A COBRA cost calculator helps you understand the true monthly cost of continuing your employer health insurance after job loss or a qualifying event — and compare it to ACA marketplace alternatives. Because COBRA requires you to pay 100% of the premium (plus 2%), the cost can be surprising. This tool shows you your options side by side.
Current Employer Plan
Check your benefits statement for the full premium, not just your paycheck deduction
Average employer pays ~70-80% for single coverage, less for family
Household Info (for ACA Subsidy)
Use projected income for the year you need coverage
Affects Medicaid eligibility threshold
COBRA Continuation Coverage
ACA Marketplace Estimate
Plan Details Comparison
How to Use the COBRA Cost Calculator
When you lose employer health coverage, you have two main options: elect COBRA continuation coverage to keep your existing plan, or enroll in an ACA marketplace plan during your Special Enrollment Period. The right choice depends on your income, health needs, and how long you expect to be without employer coverage.
Step 1: Find Your Total Plan Premium
The most important — and often overlooked — number is the total monthly premium, not just your paycheck deduction. Your employer has been paying a portion of the premium you never saw. Check your benefits portal, HR system, or Summary of Benefits for the full employer + employee premium. On average, employers cover about 70% of the premium for employee-only coverage and somewhat less for family plans.
Step 2: Understand What COBRA Costs
Your COBRA premium is 102% of the total monthly premium (100% + 2% administrative fee). If your employer was paying $840/month and you were paying $360/month, your COBRA cost would be $1,200 × 1.02 = $1,224/month — regardless of how much you paid before. This is why COBRA often feels like a shock: you're seeing the true cost of your coverage for the first time.
Step 3: Enter Your Household Info for ACA Estimates
ACA premium tax credits are based on your modified adjusted gross income (MAGI) relative to the federal poverty level (FPL) for your household size. Enter your projected income for the coverage year — use the income you expect to earn, not your previous year's income. If your income is below 138% of FPL and you live in a Medicaid expansion state, you may qualify for Medicaid at little or no cost.
Step 4: Compare Total Costs
The calculator shows you both the monthly cost and the total cost over your selected coverage period. If you expect to find a new job in a few months, even a high COBRA premium may be worthwhile to keep your doctors and minimize transitions. If you'll be uninsured for a longer period or qualify for substantial ACA subsidies, a marketplace plan often offers better value. Consider your expected healthcare usage and whether your current providers are in-network on marketplace plans in your area.
Step 5: Act Within Your 60-Day Window
You have 60 days from the loss of coverage event to elect COBRA and 60 days to enroll in a marketplace plan under your Special Enrollment Period. These windows can overlap. If you're unsure, you can elect COBRA first (your COBRA coverage is retroactive to the date of coverage loss) and then switch to a marketplace plan before your SEP expires — but you'll need to pay the COBRA premiums for any months you use it before switching.
FAQ
Is this COBRA cost calculator free?
Yes, this COBRA calculator is completely free with no signup, no fees, and no usage limits. All calculations run locally in your browser — your income and insurance data is never sent to any server and stays completely private.
What is COBRA insurance?
COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that lets you keep your employer-sponsored health insurance for up to 18 months after losing your job or experiencing another qualifying event (like reduced hours). You must pay the full premium — including the portion your employer used to pay — plus a 2% administrative fee.
How is COBRA premium calculated?
Your COBRA premium is 102% of the total monthly premium your employer pays for the plan. This includes both your employee contribution and your employer's contribution (which you were not paying before). For example, if the total plan premium is $600/month and you were only paying $150, your COBRA cost would be $600 × 1.02 = $612/month.
How long can I stay on COBRA?
Most people qualify for up to 18 months of COBRA continuation coverage. If you become disabled within the first 60 days of COBRA, you can extend to 29 months. Certain qualifying events (like death of the employee or divorce) can extend coverage to 36 months for dependents.
Can I get ACA subsidies as an alternative to COBRA?
Yes. Losing job-based health coverage is a qualifying life event that gives you a 60-day special enrollment period to join an ACA marketplace plan. If your household income is between 100% and 400% of the federal poverty level (FPL), you may qualify for premium tax credits that significantly reduce your monthly cost. Higher incomes may still qualify for subsidies through the enhanced credit provisions.
When should I choose COBRA over a marketplace plan?
COBRA is often better if your employer plan has excellent in-network providers, low out-of-pocket costs, and you expect to return to employer coverage soon. Marketplace plans may be better if your income qualifies for subsidies that make premiums very low, or if you're unlikely to return to employer coverage quickly. Always compare the total cost including deductibles and out-of-pocket maximums, not just the monthly premium.
What happens if I miss COBRA enrollment or payments?
You have 60 days from the notice date to elect COBRA coverage. If you miss this window, you lose COBRA eligibility and will not be reinstated. Once enrolled, you have a 30-day grace period for premium payments, but coverage can be terminated for non-payment after the grace period ends. Plan payments carefully — retroactive termination can create coverage gaps.
Is this calculator a substitute for official guidance?
No. This tool provides estimates for planning purposes only. ACA subsidies are calculated based on your official tax return income, household size, state, and plan selection. For accurate subsidy amounts, use the official Healthcare.gov marketplace tool or consult a licensed health insurance broker. Subsidy amounts change annually.