now, you have several options to buy new gear through Apple: leasing via Apple Upgrade with Klarna, financing through Apple or a mobile carrier, or paying the full price for their device up front.

Which option makes the most sense? The answer depends on your goals -- let's break them down.

Like the original iPhone Upgrade Program, Apple Upgrade is ideal for people who want to upgrade their iPhone to the latest generation each year, and are comfortable with leasing it -- not owning it outright. Apple Upgrade now extends this option to those who want a new Apple Watch every one to two years or a new Mac or iPad every two to three years.

If you're more concerned with getting a new device every few years than owning it, the leasing program could be up your alley.

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The Apple Upgrade program is the most affordable way to frequently upgrade your iPhone. For example, leasing a $1,099 iPhone 17 Pro with 256GB is $45.99/month for 12 months. After paying $551.88 over the 12-month period, you can upgrade. So, you pay for 50% of the phone's retail price, then you can get a new phone. If you enter Apple Upgrade in September, when a new iPhone launches, you'll be on schedule to upgrade when the next one comes out.

Over a 24-month leasing plan, you'll pay $31.99/month, totaling $767.76, or 70% of the phone's retail price. You must have a mobile carrier plan to lease an iPhone through Apple Upgrade, but your phone will be unlocked, meaning you can switch carriers throughout your Apple Upgrade leasing period.

If you trade in a current device, you may shave off the price of your initial lease agreement, but you'll enter a new agreement once you upgrade your device -- no more trade-in credits.