HSA Break-Even Calculator

Compare HDHP+HSA vs traditional plan at different medical spending levels.

By Konstantin Iakovlev · Updated September 2026 · Source: IRS Publication 969 — Health Savings Accounts and Other Tax-Favored Health Plans

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Winner

HDHP + HSA

HSA Tax Savings

$1,080.00

Cost at Different Spending

$0 spendingHDHP: $2,520.00 vs Trad: $6,000.00
$1000 spendingHDHP: $3,520.00 vs Trad: $6,600.00
$2000 spendingHDHP: $4,520.00 vs Trad: $6,800.00
$3000 spendingHDHP: $5,520.00 vs Trad: $7,000.00
$5000 spendingHDHP: $5,920.00 vs Trad: $7,400.00
$8000 spendingHDHP: $5,920.00 vs Trad: $8,000.00

Use the HSA Break-Even 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

A Health Savings Account (HSA) comes with tax advantages, but pairing one with a high-deductible plan also exposes you to more upfront medical spending. This tool compares one year of costs under a high-deductible plan with an HSA against a traditional plan, at the medical spending you expect and at several other spending levels, so you can see where the balance tips.

Under the hood, both monthly premiums are multiplied by 12, and your HSA contributions are credited with a flat 30% tax saving (monthly contribution × 12 × 30%). Out-of-pocket costs come from fixed plan assumptions rather than inputs: on the high-deductible health plan (HDHP) you pay medical bills up to $3,400 a year, and the traditional plan charges a $500 deductible and then 20% coinsurance. The cost table shows each plan's net yearly cost at $0, $1,000, $2,000, $3,000, $5,000 and $8,000 of medical spending.

The comparison covers a single year and leaves out investment growth inside the HSA, which can add to its long-term value because earnings in the account are tax free and money you don't spend stays in the account (IRS Publication 969). Underestimating your medical spending cuts the other way, so check the higher-spending rows of the table before you decide.

Example: $300 vs. $500 Monthly Premiums with a $300 Monthly HSA Contribution

  1. 1 Inputs: HDHP premium $300 a month, traditional plan premium $500 a month, HSA contribution $300 a month and expected medical spending of $2,000 a year.
  2. 2 Premiums: $300 × 12 = $3,600 for the HDHP and $500 × 12 = $6,000 for the traditional plan. HSA tax savings: $300 × 12 = $3,600 contributed × 30% = $1,080. The $3,600 fits under the 2026 self-only HSA limit of $4,400.
  3. 3 At $2,000 of medical spending: HDHP $3,600 + $2,000 − $1,080 = $4,520; traditional $6,000 + $500 deductible + 20% of the remaining $1,500 ($300) = $6,800. The HDHP with HSA comes out $2,280 ahead, and the calculator names it the winner.
  4. 4 With these premiums the table shows the HDHP cheaper at every spending level listed, from $2,520 vs. $6,000 at $0 to $5,920 vs. $8,000 at $8,000. The calculator does not model a multi-year break-even or investment growth; unspent HSA money simply stays in the account.

Source: IRS Publication 969 — Health Savings Accounts and Other Tax-Favored Health Plans · Last updated: September 2026

Frequently Asked Questions

When does an HDHP with HSA save more than a traditional plan?
The break-even point depends on your medical spending. If your annual out-of-pocket costs are low to moderate, the HDHP's lower premiums plus HSA tax savings usually win. Traditional plans become cheaper when you have frequent medical visits or expensive prescriptions.
What is the 2026 HSA catch-up contribution for age 55+?
The 2026 HSA contribution limits are $4,400 for self-only coverage and $8,750 for family coverage. If you are 55 or older, you can contribute an additional $1,000 catch-up contribution.
Can I invest my HSA funds?
Yes. Most HSA providers allow you to invest funds above a certain cash threshold in mutual funds or other investments. Invested HSA funds grow tax-free, and withdrawals for qualified medical expenses are also tax-free, making HSAs a powerful triple-tax-advantaged account.

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