COBRA Cost Calculator
Estimate your monthly COBRA premium: the full plan cost (your share plus your employer's share) plus the allowed 2% administrative fee.
How to use this tool
- Enter the monthly premium you currently pay from your paycheck.
- Enter the share your employer currently pays toward the same coverage.
- Keep the admin fee at 2% (the legal maximum) unless your notice says otherwise.
- Set how many months you expect to stay on COBRA to see the total cost.
COBRA lets you keep your former employer's group health plan after leaving a job — but you pay the entire premium, not just your old paycheck share. That means picking up the part your employer used to cover, plus an administrative fee of up to 2%. This calculator shows the realistic monthly bill and the total over your coverage period.
Formula
COBRA monthly premium
Full premium = Your share + Employer's share
Monthly cost = Full premium × (1 + Admin fee%)
Total cost = Monthly cost × Months of coverage
The shock factor of COBRA is the employer-share pickup: a plan that cost you $200 can suddenly cost over $800 because you now pay the whole thing plus the fee.
How it works
Under COBRA, the price you pay is the plan's full group premium — your previous payroll deduction plus the share your employer was quietly subsidizing — and the law lets the plan add an administrative surcharge of up to 2%. This calculator sums both shares to recover the full premium, applies the fee, and projects the total over the months you expect to need coverage. The key insight it surfaces is how large the employer subsidy usually is.
Standard COBRA continuation runs up to 18 months after a job loss or reduction in hours, with extensions to 29 or 36 months in certain situations (such as disability or for dependents after specific qualifying events), which is why this tool lets you set the duration. Before electing COBRA, compare it with a Marketplace plan: leaving a job is a qualifying event for special enrollment, and a subsidized Marketplace plan is often far cheaper than unsubsidized COBRA.
This is general information, not insurance or legal advice. Your actual COBRA premium is set by the plan administrator and the admin fee can vary; request the exact figure in your COBRA election notice before deciding.
Worked example
Plan that cost you $200, employer covered $600, kept 18 months
- Full premium: $200 your share + $600 employer share = $800.
- Add the 2% admin fee: $800 × 1.02 = $816 per month.
- Total over 18 months: $816 × 18 = $14,688.
Monthly COBRA premium: $816.00
Monthly COBRA premium with a 2% fee, by full premium
| Your old share | Employer share | Full premium | With 2% fee |
|---|---|---|---|
| $100 | $400 | $500 | $510.00 |
| $150 | $450 | $600 | $612.00 |
| $200 | $600 | $800 | $816.00 |
| $300 | $900 | $1,200 | $1,224.00 |
Key terms
- COBRA
- A federal law letting you temporarily continue an employer group health plan after leaving the job, at your own full cost.
- Qualifying event
- An event such as job loss, reduced hours, or divorce that makes you eligible to elect COBRA continuation coverage.
- Full premium
- The plan's entire monthly cost — your former payroll share plus the part your employer used to pay.
- Administrative fee
- A surcharge of up to 2% of the premium that COBRA allows the plan to add to cover administration.
Frequently asked questions
- Why is COBRA so much more expensive than my paycheck deduction?
- Because you now pay the full group premium. Employers typically cover the majority of the cost; under COBRA you pick up that share too, plus up to a 2% administrative fee.
- How long can I keep COBRA coverage?
- Usually up to 18 months after a job loss or hours reduction, with possible extensions to 29 or 36 months for disability or certain dependent qualifying events.
- Is COBRA my only option after leaving a job?
- No. Losing job-based coverage triggers a Marketplace special enrollment period, and a subsidized Marketplace plan is frequently cheaper than unsubsidized COBRA. Compare both before electing.