{
  "slug": "cobra-continuation-cost",
  "title": "COBRA Continuation Cost Calculator",
  "heading": "COBRA Health Insurance Cost Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/cobra-continuation-cost",
  "summary": "Estimate your monthly COBRA premium after losing job-based coverage.",
  "description": "COBRA lets you keep your employer group health plan after job loss, but you pay the full premium yourself — both the portion your employer used to cover and your own share — plus a 2% administrative fee, which is why COBRA premiums often shock people who were paying a small payroll deduction before. Coverage generally lasts up to 18 months for job loss (longer for some qualifying events like disability, up to 29 months, or divorce/death, up to 36 months). This calculator adds your former employer's contribution and your own premium share, applies the 2% administrative surcharge, and shows the real monthly and total cost over your expected coverage window, so you can compare it honestly against ACA marketplace plans before deciding which to take during your open enrollment-equivalent window after a qualifying event.",
  "formula": "COBRA premium = (employer share + employee share) × 1.02; total cost = monthly premium × months of coverage.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=cobra-continuation-cost",
  "inputs": [
    {
      "id": "employerShare",
      "label": "Employer's former monthly contribution",
      "kind": "number",
      "hint": null,
      "default": 550,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "employeeShare",
      "label": "Your former monthly payroll deduction",
      "kind": "number",
      "hint": null,
      "default": 150,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "months",
      "label": "Months of COBRA coverage needed",
      "kind": "number",
      "hint": null,
      "default": 12,
      "unit": null,
      "min": 1,
      "max": 36
    }
  ],
  "outputs": [
    {
      "id": "cobraMonthly",
      "label": "Monthly COBRA premium",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "increase",
      "label": "Increase vs. what you used to pay",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "totalCost",
      "label": "Total cost over coverage period",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "fullPremium",
      "label": "Full unsubsidized group plan premium",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Employer's former monthly contribution: 550 $",
      "Your former monthly payroll deduction: 150 $",
      "Months of COBRA coverage needed: 12"
    ],
    "outputs": [
      "Monthly COBRA premium: $714.00",
      "Increase vs. what you used to pay: $564.00",
      "Total cost over coverage period: $8,568",
      "Full unsubsidized group plan premium: $700.00"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter employer's former monthly contribution ($).",
      "Enter your former monthly payroll deduction ($).",
      "Enter months of cobra coverage needed.",
      "Read your monthly cobra premium on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "employerShare": 330,
        "employeeShare": 90,
        "months": 7
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "employerShare": 550,
        "employeeShare": 150,
        "months": 12
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "employerShare": 880,
        "employeeShare": 240,
        "months": 19
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why is COBRA so much more expensive than what I paid while employed?",
      "a": "While employed, your employer typically covers a large majority of the premium (often 70-80% for employer plans) and you only see your smaller payroll deduction. Under COBRA you must pay both shares yourself plus a 2% administrative fee, so the sticker shock reflects the true, previously-hidden full cost of your health coverage."
    },
    {
      "q": "How long can I stay on COBRA?",
      "a": "Standard qualifying events like job loss or reduced hours provide 18 months of COBRA eligibility. A Social Security disability determination within the first 60 days can extend it to 29 months, and events like divorce, death of the covered employee, or a dependent aging out can qualify for 36 months in some cases."
    },
    {
      "q": "Is COBRA usually cheaper or more expensive than an ACA marketplace plan?",
      "a": "It depends heavily on your income and marketplace subsidy eligibility — job loss is a qualifying life event for special enrollment, and if your income now qualifies for a substantial premium tax credit, a marketplace plan is very often cheaper than unsubsidized COBRA, even accounting for a different network or higher deductible."
    },
    {
      "q": "Do I have to decide right away?",
      "a": "No, you generally have 60 days from your qualifying event notice to elect COBRA, and if you elect it, coverage is retroactive to your last day of employer coverage, meaning there's no actual gap even if you decide near the end of the window, as long as you pay the retroactive premiums."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/aca-subsidy-cliff-estimate",
    "https://www.revenuelab.fyi/toolbox/unemployment-benefit-estimate"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — COBRA Continuation Cost Calculator (https://www.revenuelab.fyi/toolbox/cobra-continuation-cost)"
}