Deductible Tradeoff Calculator
Compare low- and high-deductible plans using premium plus probability-weighted out-of-pocket on a typical claim size.
Enter Your Values
Using shared profile · 3,500/mo · EUR — edit on Dashboard
Results update automatically as you change values.
What-If Scenarios
Results update instantlyCost Breakdown
Expected Annual Cost
Click chart to expand
Side-by-Side Comparison
Bars show relative size · ✓ marks the better option- Premium
- €1,200
- Expected OOP
- €75
- Total
- €1,275
- Premium
- €800
- Expected OOP
- €375
- Total
- €1,175
| Factor | Low Deductible | Recommended High Deductible |
|---|---|---|
| Premium | €1,200 | €800 |
| Expected OOP | €75 | €375 |
| Total | €1,275 | €1,175 |
High Deductible has lower expected cost by €100. Ensure you can pay the high deductible in cash if you choose it.
Scenario Analysis
How the outcome shifts if your assumptions turn out better or worse than expected.
Optimistic assumptions
At stated inputs
Pessimistic assumptions
Compare Scenarios
Pin up to 3 and see them side by sideSet your inputs, then Pin current to save this scenario. Pin a few variations to compare their scores and outcomes here.
What Moves the Needle Most
How much each factor changes your Low Deductible Expected Cost across its full range. Claim Prob. has the biggest impact.
Focus your attention on Claim Prob. — getting it right matters most. Factors lower down move the result less, so rough estimates there are fine.
Confidence & Assumptions
The outcome shifts meaningfully with your assumptions. Sensible, but revisit the key inputs.
Low Deductible Expected Cost: €1,530 (worst) → €1,275 (expected) → €1,084 (best)
These are the estimates the result depends on. Adjust them (and the Advanced inputs) to match your real situation — the closer they are to reality, the more reliable your decision.
These estimates are for informational purposes only and do not constitute financial advice. Actual results may vary based on factors not captured in this calculator.
How This Calculator Works
What this calculator does
Decide whether paying more premium for a low deductible beats saving premium with a high deductible, given your claim odds.
How the calculation works
Expected OOP is claim probability × min(claim size, deductible). Total cost = premium + expected OOP for each option.
Formula
Total = Premium + Claim% × min(Claim Size, Deductible)
Example
Low: €1,200 + 15% × €500 = €1,275. High: €800 + 15% × €2,500 = €1,175. High deductible wins by €100 on EV — if you can pay €2,500 cash.
How to Use This Calculator
- 1Enter your numbers
Fill in the inputs for Deductible Tradeoff Calculator. Defaults are realistic starting points — replace them with your actual figures.
- 2Understand the calculation
Expected OOP is claim probability × min(claim size, deductible). Total cost = premium + expected OOP for each option.
- 3Review results and scenarios
Check metrics, cost breakdown, comparison tables, and best / expected / worst scenarios. Use sliders to stress-test assumptions.
- 4Decide with the verdict
Read the decision engine recommendation and FAQ. Example: Low: €1,200 + 15% × €500 = €1,275. High: €800 + 15% × €2,500 = €1,175. High deductible wins by €100 on EV — if you can pay €2,500 cash.
Factors to Consider
- Cash available to pay the deductible tomorrow
- Multi-claim years
- Premium discounts for bundling
- Risk tolerance beyond expected value
Common Mistakes
- Choosing high deductible without an emergency fund
- Using lifetime claim odds as annual odds
- Ignoring claim sizes larger than either deductible
Frequently Asked Questions
When does low deductible win?+
When claim probability or claim size is high enough that expected OOP erases the premium savings.
Is EV enough?+
No if a single claim would force debt. Prefer low deductible when cash buffers are thin.
This calculator provides estimates for informational purposes only and does not constitute financial, investment, tax, or legal advice. Always consult a qualified professional before making important financial decisions.
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