🛡 CoverFormula
Job Transition

COBRA vs. Marketplace Calculator

Estimate your monthly COBRA health insurance premium after a job loss, then compare it side by side against a subsidized ACA Marketplace plan.

Estimate Your COBRA Premium

Ask HR/payroll — this is what your employer currently pays toward your plan.
Federal law caps this at 2% for standard COBRA.

Compare COBRA vs. an ACA Marketplace Plan

Losing job-based coverage triggers a Special Enrollment Period — you can shop the Marketplace instead of electing COBRA. This estimates your subsidized Marketplace cost using the federal contribution-percentage formula so you can compare it side by side.

Look up your actual benchmark (2nd-lowest-cost Silver) premium at healthcare.gov — this is what the subsidy is calculated against.
Estimate only — uses the 2026 IRS applicable-percentage table (Rev. Proc. 2025-25), which reinstates the original ACA sliding scale and the 400%-FPL subsidy cliff after the enhanced ARPA/IRA credits expired 2026-01-01. If Congress passes a new extension, these figures could change — confirm your real subsidy amount at healthcare.gov before deciding.
60-Day Decision Window
You have 60 days from the qualifying event (or COBRA election notice, whichever is later) to elect COBRA. A common strategy: wait to see medical bills before deciding — you can retroactively elect COBRA within that window if a claim comes in, but if you don't need care, you can let the window pass and enroll in a Marketplace plan through your Special Enrollment Period instead.

Written & fact-checked by the CoverFormula editorial team · Last reviewed 2026-07-29

How COBRA Pricing Works

COBRA (the Consolidated Omnibus Budget Reconciliation Act) lets you keep your employer's group health plan after leaving your job — but you pay the full premium yourself: the portion your employer used to cover, plus your own payroll deduction, plus a standard 2% administration fee.

Why COBRA Feels So Expensive

Most employees only see their own payroll deduction and never realize how much their employer was contributing until they lose that subsidy. This calculator adds both amounts together, applies the admin fee, and projects the total cost over your expected coverage window so you can compare it against marketplace (ACA) plans or a spouse's employer plan.

How Much Does COBRA Cost on Average?

KFF's annual Employer Health Benefits Survey puts the average total premium (employer + employee share combined — the amount a COBRA enrollee pays) at roughly $770-$780/month for single coverage and $2,240-$2,260/month for family coverage, before the 2% admin fee. Your actual number depends entirely on your former employer's specific plan — use the calculator above with your own payroll-deduction and employer-contribution figures (both appear on your final pay stub or a COBRA election notice) rather than a national average.

How Is COBRA Calculated From Your W-2 or Pay Stub?

Your former employer must send you a COBRA election notice stating the exact premium — you don't need to calculate it yourself from a W-2. If you want to estimate before that notice arrives: find your per-paycheck health-insurance deduction on a recent pay stub (not your W-2, which only shows annual totals), multiply by your pay frequency to get a monthly figure, then ask HR/payroll for the employer's monthly contribution amount to plug into the calculator above.

Estimate only. Actual COBRA premiums are set by your specific former employer's plan documents. Contact your HR department or plan administrator for your exact rate.
Formula
Monthly COBRA Premium = (Employee Payroll Deduction + Employer Contribution) × (1 + Admin Fee %)

How the Marketplace Comparison Works

The ACA caps what you're expected to pay toward a benchmark Silver plan at a sliding percentage of your household income — the lower your income relative to the Federal Poverty Line (FPL) for your household size, the smaller that percentage. The government subsidy covers the rest of the benchmark premium. This tool estimates that expected contribution and compares it to your COBRA premium above, so you can see which option costs less before your 60-day election window closes.

Marketplace Formula
%FPL = Household Income ÷ FPL for Household Size Expected Monthly Contribution = Household Income × Applicable % (by %FPL) ÷ 12 Net Marketplace Premium = min(Benchmark Premium, Expected Monthly Contribution)

How to Use This Calculator

  1. Enter your payroll deduction and your employer's monthly contribution (ask HR/payroll if unsure).
  2. Leave the admin fee at 2% (the federal cap) and set your needed coverage months, then click Calculate COBRA Cost.
  3. Enter your household income, size, state, and benchmark Silver premium, then click Compare to COBRA to see both options side by side.

Frequently Asked Questions

How long does COBRA coverage last?

Typically up to 18 months after a qualifying event like job loss or reduced hours, though certain circumstances (disability, divorce, death of the covered employee) can extend it to 29 or 36 months.

Is COBRA cheaper than an ACA marketplace plan?

Not usually — because COBRA requires you to pay 100% of the premium plus a 2% fee, marketplace plans with income-based subsidies are frequently cheaper for the same coverage tier. Always compare both before deciding.

Can I decline COBRA and buy a marketplace plan instead?

Yes. Losing job-based coverage triggers a Special Enrollment Period for ACA marketplace plans, so you are not required to elect COBRA.

Can I wait to decide between COBRA and the Marketplace?

Yes — you have 60 days from your qualifying event to elect COBRA, and that election can be retroactive to your coverage-loss date. Many people wait to see if a medical claim comes in before deciding; if nothing comes up, they let the window pass and enroll in a Marketplace plan through their Special Enrollment Period instead.

How is my ACA Marketplace subsidy calculated?

Your subsidy is based on your household income as a percentage of the Federal Poverty Line (FPL) for your household size and state. The government caps what you're expected to pay toward the benchmark (2nd-lowest-cost) Silver plan at a sliding percentage of income, and the subsidy covers the rest, up to the full benchmark premium.

How much does COBRA insurance cost per month on average?

KFF survey data puts average total premiums around $770-$780/month for single coverage and $2,240-$2,260/month for family coverage, though your exact rate depends on your former employer's specific plan — use the calculator above with your own numbers.

How do I figure out my COBRA cost from my pay stub?

Find your per-paycheck health insurance deduction on a recent pay stub, multiply by your pay frequency for a monthly figure, then ask HR for the employer's monthly contribution to add in — your former employer's official COBRA election notice will state the exact premium.

Sources