Deductible vs Premium Calculator
A lower deductible usually means a higher premium, and vice versa. The right choice depends on how much you expect to claim. This calculator compares two plans by adding each premium to the out-of-pocket portion of an expected claim, then shows which plan costs less and the breakeven claim amount at which they tie. Use it to choose between a low-deductible and a high-deductible plan.
Comparison formula
Out-of-pocket = min(expected claim, deductible)
Plan total = annual premium + out-of-pocket
Breakeven claim = premium A - premium B + deductible B, when within both deductibles
The breakeven is the claim amount at which the two plan totals are equal, valid while the claim does not exceed either deductible. Above the higher deductible, the premium difference alone decides.
Reading the result
- Each plan total is its premium plus the deductible portion you would pay on the expected claim.
- The cheaper plan is the lower of the two totals at your expected claim.
- The breakeven claim is where the totals tie; compare it to your likely claims.
- Add coinsurance and out-of-pocket maximums for a precise comparison.
Deductible vs premium: frequently asked questions
How do I compare a low and a high deductible plan?
Add each plan's annual premium to the out-of-pocket cost you would actually pay on a claim, which is the smaller of your claim amount and the plan's deductible. The plan with the lower total annual cost wins for that claim level. A higher deductible usually has a lower premium, so the better choice depends on how much you expect to claim.
What is the breakeven claim amount?
The breakeven is the claim level at which both plans cost the same in total. Below it, the low-premium high-deductible plan is cheaper; above it, the low-deductible plan is cheaper. This calculator computes the breakeven so you can judge it against your likely claims.
Does this account for coinsurance or out-of-pocket maximums?
No. This is a simplified comparison using premium plus the deductible portion of a claim. Real plans add coinsurance, copays, and out-of-pocket maximums. Treat the result as a first-pass comparison and check the full plan documents for a precise figure.
Should I always pick the lower total cost?
Cost is one factor. A high-deductible plan exposes you to a larger bill in a bad year, which matters if you could not easily cover it. Weigh the expected saving against the risk you can absorb, not just the average outcome.
Sources and method
- The comparison adds premium to the deductible-capped claim portion for each plan, a direct cost identity. All inputs are user-editable; no figure is hardcoded.
- U.S. Centers for Medicare and Medicaid Services: deductible definition.
Reviewed by the CalculatorHub team, edited by James Graham, 19 June 2026. See our methodology.