This COBRA cost calculator estimates continuation coverage premiums from the employer plan rate plus the allowable administrative load. It is an educational budget tool for coverage gaps after job change. Confirm exact premiums and deadlines with the plan administrator.
Browse payroll and exit planning tools under tax and payroll, finance calculators, and the calculators archive. Pair COBRA budgeting with the severance pay calculator, the final paycheck calculator, and the PTO payout calculator when you are mapping a full departure cash timeline.
What this COBRA cost calculator does
The tool works as a cobra premium calculator and a cobra insurance cost calculator for educational planning. Enter a known monthly full premium or an annual W-2 DD amount, choose coverage months, and read monthly cost with the admin fee plus a multi-month total. It helps you estimate COBRA cost quickly. It does not enroll you, verify qualifying events, or quote marketplace subsidies.
Who it helps
- Workers leaving a job who need a first-pass continuation premium estimate
- Households comparing COBRA totals to emergency savings and severance cash
- HR and finance teammates explaining why the employee share jumps after exit
- Anyone who wants a free estimate without creating an account
How to estimate COBRA premium cost
- Choose premium mode or W-2 DD mode.
- Enter the full monthly group premium, or enter annual Box 12 DD and let the tool divide by 12.
- Enter the number of months you expect to keep COBRA coverage.
- Read monthly cost after the administration fee and the total for that span.
- Compare the total with marketplace or new-employer coverage quotes before you decide.
How the calculation works
The base monthly premium is either the premium you enter or W-2 DD divided by 12. Monthly COBRA cost equals that base times one plus the administration fee percent. Multicalify defaults the fee to 2 percent unless configured otherwise. Total cost equals monthly COBRA cost times the months selected.
Monthly COBRA ≈ premium × (1 + 2% admin)
Or base = W-2 DD / 12, then monthly = base × (1 + 2% admin)
Total ≈ monthly × months
COBRA often lasts up to 18 months for many job-loss events, with longer periods possible for some qualifying events. Losing job-based coverage can also open an ACA special enrollment window. Marketplace plans with subsidies are often cheaper than full COBRA premiums, so treat this page as a cost sketch rather than the only path.
Worked example
If the full group premium is $650 per month, a 2% administration fee raises the monthly COBRA estimate to $663. Over 18 months the total is about $11,934. That figure is a planning estimate before any plan-specific rules, premium changes mid-year, or subsidy comparisons.
| Item | Value |
|---|---|
| Full monthly premium | $650 |
| Admin fee | 2% |
| Monthly COBRA estimate | $663 |
| Months | 18 |
| 18-month total | About $11,934 |
How to interpret COBRA cost results
Use the monthly number to update your post-employment budget immediately. Use the multi-month total to see how long severance, savings, or a bridge job must cover health insurance. If the total crowds out rent or debt payments, prioritize shopping ACA marketplace options and new-employer benefits during open or special enrollment.
COBRA preserves continuity with the same underlying group plan design, which some people need for specific providers or treatments. Continuity can be valuable even when the premium is high. Still compare networks, deductibles, and out-of-pocket maximums rather than price alone. For paycheck and leave cash that may fund premiums, review the final paycheck calculator and PTO payout calculator.
Factors that change COBRA cost
- Whether you covered yourself only or added spouse and dependents
- The full employer group premium, not only the employee payroll share you used to pay
- Administration fee percent allowed on continuation coverage
- How many months you actually keep the coverage
- Mid-year plan premium changes if your continuation spans a renewal
- Whether a new employer plan or marketplace subsidy is available sooner
Practical planning after a job change
Ask HR for the full premium amounts used in COBRA election notices rather than guessing from your old paycheck deduction. Former employee shares often looked small because the employer paid most of the premium while you worked. After exit, you typically pay the full premium plus the admin fee.
Calendar election deadlines and first payment due dates. Missing them can forfeit continuation rights. At the same time, calendar ACA special enrollment so you can estimate COBRA cost beside marketplace quotes. If severance negotiations are open, model health bridge needs with the severance pay calculator before you accept a package.
COBRA budgeting mistakes after leaving a job
- Using only the old employee payroll deduction as the COBRA premium
- Forgetting the administration fee when budgeting monthly cash
- Ignoring marketplace or new-employer alternatives that may cost less
- Assuming every qualifying event lasts exactly 18 months without reading the notice
- Treating the calculator total as a binding insurer invoice
- Skipping provider network checks while focusing only on premium
Limitations and benefits note
This cobra cost calculator is an educational planning estimate. It does not determine eligibility, election rights, or final billed premiums. COBRA and ACA rules are fact-specific. Confirm figures on your election notice and compare alternatives with a licensed benefits counselor or marketplace assister when decisions are time-sensitive.
Related tools
Continue with the severance pay calculator, final paycheck calculator, PTO payout calculator, and salary tax calculator. More options live under tax and payroll.
COBRA versus marketplace in plain terms
COBRA continues the employer group plan you already know, usually at the full premium plus admin fee. Marketplace coverage is a different plan menu that may include income-based savings. People who need the same doctors tomorrow sometimes accept higher COBRA cost for continuity. People who can switch networks may save by leaving COBRA earlier.
Run the Multicalify total for the months you truly need continuity, not automatically for the maximum period. A three-month bridge while you start a new job is a different budget problem than an eighteen-month stretch.
Building a post-exit insurance cash plan
List severance, final wages, and unused leave payouts, then subtract essential living costs and the COBRA monthly estimate. If the gap is large, shorten the COBRA window or move sooner to a subsidized plan when eligible. Keep written quotes side by side with this estimate so you are comparing real offers, not memory.
Revisit the calculation if dependents are added or removed, or if the plan renews at a new premium mid-continuation.
Using COBRA estimates in a coverage decision
Estimate monthly COBRA cost for the months you need bridge coverage, then compare with marketplace quotes and HSA implications if relevant. Deadlines are strict, so calendar the election window separately from the calculator math.
COBRA versus marketplace coverage timing
COBRA preserves the same plan network at a higher employee-paid cost. Marketplace plans may cost less with subsidies but change networks and formularies. Compare both before election deadlines expire.
Related: how much does COBRA cost · who is eligible for COBRA.