Example data table
| Monthly income | Net premium | Routine costs | Planned set-aside | Protection savings | Emergency reserve | Total monthly budget | % of income |
|---|---|---|---|---|---|---|---|
| $5,000 | $300 | $195 | $100 | $200 | $107.08 | $902.08 | 18.04% |
| $3,200 | $240 | $140 | $50 | $150 | $60.00 | $640.00 | 20.00% |
Figures are illustrative. Your totals change with your inputs, timeframes, and existing savings.
Formula used
- Net premium (monthly) = max(0, Premium − Employer contribution)
- Routine costs (monthly) = (Copay × Visits) + Medications + Labs/Imaging + Dental/Vision + Other
- Planned set-aside (monthly) = Planned annual procedures ÷ 12
- Base spend (monthly) = Net premium + Routine costs + Planned set-aside
- Protection need = max(0, Target amount − Current healthcare savings)
- Protection savings (monthly) = Protection need ÷ Savings timeframe (months)
- Desired emergency reserve = Base spend × Emergency buffer (months)
- Emergency reserve (monthly) = max(0, Desired reserve − Remaining savings) ÷ Emergency build timeframe
- Additional savings needed = max(0, Protection savings − Existing contribution) + max(0, Emergency reserve − Remaining contribution)
- Total budget (monthly) = Base spend + Additional savings needed
- Budget % = (Total budget ÷ Monthly income) × 100
The projection uses a monthly growth rate derived from your annual assumption to estimate future spending.
How to use this calculator
- Enter your monthly income and choose a currency.
- Add your premium and any contribution that reduces it.
- Estimate routine costs from visits, copays, medicines, and tests.
- Include known annual procedures to spread costs across months.
- Select a protection target and a savings timeframe you prefer.
- Set an emergency buffer and how quickly you will build it.
- Add any monthly savings you already contribute.
- Press Calculate to see totals, percentages, and downloads.
Premium and contribution planning
Premiums are usually the largest fixed cost. Budget the net premium after any employer contribution. If your premium is 450 and support is 150, the net premium is 300 monthly. Add expected payroll deductions and confirm whether dependents raise the rate. Recheck the amount at renewal and after major coverage changes.
Routine care and medicines
Routine spending includes copays, visits, medicines, labs, and supplies. This calculator estimates visit costs as copay times visits. With a 25 copay and two visits, visit costs are 50 monthly. Add medicines, labs, dental, and other items to build a reliable baseline. Track seasonal swings, such as allergy months, and average them across the year for steadier budgeting.
Planned procedures allocation
Known procedures feel expensive because they arrive in one bill. Convert them into a monthly set‑aside by dividing annual planned costs by 12. For example, 1,200 annually becomes 100 monthly. This method stabilizes cash flow and prevents skipping preventive care. If timing is predictable, you can front‑load savings before the procedure month to reduce short‑term strain.
Protection savings target
Savings should cover either the deductible or the out‑of‑pocket maximum. Protection need equals target minus current healthcare savings, then spread across your chosen months. If the target is 2,000, savings are 500, and you want ten months, the suggested amount is 150 monthly. Any existing monthly contribution reduces the gap, so the required additional savings may be lower than the headline target.
Income fit and forward projection
Total budget equals base spend plus additional savings needed. Compare the result to income to judge affordability and adjust timeframes if needed. Many households aim to keep this ratio near 12% to 20%, depending on risk and benefits. The projection applies an annual cost‑growth assumption and converts it to a monthly rate. Over twelve months at 6%, a 600 base spend rises to about 635 by month twelve. Use charts to compare components across your months.
FAQs
1) What should I enter for monthly income?
Use take-home pay after taxes and payroll deductions. If income varies, use a conservative average from the last six months so the budget stays workable.
2) Should my savings target be the deductible or out-of-pocket maximum?
Choose the deductible for a lighter target and faster progress. Choose the out-of-pocket maximum for stronger worst-case protection, especially with chronic conditions or frequent care.
3) How do I estimate routine costs with irregular appointments?
Convert irregular costs into an average. Add up visits, medicines, and tests from the last three to six months, then divide by the number of months to get a realistic monthly baseline.
4) What does the projection represent?
It projects spending only, not savings balances. It applies your annual cost-growth assumption to the base monthly spend to estimate future monthly amounts and the total spend across the selected horizon.
5) Can this be used for a family plan?
Yes. Enter the household size for context, and include premiums and routine costs for all covered members. If one person has special needs, add those medicines and visits to improve accuracy.
6) How often should I update my numbers?
Update after plan renewals, salary changes, new prescriptions, or major procedures. Otherwise, reviewing quarterly keeps the budget aligned with real spending without constant adjustments.