myUSFinance

1. Enter your Age — This value represents your age
2. Enter your Coverage Type — This value represents your coverage type
3. Enter your State / Location — This value represents your state / location
4. Enter your Annual Deductible ($) — This value represents your annual deductible
5. Click Calculate — Review your results in the output section below the form. The calculator instantly computes all values based on your inputs.
6. Adjust and Compare — Modify any input to see how changes affect the result. Try different scenarios to find the optimal approach for your situation.

All calculations are performed instantly in your browser. Your data is never sent to any server or stored anywhere — your financial information remains completely private.

Where:

• Monthly Premium — The monthly payment to maintain insurance coverage
• Deductible — Amount paid before insurance begins covering costs
• Coinsurance — Your percentage share of costs after meeting the deductible (typically 20-40%)
• Out-of-Pocket Maximum — The most you pay in a year before insurance covers 100% ($9,450 individual limit in 2024)

Worked Example

Bronze plan: $350/month premium, $6,500 deductible, 40% coinsurance, $9,450 max OOP. With $15,000 in medical bills: Total = ($350 × 12) + $6,500 + ($15,000 - $6,500) × 0.40 = $4,200 + $6,500 + $3,400 = $14,100. Gold plan with same bills might cost: ($550 × 12) + $1,500 + ($15,000 - $1,500) × 0.20 = $10,900.

Limitations and Assumptions

The ACA limits the out-of-pocket maximum to $9,450 (individual) and $18,900 (family) for 2024. Preventive services must be covered at no cost regardless of deductible. Premium tax credits are available for marketplace plans based on income. Compare total expected costs (premiums + out-of-pocket) across plan tiers for your expected healthcare utilization.

Understanding the following key concepts will help you interpret your results and make better financial decisions:

• Principal — The initial amount of money involved in the calculation, whether it is a starting balance, loan amount, or investment.
• Interest Rate — The percentage charged or earned on the principal amount, typically expressed as an annual rate (APR). This rate determines how quickly your money grows or how much borrowing costs.
• Compounding — The process of earning interest on previously earned interest. More frequent compounding (daily vs. monthly vs. annually) results in higher effective returns or costs.
• Time Horizon — The length of time over which the calculation applies. Longer time horizons amplify the effects of compounding and small differences in rates.
• Present Value vs. Future Value — Present value is what money is worth today; future value is what it will be worth at a specific point in the future, accounting for growth or inflation.

These concepts form the foundation of virtually all financial calculations. Understanding how they interact helps you evaluate any financial product or decision with confidence.

Let's compare insurance options for a practical scenario.

Scenario: The Johnson family is reviewing their insurance coverage. They want to understand the cost implications of different coverage levels and deductibles.

Option A — Lower Deductible: $500 deductible with a $2,400 annual premium. If they file one claim of $3,000 during the year, their out-of-pocket cost is $500 + $2,400 = $2,900.

Option B — Higher Deductible: $1,500 deductible with a $1,800 annual premium. With the same $3,000 claim, their out-of-pocket cost is $1,500 + $1,800 = $3,300.

In a year with a claim, Option A saves $400. But in a year without claims, Option B saves $600 in premiums. Since most families file claims infrequently, Option B often results in lower total costs over time. Over five years with one claim, Option B saves $2,000 net ($600 × 5 years - $400 claim difference = $2,600 savings).

The optimal deductible depends on your emergency fund and risk tolerance. This calculator helps you model these scenarios with your specific numbers.