Estimate annual premiums, employer contributions, and tax savings. Model expected claims under health plan structures. See which benefit setup protects your money best today.
| Scenario Item | Example Value |
|---|---|
| Annual Salary | $70,000.00 |
| Combined Tax Rate | 24.65% |
| Expected Medical Expenses | $4,500.00 |
| PPO Annual Premium | $3,600.00 |
| HDHP Annual Premium | $2,400.00 |
| FSA Contribution | $2,500.00 |
| HSA Employee Contribution | $3,000.00 |
| HSA Employer Contribution | $1,000.00 |
| PPO Only Net Annual Cost | $5,700.00 |
| FSA + PPO Net Annual Cost | $5,083.75 |
| HSA + HDHP Net Annual Cost | $3,960.50 |
PPO Medical Cost = lesser of max out-of-pocket or deductible plus coinsurance on expenses above the deductible.
PPO Only Net Cost = annual PPO premiums + PPO medical cost.
FSA Tax Savings = FSA contribution × combined tax rate.
FSA Forfeiture = max of 0 and FSA contribution minus PPO medical cost minus allowed carryover.
FSA + PPO Net Cost = PPO premiums + PPO medical cost + FSA forfeiture − FSA tax savings.
HSA Tax Savings = HSA employee contribution × combined tax rate.
HSA Retained Balance = total HSA funding − HSA amount applied to current expenses.
HSA + HDHP Net Cost = HDHP premiums + HDHP medical cost − employer HSA dollars applied − HSA tax savings.
The retained HSA balance is shown separately because unused HSA funds stay with you and can support future healthcare spending.
Health plan selection affects payroll deductions, tax savings, and total yearly risk. Many employees compare only premiums. That misses the bigger picture. A strong decision should include deductibles, coinsurance, employer funding, and likely healthcare use. This calculator brings those moving parts together.
An FSA lets you contribute pre-tax dollars for eligible healthcare costs. That can reduce taxable income. It often works well with a traditional PPO. The tradeoff is forfeiture risk. If you elect too much and do not spend it, part of that balance may be lost. That makes planning important.
An HSA is different. It usually pairs with a qualified high deductible health plan. Employee contributions lower taxable income. Employer contributions improve value even more. Unused funds stay with you. That long-term ownership can make the HSA approach attractive for employees who want tax efficiency and future flexibility.
A PPO often gives broader access and lower point-of-care friction. Deductibles may be lower than an HDHP. Cost predictability can feel better for families who use care often. The downside is that premiums may be higher. Without an account strategy, you also miss potential tax advantages.
The best plan is not always the one with the lowest premium. It is the option with the best total value for your situation. That includes annual premiums, expected out-of-pocket cost, tax savings, employer HSA money, and possible FSA forfeiture. Cash flow matters too. Some employees prefer lower monthly deductions. Others prefer stronger tax benefits.
Use this calculator before open enrollment or after a job change. Enter realistic expense estimates. Then test low, moderate, and high healthcare scenarios. That stress test can reveal which employee benefits choice fits your budget, risk tolerance, and long-term savings goals.
No. An HSA can be stronger for tax efficiency and long-term savings, but only if you are enrolled in a qualified high deductible health plan. An FSA may fit better when you expect steady medical expenses and want pre-tax reimbursement with a PPO.
Unused HSA funds are still your money. They can stay invested or saved for later healthcare costs. Because of that, retained HSA dollars are not treated as lost spending in the comparison table.
Most FSAs follow use-it-or-lose-it rules, although some plans allow limited carryover. If you contribute more than you spend and exceed the carryover limit, the extra amount may be forfeited.
This model assumes no FSA or HSA tax shelter is used with the PPO only option. That makes it a clean baseline for comparison against account-based strategies.
Use expected eligible medical, prescription, and other reimbursable healthcare spending for the plan year. A realistic estimate improves the model and helps you avoid overfunding an FSA.
Yes. Employer HSA funding can materially lower your effective healthcare cost. It often changes the outcome, especially when the HDHP premium is already lower than the PPO premium.
No. It is a decision-support calculator. Always check your official summary of benefits, payroll deduction details, eligibility rules, and employer contribution terms before making your final election.
Run the calculator several times. Try low, medium, and high medical expense assumptions. Then compare net annual cost, monthly impact, forfeiture, and retained HSA value across those scenarios.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.