{
  "slug": "medical-debt-payment-plan-calculator",
  "title": "Medical Debt Payment Plan Calculator",
  "heading": "Medical Debt Payment Plan Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/medical-debt-payment-plan-calculator",
  "summary": "Compare a hospital plan, a prompt-pay discount, and paying by card.",
  "description": "Hospital balances behave differently from other debt: most large systems offer interest-free payment plans, many will apply a prompt-pay discount for a lump sum, and nonprofit hospitals are generally required to have financial assistance policies that can reduce or erase a bill for qualifying incomes. The worst option is usually the most convenient one — putting the balance on a credit card, which converts an interest-free obligation into a 25% APR one. This calculator compares the three paths on total cost and monthly payment so you can see what the convenience actually costs, and shows the discount threshold at which paying now beats paying over time.",
  "formula": "Plan total = balance ÷ months (interest free). Lump total = balance × (1 − discount). Card total = amortized balance at the card APR.",
  "dateModified": "2026-09-06",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=medical-debt-payment-plan-calculator",
  "inputs": [
    {
      "id": "balance",
      "label": "Balance after insurance",
      "kind": "number",
      "hint": null,
      "default": 3800,
      "unit": "$",
      "min": 0,
      "max": 500000
    },
    {
      "id": "planMonths",
      "label": "Hospital plan length",
      "kind": "number",
      "hint": null,
      "default": 24,
      "unit": "months",
      "min": 1,
      "max": 72
    },
    {
      "id": "discount",
      "label": "Prompt-pay discount offered",
      "kind": "number",
      "hint": null,
      "default": 20,
      "unit": "%",
      "min": 0,
      "max": 60
    },
    {
      "id": "cardApr",
      "label": "Credit card APR",
      "kind": "number",
      "hint": null,
      "default": 24.99,
      "unit": "%",
      "min": 0,
      "max": 40
    },
    {
      "id": "cardPayment",
      "label": "Payment if you use the card",
      "kind": "number",
      "hint": null,
      "default": 160,
      "unit": "$/mo",
      "min": 0,
      "max": 20000
    },
    {
      "id": "assistancePct",
      "label": "Financial assistance reduction",
      "kind": "number",
      "hint": null,
      "default": 0,
      "unit": "%",
      "min": 0,
      "max": 100
    }
  ],
  "outputs": [
    {
      "id": "cardExtra",
      "label": "Extra cost of using a credit card",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "planPayment",
      "label": "Hospital plan monthly payment",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "planTotal",
      "label": "Hospital plan total (interest free)",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "lumpTotal",
      "label": "Lump-sum total after discount",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "lumpSaved",
      "label": "Saved by paying in full now",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "cardTotal",
      "label": "Total if paid by credit card",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Balance after insurance: 3800 $",
      "Hospital plan length: 24 months",
      "Prompt-pay discount offered: 20 %",
      "Credit card APR: 24.99 %",
      "Payment if you use the card: 160 $/mo",
      "Financial assistance reduction: 0 %"
    ],
    "outputs": [
      "Extra cost of using a credit card: $1,640",
      "Hospital plan monthly payment: $158",
      "Hospital plan total (interest free): $3,800",
      "Lump-sum total after discount: $3,040",
      "Saved by paying in full now: $760",
      "Total if paid by credit card: $5,440"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter balance after insurance ($).",
      "Enter hospital plan length (months).",
      "Enter prompt-pay discount offered (%).",
      "Enter credit card apr (%).",
      "Enter payment if you use the card ($/mo).",
      "Enter financial assistance reduction (%).",
      "Read your extra cost of using a credit card 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": {
        "balance": 2300,
        "planMonths": 14,
        "discount": 10,
        "cardApr": 14.993999999999998,
        "cardPayment": 100,
        "assistancePct": 0
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "balance": 3800,
        "planMonths": 24,
        "discount": 20,
        "cardApr": 24.99,
        "cardPayment": 160,
        "assistancePct": 0
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "balance": 6100,
        "planMonths": 38,
        "discount": 30,
        "cardApr": 39.984,
        "cardPayment": 260,
        "assistancePct": 0
      }
    }
  ],
  "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": "Do hospital payment plans charge interest?",
      "a": "In-house plans from nonprofit systems are often interest free. Third-party medical financing cards frequently are not — read which one you are being offered."
    },
    {
      "q": "How do I ask for financial assistance?",
      "a": "Request the hospital's financial assistance or charity care policy in writing. Nonprofit hospitals generally must have one, and eligibility is usually income based."
    },
    {
      "q": "Does medical debt appear on my credit report?",
      "a": "Rules have tightened in recent years, with smaller paid and unpaid medical balances treated differently by the bureaus. Reporting practices vary — check your report."
    },
    {
      "q": "Should I dispute the bill first?",
      "a": "Almost always request an itemized bill before paying. Coding and duplicate-charge errors are common and can change the balance before any plan starts."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/medical-bill-negotiation-calculator",
    "https://www.revenuelab.fyi/toolbox/collections-settlement-offer-calculator"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Medical Debt Payment Plan Calculator (https://www.revenuelab.fyi/toolbox/medical-debt-payment-plan-calculator)"
}