Formulas and methodology

Annual premium

Annual premium = monthly premium × 12. Next-year estimate = annual premium × (1 + increase percentage ÷ 100). The formula does not account for installment charges or midyear changes.

Single-loss deductible comparison

For each plan, simplified out-of-pocket cost = minimum(eligible covered loss, deductible). Modeled annual cost = annual premium + simplified out-of-pocket cost. The tool assumes one covered loss, no coinsurance, no exclusions, and no coverage limits.

Deductible break-even

Premium savings = lower-deductible plan annual premium − higher-deductible plan annual premium. Additional deductible exposure = higher deductible − lower deductible. The calculator displays the difference between savings and additional exposure for a sufficiently large covered claim.

Coinsurance

Remaining deductible = maximum(0, annual deductible − deductible already met). Deductible portion = minimum(allowed covered charge, remaining deductible). Coinsurance portion = (allowed covered charge − deductible portion) × coinsurance percentage ÷ 100.

Estimated qualifying cost sharing = minimum(deductible portion + coinsurance portion, remaining out-of-pocket maximum). This simplified maximum treatment assumes all entered spending qualifies; actual plan rules may differ.

Life insurance needs

Simple target = maximum(0, annual income × replacement years + debts and final expenses + other goals − savings and existing coverage). The model does not discount future payments, model tax effects, or adjust for inflation.

Property gap

Simplified insurer payout = maximum(0, minimum(replacement cost, coverage limit) − deductible). Estimated uncovered amount = replacement cost − insurer payout. This assumes a full eligible loss and ignores special limits and endorsements.

Data, rounding and privacy

Inputs are calculated locally in your browser. Dollar results are rounded to cents for display. We do not collect your entries through a form or connect to insurers. Browser/device and advertising services may process technical data as described in our privacy policy.

Check your policy wording: “deductible,” “covered loss,” “allowed charge,” and “limit” are used in simplified senses and may vary across insurance products.