Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Estimated annual premium tax credit
$5,843
Your net annual premium after subsidy
$3,757
Your expected contribution toward benchmark plan
$3,757
Contribution as % of income
5.78%
Subsidy at risk if just over 400% FPL cliff
$0
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How to use this
- 1Enter household magi ($).
- 2Enter income as % of federal poverty level (%).
- 3Enter annual benchmark silver plan premium ($).
- 4Enter subsidy structure.
- 5Read your estimated annual premium tax credit on the right — it updates as you type.
- 6Hit Share to keep the scenario or send it to someone.
About this calculator
ACA marketplace premium tax credits are calculated by comparing a benchmark silver plan's cost to a percentage of your household income, on a sliding scale from about 0% of income at the lowest incomes up to 8.5% of income at the higher end, currently with no hard income cutoff through the extended subsidy enhancements. Before those enhancements, exceeding 400% of the federal poverty level caused a subsidy cliff — subsidies dropped to zero instantly rather than phasing out, sometimes costing a household thousands of dollars for earning just one extra dollar. This calculator models both scenarios: the current sliding-scale approach and the classic hard cliff at 400% FPL, so you can see the size of the subsidy at stake and how close you are to a meaningful drop, whether from expiring enhanced subsidies or your own income planning near a percentage-of-FPL threshold.
Worked example
Using the values the calculator loads with:
Inputs
- Household MAGI: 65000 $
- Income as % of Federal Poverty Level: 320 %
- Annual benchmark silver plan premium: 9600 $
- Subsidy structure: Enhanced sliding scale (no hard cutoff)
Results
- Estimated annual premium tax credit: $5,843
- Your net annual premium after subsidy: $3,757
- Your expected contribution toward benchmark plan: $3,757
- Contribution as % of income: 5.78%
- Subsidy at risk if just over 400% FPL cliff: $0
What each field means
Inputs
- Household MAGI ($)
- The household magi used in the calculation, measured in $. Starts at 65000 $ so you have a working example on load.
- Income as % of Federal Poverty Level (%)
- The income as % of federal poverty level used in the calculation, measured in %. Starts at 320 % so you have a working example on load. Accepted range: 100–600 %.
- Annual benchmark silver plan premium ($)
- The annual benchmark silver plan premium used in the calculation, measured in $. Starts at 9600 $ so you have a working example on load.
- Subsidy structure
- Pick the option that matches your situation — the maths changes per option. Choices: Enhanced sliding scale (no hard cutoff), Classic hard cliff at 400% FPL.
Results
- Estimated annual premium tax credit
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Your net annual premium after subsidy
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Your expected contribution toward benchmark plan
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Contribution as % of income
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Subsidy at risk if just over 400% FPL cliff
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Is the 400% FPL subsidy cliff currently in effect?
The American Rescue Plan and Inflation Reduction Act removed the hard 400% cliff through 2025, capping contributions at 8.5% of income regardless of how high income goes above 400% FPL. Unless Congress extends this again, the hard cliff is scheduled to return after 2025, which would restore the all-or-nothing drop this calculator also models.
How much can crossing the old cliff actually cost?
It varies by age, location, and plan cost, but going from just under to just over 400% FPL under the hard-cliff rules could mean losing several thousand dollars of subsidy for a $1 increase in income — a real cliff, not a gradual phase-out, which made year-end income timing (like Roth conversions or bonus timing) financially significant for near-threshold households.
What income counts toward the FPL percentage?
Modified adjusted gross income for the entire tax household, including self-employment income, most retirement account withdrawals, and even tax-exempt interest. Marketplace subsidy eligibility is based on estimated income for the coverage year, reconciled against actual income when you file taxes.
What happens if I underestimate my income and get too much subsidy?
You'll owe some or all of the excess back at tax time via Form 8962, though repayment caps apply for households under 400% FPL. Above 400% FPL when the hard cliff is in effect, you may owe back the entire excess subsidy with no repayment cap, which is a real risk for volatile or self-employment income near the threshold.
Accuracy and 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.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). ACA Subsidy Cliff Estimator. Retrieved from https://www.revenuelab.fyi/toolbox/aca-subsidy-cliff-estimate
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/aca-subsidy-cliff-estimate" target="_blank" rel="noopener">ACA Subsidy Cliff Estimator — RevenueLab</a> (2026).</p>
Source: [ACA Subsidy Cliff Estimator — RevenueLab](https://www.revenuelab.fyi/toolbox/aca-subsidy-cliff-estimate) (2026).