If possible, can you share the reason for paying off the tab? If the reason was to get a new phone, you might have to pay the “tab bonus” also https://www.koodomobile.com/en/help/Tab-bonus

Paying off the tab alone, should not affect your current credit with Koodo.

I’m wondering if it might be cheaper to just pay the tab off early. If my computations are correct then paying off the tab would be:

Tab balance = $690

$55-$10 for 15 months + taxes = $50.85 x (15 months) = $762.75

$55 for the remaining 9 months  + taxes = $62.15 x (9 months) = $559.35

a total of $2,012.1

While not paying off the tab right away would be:

$55-$10 for 15 months + $30/month + taxes = $84.75 x (15 months) = $1271.25

$55 for the remaining 9 months + $30/month for the phone + taxes = $96.05 x (9 months) = $864.45

bringing the total to $2135.7

So it was the tax that you think you would save money.

Unfortunately, Koodo wouldn’t allow it. If you pay off the Tab balance now, they will put the $690 + TAX on your next bill. There isn’t a difference between 2 options above.

Anyway, If you keep to pay the Tab balance monthly, you actually can save money as they don’t charge interest on the Tab amount.

It does not work that way, since the credits already include the taxes. Your calculation is on the premise that it does not include the applicable taxes charged in your province. Either way, it will amount to the same thing. https://www.koodomobile.com/en/help/billcredits

You’re forgetting taxes on the tab balance and since the first month has come out of the tab balance already you’re a little short there as well.

Tab would’ve started at $720 * 13% tax = $813.60

$813.60 - $690 = $123.60 (which is the difference between your two totals there)

It will be the same cost either way whether you pay the tab off now or let it go for the full 24 months.