COBRA Calculator

Calculate COBRA continuation cost vs marketplace alternatives. See total cost for 18-36 months.
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%
COBRA Duration
$

Monthly COBRA Cost

$612.00

Total (18 mo)

$11,016.00

Cheaper Option

Marketplace

COBRA Cost Breakdown

Full Monthly Premium$600.00
COBRA Admin Fee (2%)+ $12.00
Monthly COBRA Cost$612.00
You Used to Pay$150.00
Monthly Increase+ $462.00
Total COBRA (18 months)$11,016.00

COBRA vs Marketplace

Monthly COBRA$612.00
Monthly Marketplace$400.00
Monthly Difference$212.00
Total COBRA (18 mo)$11,016.00
Total Marketplace (18 mo)$7,200.00
Total Savings with Marketplace$3,816.00

COBRA makes sense when: You are mid-treatment, your plan has a better network, or you have already met your deductible.

Marketplace makes sense when: You qualify for ACA subsidies (income below 400% FPL), you want lower premiums, or you need long-term coverage.

ACA Subsidy: If your household income is under ~$60K (single) or ~$124K (family of 4), you may qualify for premium tax credits on the marketplace.

Use the COBRA Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

This calculator helps you compare the cost of COBRA continuation coverage against marketplace health insurance plans, specifically for the 18 to 36-month period following a qualifying event. Understanding these costs is crucial for making informed decisions about your healthcare, especially with projected 2026 COBRA premiums averaging around $700 for individuals and $2,000 for families, before administrative fees. This tool empowers you to see the long-term financial implications of each choice, factoring in potential marketplace subsidies.

Our methodology calculates COBRA costs by applying the statutory 102% premium (100% of the employer's cost + 2% administrative fee) to your reported prior employer-sponsored plan premium. For marketplace plans, it estimates premiums based on average 2026 silver plan costs for your age and location, then subtracts estimated Advanced Premium Tax Credits (APTCs) based on your projected household income relative to the Federal Poverty Level (FPL). The calculator then projects these costs over 18, 24, and 36 months for a comprehensive comparison.

When using this calculator, remember that actual marketplace premiums and subsidies can vary significantly based on your specific location, income, and chosen plan. Don't forget to factor in potential out-of-pocket maximums and deductibles for both COBRA and marketplace plans, as these can significantly impact your total healthcare costs. A common mistake is underestimating the administrative fee for COBRA, which can add hundreds of dollars over time.

Example: Individual COBRA vs. Marketplace for 18 Months

  1. 1 Step 1: Input your prior monthly employer-sponsored premium of $650 (individual), an annual household income of $45,000, and a zip code in a medium-cost area.
  2. 2 Step 2: The calculator determines your monthly COBRA cost will be $663 ($650 x 1.02). It then estimates a marketplace silver plan premium of $750/month, with an estimated APTC of $200 based on your income and FPL. Your net marketplace premium would be $550/month.
  3. 3 Step 3: Over 18 months, your COBRA cost is $11,934 ($663 x 18). Your marketplace cost is $9,900 ($550 x 18).
  4. 4 Step 4: In this scenario, opting for a marketplace plan would save you $2,034 over 18 months compared to continuing COBRA, demonstrating the potential financial advantage of exploring marketplace alternatives.

Source: HealthCare.gov · Last updated: April 2026

Frequently Asked Questions

How much does COBRA cost per month?
COBRA costs the full premium (employer plus employee share) plus a 2% administrative fee. The average monthly COBRA cost in 2026 is approximately $700-750 for individual coverage and $1,900-2,100 for family coverage.
How long can I stay on COBRA?
COBRA generally lasts 18 months after job loss or reduction in hours. It extends to 36 months for certain qualifying events like divorce or a dependent aging out. Disability during the first 60 days can also extend coverage to 29 months.
Is COBRA cheaper than marketplace insurance?
Usually no. ACA marketplace plans with premium tax credits are often significantly cheaper than COBRA, especially if your income dropped after job loss. Always compare marketplace options at healthcare.gov before electing COBRA.

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