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What is effective price?
Effective price is the average monthly cost you actually pay over the entire contract period, taking into account both the promotional and standard pricing periods.
Formula
(promo months x promo price + remaining months x standard price) / total contract months
Example
Promotional price: 100 MDL/mo for 12 months. Standard price: 200 MDL/mo. Contract: 24 months.
(12 × 100 + 12 × 200) / 24 = 3600 / 24 = 150 MDL/mo
Tip
Promotional prices attract customers, but you are locked into a contract that includes months at the higher standard rate. Comparing effective prices gives you a fair picture of the actual cost across providers.