HDHP vs PPO break-even calculator.

How the comparison works

For each plan the calculator adds your yearly premiums to what you pay toward the bills, then subtracts any employer HSA money and the tax you save on your own HSA deposit.

1. Your share of the bills = the deductible (or your bills, if lower) plus your coinsurance percentage on everything above the deductible, capped at the out-of-pocket maximum.
2. Net cost = premium + your share − employer HSA − tax saved. Tax saved = your own deposit × (marginal rate + 7.65% if deposited through payroll).
3. Break-even = the first level of total medical bills, in steps of $10, where the cheaper plan changes.

2027 limits that define an HSA-eligible plan

IRS Rev. Proc. 2026-24 sets, for calendar year 2027: a high deductible health plan has a deductible of at least $1,750 (self-only) or $3,500 (family) and out-of-pocket expenses no higher than $8,700 (self-only) or $17,400 (family). The HSA contribution limit is $4,500 self-only or $9,000 family, counting employer deposits. The calculator warns you if your inputs break these limits. See the HSA contribution limit calculator for catch-up and part-year rules.

Worked example

Self-only, 22% tax bracket with payroll deposits. HDHP: $1,200 premium, $3,500 deductible, 20% coinsurance, $7,000 maximum, $1,000 of your own HSA money and $500 from the employer. PPO: $3,000 premium, $500 deductible, 20% coinsurance, $4,000 maximum. With $2,500 of bills the HDHP costs $2,903.50 net ($1,200.00 premium + $2,500.00 bills − $500.00 employer − $296.50 tax saved) and the PPO $3,900.00. At $25,000 of bills the HDHP is $7,403.50 and the PPO $7,000.00. The break-even is about $18,990: below it the HDHP wins, above it the PPO does.

What the numbers leave out

• Copays. Flat copays on a PPO are not modelled; use the deductible and coinsurance that match your usage or compare with the out-of-pocket maximum calculator.
• HSA money you keep. Unspent HSA deposits stay yours, so the HDHP's cost here is a cash outlay, not money lost.
• Network, drugs and care you avoid. A cheaper plan on paper can cost more if your doctors are out of network or you delay care because of the deductible.
• Rules for your state and employer. State tax treatment of HSAs differs.

Low, medium and high usage

To test a quiet year, a typical year and a bad year, run the calculator three times with different medical bills. If a plan wins at all three, that is your answer. If the winner flips, use the break-even as the line to judge your own year against.

Sources

Retrieved 2026-11-01. Each page was opened and read against the claim next to it.

• IRS Rev. Proc. 2026-24, 2027 HSA and HDHP limits: the 2027 HDHP minimum deductible and out-of-pocket limit and the HSA contribution limits.
• CMS, Plan Year 2027 Marketplace Plans and Prices Fact Sheet (October 30, 2026): the HSA-eligible plan availability on HealthCare.gov for 2027.