What is COBRA Cost Calculator?
A COBRA Cost Calculator computes cobra cost from the inputs you provide. It applies the standard formula to the values you enter and returns the result instantly, without sending any data to a server. Full premium plus 2% admin fee.
COBRA Cost Calculator
Estimate your monthly COBRA continuation premium and compare to ACA marketplace plans.
TLDR
COBRA lets you keep your old employer's health plan after leaving, but you now pay the full premium (your share + employer's share) plus 2% admin. Family COBRA is often $1,800-$2,400 / mo. ACA marketplace plans with subsidies are usually cheaper unless you have specific provider needs.
How to use this calculator
- Enter your inputs. Each field is labeled with its unit (dollars, percent, age, etc.).
- Read the result instantly. Numbers update as you type - no submit button.
- Adjust to test sensitivity. Change one input at a time to see what moves the result most.
- Cross-check the formula in the section below. Calculator math should match the published formula.
- Copy or screenshot the result for later. The site does not save anything; close the tab and inputs are gone.
About this tool + formula
This calculator uses real 2025-26 IRS, SSA, and CMS published values. The math runs entirely in your browser - nothing is sent to a server. The underlying formula is:
cobra_monthly = (employee_share + employer_share) * 1.02 aca_monthly_after_subsidy = max(0, min(plan_premium, AGI * applicable_pct / 12))
Sources: IRS contribution limits, SSA reduction factors, CMS Medicare premium tables, US Treasury auction yields, HHS Federal Poverty Guidelines. Numbers are refreshed annually as new figures publish.
Real-world scenarios where this calculator helps
Job loss between coverage
Recently laid off, plan ends end-of-month. COBRA bridges 18 months. Often used while job-hunting or during severance.
Mid-treatment continuity
If you are mid-cancer-treatment or pregnant, keeping the same plan means same in-network specialists. COBRA is worth it for continuity even at high cost.
Short gap before new employer plan starts
New job's plan starts in 30-60 days. COBRA for 1-2 months may be cheaper than ACA enrollment hassle.
Retirees pre-65
Bridge from age 60-65 until Medicare. Compare COBRA vs ACA marketplace - if AGI low enough for subsidy, ACA usually wins.
What this tool does
- Calculates COBRA monthly premium from full premium + 2% admin fee.
- Compares to ACA marketplace silver benchmark plan after estimated premium tax credit.
- Applies 2025 ACA subsidy schedule (ARPA / IRA enhanced through 2025).
- Uses 2025 federal poverty levels for subsidy eligibility.
- Shows total cost over your selected COBRA period.
What it does NOT handle
- Doesn't validate COBRA eligibility (must be 'qualifying event': job loss, reduced hours, divorce, death of covered employee, etc.).
- Doesn't model state continuation programs (mini-COBRA in some states extends rights to small employers).
- Doesn't account for HSA / HRA balances that may continue.
- Doesn't quote specific marketplace plans - the $800 default is a placeholder, look up the real benchmark in your state.
- Doesn't include the 2% admin fee waiver that applies during the 11-month disability extension.
Common mistakes and pitfalls
- Missing the 60-day election deadline. You have 60 days from termination of coverage to elect COBRA - after that you cannot.
- Forgetting that election is retroactive. You can wait the full 60 days, then elect COBRA only if you actually need to use it (and pay back-premium).
- Skipping the marketplace check. Job loss is a Special Enrollment Period; you can enroll in ACA outside open enrollment for 60 days.
- Letting COBRA auto-extend past 18 months without disability. Unless you qualify for the disability extension (29 months) or a second qualifying event (36), 18 months is the max.
- Forgetting your dental / vision plans usually have their own COBRA elections separate from medical.
Frequently asked questions
What is COBRA?
Federal law (1985) requiring employers with 20+ employees to offer continued group health coverage for 18 months after a 'qualifying event' (job loss, reduction in hours, divorce, etc.).
How much does COBRA cost?
Full premium - the total of what you and your employer were paying combined - plus a 2% admin fee. Typical: individual $700-$1,200 / mo, family $1,800-$2,400 / mo.
How long does COBRA last?
18 months for job loss / hour reduction. Extended to 29 months if you become disabled in the first 60 days. 36 months for divorce, death of employee, or loss of dependent status.
Can I switch to ACA instead?
Yes. Job loss triggers a 60-day Special Enrollment Period on healthcare.gov. ACA with subsidy is usually cheaper if your household income is under 400% FPL.
Does COBRA cover dental and vision?
Only if those plans were offered by your employer and you elect them. Each plan has a separate COBRA election.
Can I drop COBRA partway through?
Yes, but you cannot switch back. Drop usually triggered by getting other coverage (new employer plan, ACA, Medicare, marriage).
Are COBRA premiums tax-deductible?
Yes, as a medical expense if you itemize and total medical exceeds 7.5% of AGI. Not deductible above-the-line. Self-employed have a separate health insurance deduction that can apply.
What if I miss the 60-day window?
You lose COBRA rights. Your only options are an ACA Special Enrollment (also 60 days from coverage loss) or going uninsured until next open enrollment.