{
  "slug": "hsa-vs-ppo-total-cost",
  "title": "HSA vs PPO Total Cost Calculator",
  "heading": "HSA-Eligible HDHP vs PPO Cost Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/hsa-vs-ppo-total-cost",
  "summary": "Compare true after-tax cost of an HSA-eligible plan against a traditional PPO.",
  "description": "An HSA-eligible high-deductible plan looks more expensive on paper because you're exposed to more out-of-pocket cost before insurance kicks in. But the HSA contribution is pre-tax, grows tax-free, and — unlike an FSA — never expires, which can offset a meaningful chunk of the deductible risk. This calculator nets premiums, expected claims, and the tax value of your HSA contribution against a PPO's higher premium and lower deductible to show the real after-tax annual cost of each option at your expected medical spend. It also shows the employer HSA contribution as a straight discount, since that money is not yours to lose if you pick the PPO instead. Run this with a conservative, typical, and high medical-spend scenario since your answer can flip a few thousand dollars either way depending on how much care you actually use that year.",
  "formula": "After-tax cost = premium×12 + memberClaimsShare − (HSA contribution × marginal tax rate) − employer HSA contribution.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=hsa-vs-ppo-total-cost",
  "inputs": [
    {
      "id": "premiumHDHP",
      "label": "HDHP monthly premium",
      "kind": "number",
      "hint": null,
      "default": 210,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "premiumPPO",
      "label": "PPO monthly premium",
      "kind": "number",
      "hint": null,
      "default": 450,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "expectedSpend",
      "label": "Expected annual medical spend",
      "kind": "number",
      "hint": null,
      "default": 4000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "hdhpDeductible",
      "label": "HDHP deductible",
      "kind": "number",
      "hint": null,
      "default": 3200,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "ppoDeductible",
      "label": "PPO deductible",
      "kind": "number",
      "hint": null,
      "default": 800,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "hsaContrib",
      "label": "Your annual HSA contribution",
      "kind": "number",
      "hint": null,
      "default": 2000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "employerHsa",
      "label": "Employer HSA contribution",
      "kind": "number",
      "hint": null,
      "default": 500,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "taxRate",
      "label": "Marginal tax rate (fed+state+FICA)",
      "kind": "number",
      "hint": null,
      "default": 32,
      "unit": "%",
      "min": 0,
      "max": 55
    }
  ],
  "outputs": [
    {
      "id": "savings",
      "label": "HDHP+HSA advantage vs PPO",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "hdhpCost",
      "label": "HDHP after-tax annual cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "ppoCost",
      "label": "PPO annual cost",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "taxSavings",
      "label": "HSA tax savings this year",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "hsaBalanceGrowth",
      "label": "HSA balance after 1 yr at 7% growth",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "HDHP monthly premium: 210 $",
      "PPO monthly premium: 450 $",
      "Expected annual medical spend: 4000 $",
      "HDHP deductible: 3200 $",
      "PPO deductible: 800 $",
      "Your annual HSA contribution: 2000 $",
      "Employer HSA contribution: 500 $",
      "Marginal tax rate (fed+state+FICA): 32 %"
    ],
    "outputs": [
      "HDHP+HSA advantage vs PPO: $2,100",
      "HDHP after-tax annual cost: $4,740",
      "PPO annual cost: $6,840",
      "HSA tax savings this year: $640",
      "HSA balance after 1 yr at 7% growth: $2,675"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter hdhp monthly premium ($).",
      "Enter ppo monthly premium ($).",
      "Enter expected annual medical spend ($).",
      "Enter hdhp deductible ($).",
      "Enter ppo deductible ($).",
      "Enter your annual hsa contribution ($).",
      "Enter employer hsa contribution ($).",
      "Enter marginal tax rate (fed+state+fica) (%).",
      "Read your hdhp+hsa advantage vs ppo 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": {
        "premiumHDHP": 125,
        "premiumPPO": 270,
        "expectedSpend": 2400,
        "hdhpDeductible": 1900,
        "ppoDeductible": 500,
        "hsaContrib": 1200,
        "employerHsa": 300,
        "taxRate": 19
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "premiumHDHP": 210,
        "premiumPPO": 450,
        "expectedSpend": 4000,
        "hdhpDeductible": 3200,
        "ppoDeductible": 800,
        "hsaContrib": 2000,
        "employerHsa": 500,
        "taxRate": 32
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "premiumHDHP": 335,
        "premiumPPO": 720,
        "expectedSpend": 6400,
        "hdhpDeductible": 5100,
        "ppoDeductible": 1300,
        "hsaContrib": 3200,
        "employerHsa": 800,
        "taxRate": 51
      }
    }
  ],
  "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": "Is unused HSA money wasted like an FSA?",
      "a": "No. HSA balances roll over indefinitely and stay yours even if you change jobs or plans. After age 65 you can withdraw for any purpose penalty-free (paying regular income tax on non-medical withdrawals), which makes it functionally a second retirement account."
    },
    {
      "q": "What if I can't afford to hit the deductible in a bad year?",
      "a": "This is the real risk of HDHPs — a $3,200 deductible plus coinsurance up to the out-of-pocket max can hit within weeks of a surgery or ER visit. Keep the HSA balance or an emergency fund equal to at least your deductible before committing to an HDHP."
    },
    {
      "q": "Does the employer HSA contribution count toward my IRS limit?",
      "a": "Yes. The 2024 individual HSA limit is $4,150 ($8,300 family), and employer contributions count against that cap, so subtract the employer amount before deciding how much more you can contribute yourself."
    },
    {
      "q": "Why include a 7% growth assumption?",
      "a": "Many HSA providers let you invest balances above a small cash threshold in mutual funds once your balance is large enough. 7% approximates a conservative long-term equity blend, illustrating why maxing an HSA early is valuable even if you don't need the money for current care."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/deductible-vs-premium-breakeven",
    "https://www.revenuelab.fyi/toolbox/out-of-pocket-max-exposure"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — HSA vs PPO Total Cost Calculator (https://www.revenuelab.fyi/toolbox/hsa-vs-ppo-total-cost)"
}