About the Retirement Healthcare Cost Calculator
This retirement healthcare cost calculator projects what you will spend on health insurance and medical bills from the day you retire until your planning age. It splits retirement into two phases: the years before 65, when you need private, ACA marketplace or retiree coverage, and the Medicare years, when you pay Part B, a Part D drug plan and usually a Medigap or Medicare Advantage premium, plus deductibles, copays and uncovered care.
It is meant for people planning an early retirement who need to budget for the gap before Medicare, couples estimating a lifetime health budget, and anyone deciding how much to set aside in an HSA. Every cost is entered in today’s dollars and grown at a healthcare inflation rate you choose; the calculator then discounts the stream at your expected return to show the lump sum needed at retirement.
The default Part B premium is the 2026 standard amount of $202.90 a month set by CMS; higher earners pay more through IRMAA surcharges, so enter your own figure if that applies. Other defaults are placeholders — replace them with quotes for your area. Long-term care (nursing home or extended home care) is not included and is usually planned separately.
With the default inputs, the total healthcare cost in retirement is $615,891.78. Change any value above to recalculate instantly.
How to use the retirement healthcare cost calculator
- 1Enter your current age, retirement age and the age you want to plan to.
- 2Enter a pre-Medicare premium quote and expected out-of-pocket costs if you retire before 65.
- 3Check the Medicare Part B, Medigap or Advantage and Part D premiums for your situation.
- 4Choose a healthcare inflation rate and the return your savings will earn.
- 5Use the savings-needed figure to set an HSA or dedicated health-fund target.
Formula and method
For each year from retirement to your plan-to age, the calculator picks the pre-Medicare costs (premium × 12 + out-of-pocket) before 65 and the Medicare costs ((Part B + Medigap/Advantage + Part D) × 12 + out-of-pocket) from 65 on. Because the inputs are in today’s dollars, each year’s cost is grown by the healthcare inflation rate i for the number of years from now, and doubled when two people are covered.
The total is the simple sum of those future-dollar costs. The savings needed at retirement discounts each year back to your retirement date at your expected return r, which is the lump sum that would fund every bill if invested at that rate; the present value today discounts all the way back to your current age. Medicare is assumed to start exactly at 65 for everyone covered.
- i
- Healthcare inflation rate
- r
- Expected investment return used to discount future costs
- people
- 1 or 2 people covered
Worked examples
Single early retiree at 62, planning to 90
Today’s $13,800 of pre-Medicare costs ($900 × 12 + $3,000) inflates at 5% for 7 years to $19,418 at 62. Three pre-Medicare years total about $61,215, then 25 Medicare years add about $554,677 in future dollars, for roughly $615,892 overall. Discounted back to 62 at 5%, that needs about $309,238 at retirement.
Couple retiring at 65 with no inflation
Each person pays ($202.90 + $180 + $45) × 12 = $5,134.80 in premiums plus $2,000 out-of-pocket, or $7,134.80 a year, so the couple pays $14,269.60. Over 25 years from 65 to 90 that totals $356,740; with a 0% return the savings needed equal the total.
Retiring at 67 with 3% inflation
With Medicare from day one, the $7,134.80 of today’s annual cost grows 3% a year for seven years to about $8,775 at 67, and 25 years of rising costs add up to about $319,927 — or about $195,832 set aside at 67 if it earns 4%.
Frequently asked questions
How much does healthcare cost in retirement?+
It depends heavily on when you retire, your health, your coverage choices and your income. Medicare premiums alone are $202.90 a month for standard Part B in 2026 plus Part D and any Medigap or Advantage premium; out-of-pocket costs and pre-65 coverage come on top. Enter your own quotes for a personal estimate.
What is the Medicare Part B premium for 2026?+
The standard 2026 Part B premium is $202.90 a month, and the annual Part B deductible is $283 (CMS). Individuals and couples with higher modified adjusted gross income pay more through income-related monthly adjustment amounts (IRMAA).
How do I pay for health insurance if I retire before 65?+
Common options are an ACA marketplace plan (premium tax credits depend on your income), COBRA from your former employer for up to 18 months, a spouse’s employer plan, or retiree coverage. Managing taxable income in early retirement can significantly lower marketplace premiums.
What inflation rate should I use for healthcare?+
Healthcare costs have historically risen faster than general inflation. Many planners test a range such as 4% to 6% a year; try a few rates to see how sensitive your plan is.
Does Medicare cover long-term care?+
No. Medicare covers only limited skilled nursing and home health care after a qualifying hospital stay, not long-term custodial care. Long-term care is usually funded through savings, long-term care insurance or, for those with few assets, Medicaid.
Can I use an HSA for Medicare premiums?+
Yes. After 65 you can use HSA funds tax-free for Medicare Part B, Part D and Medicare Advantage premiums and for out-of-pocket costs, but not for Medigap premiums. You can’t contribute to an HSA once enrolled in Medicare.
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.