About the COBRA Cost Calculator
This COBRA cost calculator shows what keeping your employer health plan will cost after you leave a job. Under federal COBRA rules the plan can charge you the full premium — your old payroll deduction plus the share your employer used to pay — and add up to 2% for administration, for a maximum of 102% of the plan’s cost. Enter both shares from your pay stub or benefits portal to see your new monthly bill and the total for the months you expect to need coverage.
It is meant for anyone weighing a COBRA election notice: people between jobs, early retirees bridging to Medicare and families covering a spouse or children after a divorce or job loss. Add the monthly premium of a Marketplace plan (after any premium tax credit) to see which option is cheaper over the same period.
If a qualified beneficiary is disabled and gets the 11-month disability extension, the plan may charge up to 150% of the premium for months 19 through 29; switch that option on to include it. The comparison looks only at premiums — check deductibles, networks and how much of this year’s deductible you have already met before you decide.
With the default inputs, the monthly cobra premium is $918.00. Change any value above to recalculate instantly.
How to use the cobra cost calculator
- 1Find your monthly payroll deduction for health coverage on a recent pay stub.
- 2Find your employer’s monthly contribution on your benefits statement or W-2 code DD (÷ 12).
- 3Enter how many months you expect to need COBRA, up to 18 for job loss.
- 4Switch on the disability extension if it applies.
- 5Enter a Marketplace plan’s monthly premium after subsidy to compare total costs.
Formula and method
COBRA lets the plan charge the full applicable premium for the coverage you keep — the part you paid and the part your employer paid — plus an administrative charge, capped at 102% of that premium (29 U.S.C. §1162(3)). The calculator adds your contribution and your employer’s, applies the fee, and multiplies by the number of months you expect to keep the coverage.
When the disability extension applies, the cap rises to 150% of the premium for months 19 through 29, so those months are priced at 1.5 × the full premium. The Marketplace comparison simply multiplies the plan’s monthly premium (after any premium tax credit) by the same number of months; out-of-pocket costs are not included.
- Employee share
- Your current monthly payroll contribution
- Employer share
- What your employer contributes each month
- Admin fee
- Up to 2% (up to 50% extra in disability-extension months)
Worked examples
Single coverage for 18 months vs a $550 Marketplace plan
The full premium is $250 + $650 = $900, and the 2% fee brings it to $918 a month — $668 more than the old payroll deduction. Over 18 months that is $16,524, versus $9,900 for the Marketplace plan, a $6,624 difference in premiums.
Family coverage with a 29-month disability extension
The first 18 months cost $1,200 × 1.02 = $1,224 each ($22,032). Months 19–29 may be charged at 150%, or $1,800 a month for 11 months ($19,800), for a total of $41,832.
Short 4-month bridge to a new job
A $700 premium plus 2% is $714 a month, or $2,856 for four months. The Marketplace plan would cost $2,600, but if you have already met this year’s deductible on the employer plan, COBRA may still be the better deal for a short gap.
Frequently asked questions
How much does COBRA cost?+
COBRA usually costs the full premium of your employer plan — your share plus the employer’s share — plus a 2% administrative fee, so up to 102% of the plan cost. Because employers usually pay most of the premium, the bill can be three to five times what you paid through payroll.
How long can I stay on COBRA?+
After job loss or reduced hours, COBRA generally lasts up to 18 months. It can be extended to 29 months if a qualified beneficiary is disabled, and spouses and dependents can get up to 36 months after events such as divorce or the employee’s death.
Is COBRA or a Marketplace plan cheaper?+
Marketplace plans are often cheaper if you qualify for a premium tax credit based on your expected income. COBRA can still make sense for a short gap, if you have already met your deductible, or to keep the same doctors and network.
Can I switch from COBRA to the Marketplace?+
Losing job-based coverage gives you a 60-day Special Enrollment Period. Voluntarily dropping COBRA midway does not usually qualify you for a Special Enrollment Period, so compare both options before your election deadline or wait for open enrollment.
Why can COBRA cost 150% of the premium?+
Federal law lets plans charge up to 150% of the premium for months 19 through 29 when coverage is extended because a qualified beneficiary is disabled. In the first 18 months the limit is 102%.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.