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
HDHP total annual cost
$6,720
PPO total annual cost
$8,500
PPO cost minus HDHP cost
$1,780
HSA contribution tax savings
$480
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How to use this
- 1Enter hdhp annual premium ($).
- 2Enter hdhp deductible ($).
- 3Enter ppo annual premium ($).
- 4Enter ppo deductible ($).
- 5Enter expected annual medical spend (billed) ($).
- 6Enter hsa contribution (hdhp only) ($).
- 7Enter marginal tax rate (%).
- 8Read your hdhp total annual cost on the right — it updates as you type.
- 9Hit Share to keep the scenario or send it to someone.
About this calculator
Choosing between a high-deductible health plan and a PPO during open enrollment comes down to total expected annual cost, not just the premium difference most people focus on. An HDHP has a lower premium but shifts more cost to you until you hit the deductible, while unlocking HSA contributions with their triple tax advantage. A PPO has a higher premium but lower deductibles, copays for routine visits, and less financial risk in a bad health year. This calculator projects total annual cost under each plan across your estimated healthcare utilization, including the HSA tax savings on your HDHP contribution, so you can see which plan wins at your actual usage level rather than a generic recommendation, and where the breakeven utilization point sits between the two.
Worked example
Using the values the calculator loads with:
Inputs
- HDHP annual premium: 3600 $
- HDHP deductible: 3500 $
- PPO annual premium: 6600 $
- PPO deductible: 1000 $
- Expected annual medical spend (billed): 4000 $
- HSA contribution (HDHP only): 2000 $
- Marginal tax rate: 24 %
Results
- HDHP total annual cost: $6,720
- PPO total annual cost: $8,500
- PPO cost minus HDHP cost: $1,780
- HSA contribution tax savings: $480
What each field means
Inputs
- HDHP annual premium ($)
- The hdhp annual premium used in the calculation, measured in $. Starts at 3600 $ so you have a working example on load.
- HDHP deductible ($)
- The hdhp deductible used in the calculation, measured in $. Starts at 3500 $ so you have a working example on load.
- PPO annual premium ($)
- The ppo annual premium used in the calculation, measured in $. Starts at 6600 $ so you have a working example on load.
- PPO deductible ($)
- The ppo deductible used in the calculation, measured in $. Starts at 1000 $ so you have a working example on load.
- Expected annual medical spend (billed) ($)
- The expected annual medical spend (billed) used in the calculation, measured in $. Starts at 4000 $ so you have a working example on load.
- HSA contribution (HDHP only) ($)
- The hsa contribution (hdhp only) used in the calculation, measured in $. Starts at 2000 $ so you have a working example on load.
- Marginal tax rate (%)
- The marginal tax rate used in the calculation, measured in %. Starts at 24 % so you have a working example on load. Accepted range: 0–50 %.
Results
- HDHP total annual cost
- 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.
- PPO total annual cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- PPO cost minus HDHP cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- HSA contribution tax savings
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
What's the real advantage of the HSA that comes with an HDHP?
HSAs offer triple tax advantage: contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free too, unlike an FSA which you can lose at year end. Unused HSA balances roll over indefinitely and can even be invested, functioning as a supplemental retirement account for future medical costs after age 65.
At what usage level does a PPO usually win?
PPOs tend to win when you have predictable, moderate-to-high medical usage — chronic conditions requiring regular specialist visits, ongoing prescriptions, or a planned surgery — because the lower deductible and copay structure caps your exposure sooner. Healthy individuals or families with mostly preventive-care usage usually come out ahead on an HDHP.
Does employer HSA contribution change this calculation?
Yes significantly — if your employer contributes $500-$1,500 to your HSA, that's free money that should be subtracted from your effective HDHP cost before comparing. Add any employer HSA contribution to your own contribution in this calculator's HSA field to see the full tax-advantaged benefit reflected in the total cost.
Can I contribute to both an HSA and FSA in the same year?
Generally no, with an exception for a 'limited purpose FSA' that only covers dental and vision expenses, which is compatible with HSA eligibility. Contributing to a general-purpose FSA while also having HSA-eligible HDHP coverage disqualifies your HSA contributions for that tax year, so check your plan's FSA options carefully during enrollment.
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). HDHP vs PPO Total Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/hdhp-vs-ppo-total-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/hdhp-vs-ppo-total-cost" target="_blank" rel="noopener">HDHP vs PPO Total Cost Calculator — RevenueLab</a> (2026).</p>
Source: [HDHP vs PPO Total Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/hdhp-vs-ppo-total-cost) (2026).