Updated April 2026 · 8 min read · How the cost actually hides — contracts, financing, activation fees, inflated rates
In home security, 'free equipment' means the cost has been moved somewhere else — not removed. Every security company has hardware to recoup. The question is which line item it shows up on. Companies that advertise 'free equipment' typically spread the cost across one or more of these four places: a monitoring contract, equipment financing, an activation or installation fee, or a higher monthly rate.
The most common method. Equipment is provided at no upfront cost, but you sign a 2–3 year monitoring agreement. If you cancel early, you pay an early termination fee — typically 75–80% of remaining contract value.
Example: ADT's professionally installed plans often include free or deeply discounted equipment on a 36-month contract. The ETF on a $49.99/month plan at month 6 can exceed $1,200.
You receive the equipment without paying upfront, but you finance it separately over 42–60 months. The monitoring service may be month-to-month, but the equipment loan runs independently.
Example: Vivint's SmartPay financing spreads equipment cost over 42–60 months through a third-party lender (typically Fortiva or Synchrony). Canceling monitoring does not cancel the financing — those payments continue. Total equipment financed is typically $1,200–$2,500 depending on sensors and cameras selected.
The equipment appears 'free' but a one-time activation or professional installation fee covers the initial hardware cost in whole or in part.
Example: ADT charges $0–$199 for activation depending on the promotion. Professional installation visits can carry labor charges of $99–$200 on top of equipment promotions.
No contract, no financing — but the monthly monitoring rate is meaningfully higher than what a self-install competitor charges for the same monitoring quality.
Example: A company offering 'free equipment' at $49.99/month versus a competitor charging $249 for a comparable starter kit at $22.99/month: over 3 years, the 'free equipment' offer costs $1,800 in monitoring alone. The kit cost was $249. You paid a $1,551 premium for 'free' hardware.
ADT and Vivint are the two brands most associated with 'free equipment' offers, and they use different methods.
Equipment is typically free or heavily discounted on a 36-month monitoring contract. Monthly rates start at $44.99–$59.99/month.
Equipment is financed separately over 42–60 months. Monitoring is technically month-to-month — but the financing obligation runs independently.
The right comparison is always total cost over 3 years — not upfront price.
3-year cost formula:
(Monthly rate × 36) + Equipment cost + Activation fees = True 3-year cost
Example A — "Free equipment" offer: $0 upfront + $49.99/month on a 36-month contract + $99 activation = $1,898 over 3 years
Example B — Self-install alternative: $249 kit upfront + $22.99/month, no contract, no activation fee = $1,076 over 3 years
The self-install alternative costs $822 less over the same period. The 'free' equipment cost more than twice as much when the monitoring premium is factored in.
Related reading: Contract Risk Index: ADT vs Vivint vs SimpliSafe vs Cove · ADT full pricing and ETF details · Vivint SmartPay financing: what it means long-term · Full monitoring plan comparison
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