How CobraCalc works
CobraCalc compares the cost of COBRA and a Marketplace plan for each year, from the year you retire through age 64. At 65 you can use Medicare. Here is how each number is found. All the math runs in your browser using 2026 rules.
What income counts (MAGI)?
MAGI is the income number the Marketplace uses to set your help. CobraCalc adds up:
MAGI = pay + IRA/401(k) withdrawals + investment gains + dividends + interest + (all of your Social Security) + other income.
You can enter one set of income numbers for every year, or check "Customize income by year" to change them year by year. That helps if a part-time job ends or Social Security starts later.
How is the poverty-line percent found?
It is your MAGI divided by the federal poverty line for your household size, times 100. For 2026 coverage the Marketplace uses the 2025 poverty lines (the prior year's are always used), for the lower 48 states:
| Household size | Poverty line (2025, used for 2026) |
|---|---|
| 1 person | $15,650 |
| 2 people | $21,150 |
| 3 people | $26,650 |
| 4 people | $32,150 |
| Each extra person | +$5,500 |
How is the plan price found?
Your help is tied to a "benchmark" plan — the second-cheapest mid-level (Silver) plan. CobraCalc starts with the national average for that plan at age 40, about $625 a month in 2026. Older people pay more for the same plan — up to 3 times what a 21-year-old pays. So the tool raises the price to match your age (age 40 is the starting point). Then it grows the price a little each year by the inflation rate you pick (5% by default).
This $625 figure is a national average, not your state's real rate. Prices vary a lot by state and county. You can type in a real quote for your age in the assumptions box to make the estimate much closer for where you live. See our sources & methodology for where these numbers come from.
| Age | Factor | Age | Factor |
|---|---|---|---|
| 50 | 2.106 | 58 | 2.786 |
| 51 | 2.149 | 59 | 2.849 |
| 52 | 2.211 | 60 | 2.933 |
| 53 | 2.273 | 61 | 3.000 |
| 54 | 2.337 | 62 | 3.000 |
| 55 | 2.401 | 63 | 3.000 |
| 56 | 2.549 | 64 | 3.000 |
| 57 | 2.634 | 65 | Medicare |
How is the help amount found?
The help equals the plan price minus the share you are expected to pay. Your share is a percent of your income, and it goes up as you earn more. The extra help from 2021–2025 ended on December 31, 2025. So 2026 goes back to the old table, where the top share you pay is higher (9.96%). The tool also smooths the numbers between rows, so there are no sudden jumps:
| Income vs. poverty line | Your share (% of income) |
|---|---|
| Below 100% | 0% — likely Medicaid (shown on its own) |
| 100–133% | 2.10% |
| 133–150% | 3.14% → 4.19% |
| 150–200% | 4.19% → 6.60% |
| 200–250% | 6.60% → 8.44% |
| 250–300% | 8.44% → 9.96% |
| 300–400% | 9.96% |
| Over 400% | No help — the cliff |
Help = plan price − your share. The help can't go below $0. What you pay = plan price − help. If you make more than 4 times the poverty line, you get no help and pay the full price.
How is the COBRA cost found?
COBRA cost is your monthly COBRA price × 12. It only shows for the first 18 months after you retire, because that is how long COBRA lasts. COBRA usually costs the full group price plus a 2% fee. That is the number on your COBRA letter, so type that in.
How does CobraCalc pick a winner?
COBRA is a one-time choice when you leave your job. You can't switch to it later. So we treat it as a single decision. We add up what COBRA would cost over the 18 months it is offered, and compare that to a Marketplace plan for the same time. If COBRA is cheaper, we suggest it for that window, then a Marketplace plan after. If not, we suggest a Marketplace plan from the start. At 65, Medicare takes over.
A colored dot shows your help status each year:
- 🟢 Green — you get help (a subsidy).
- 🟡 Yellow — little or no help.
- 🔴 Red — your income is too high for help.
- ⚪ Blue — you're below the poverty line (likely Medicaid).
- ⚫ Grey — Medicare at 65.
What this tool can't do
CobraCalc gives an estimate to help you plan. It is not a real quote. Real plan prices change a lot by state and county. Some rules have special cases this tool does not cover. And tax laws can change. Use the plan-price box with a real quote, and check any big choice with a licensed agent or a tax pro. See the disclaimer.