Inputs
Enter assumptions for costs, savings, and timeline. The layout adapts: 3 columns on large screens, 2 on medium, 1 on mobile.
Inputs (Print View)
This section appears when printing/saving as PDF.
Example Data
Use this sample to test the calculator quickly.
| Sample Input | Value | Sample Output | Value |
|---|---|---|---|
| Annual premiums today | $3,600.00 | Projected balance at retirement start | $162,000.00 |
| Annual out-of-pocket today | $1,200.00 | Total retirement healthcare spend | $420,000.00 |
| Medical inflation | 5.00% | Suggested extra monthly saving | $180.00 |
| Investment return | 6.00% | End balance after retirement | -$52,000.00 |
Formula Used
Annual healthcare cost is projected by inflating today's premiums and out-of-pocket costs: Cost(t) = Premium(t) + min(OOP(t), OOP_Max(t)).
Inflation is applied as X(t) = X(0) × (1 + i)^(t−1). During retirement, an additional multiplier is applied: RetirementCost(t) = Cost(t) × M.
Savings are projected annually with growth and contributions or withdrawals: B(t) = B(t−1) × (1 + r) + C before retirement, and B(t) = B(t−1) × (1 + r) − Spend(t) in retirement. The extra contribution is found by searching for the smallest amount that avoids a negative ending balance.
How to Use This Calculator
- Enter today's annual premiums and typical out-of-pocket spending.
- Set medical inflation and expected investment return assumptions.
- Provide your current savings balance and annual contributions.
- Choose years until retirement and years in retirement.
- Optional: add premium savings, an out-of-pocket max, and a one-time expense.
- Click Calculate to view results above the form.
- Use Download CSV for deeper analysis, or Download PDF for a shareable summary.
Key assumptions you control
This estimator starts with today’s annual premiums, typical out-of-pocket spending, and an optional out-of-pocket maximum. Medical inflation and investment return drive the long-run shape of results. Example: a 5% inflation rate doubles costs in about 15 years, while 6% returns can compound contributions meaningfully over time.
How the projection is built
Each year, costs are inflated using (1 + i)^(t−1). Out-of-pocket spending is capped by the selected maximum, then added to premiums (minus any premium savings). During accumulation years, the model applies growth to the starting balance and adds personal and employer contributions. During retirement years, the model applies growth and then subtracts the estimated annual healthcare spend. A simplified tax benefit is shown as personal contributions × marginal tax rate.
Reading the savings gap signal
Focus on two indicators: projected balance at retirement start and projected end balance after retirement spending. A negative ending balance implies a funding gap. The calculator also estimates the maximum deficit at any point, which highlights how deep the shortfall can become before the timeline ends. When the curve turns downward early in retirement, it usually indicates costs are rising faster than investment growth.
Scenario testing with realistic ranges
Run at least three cases: conservative, baseline, and optimistic. For instance, try inflation at 3%, 5%, and 7%, with returns at 3%, 6%, and 8%. Adjust the retirement cost multiplier from 1.0 to 2.0 to reflect higher utilization. If you add a one-time expense in year 8, compare how earlier saving increases resilience. Small changes matter: a 1% higher return over 20 years can lift the pre-retirement balance noticeably.
Using exports for better decisions
Download the CSV to chart balance, costs, and withdrawals in your spreadsheet, or share the PDF summary with a partner or advisor. If the model suggests an extra monthly saving amount, treat it as a planning target. Revisit inputs yearly as premiums, utilization, and market returns change. Track employer contributions separately to confirm eligibility and vesting assumptions.
FAQs
What does “retirement cost multiplier” mean?
It scales annual healthcare spending after retirement begins. Use 1.0 if costs stay similar, or higher values if premiums, utilization, or uncovered services are expected to rise in retirement.
Why is there a suggested extra monthly saving amount?
If the projection ends negative, the calculator searches for the smallest added annual contribution that brings the ending balance to zero. It’s a planning target, not a guarantee.
How is the out-of-pocket maximum used?
Out-of-pocket spending is capped each year by the selected maximum (inflated over time). This prevents unusually high inputs from overstating annual costs when a plan limit applies.
Does the tax savings estimate match my actual tax return?
No. It’s a simplified estimate using personal contributions multiplied by your marginal tax rate. Actual results depend on eligibility rules, limits, and how your account is treated under local tax law.
What if I expect costs to spike in a specific year?
Use the one-time expense fields. Enter the amount in today’s dollars and the year number from now. The model inflates it to that year and adds it to the annual spend.
Can I compare two plans or strategies?
Yes. Run the calculator twice with different premiums, out-of-pocket values, savings rates, or premium savings. Download both CSV files and compare balance paths, total retirement spend, and suggested extra saving.