CCRC Entry Fee Breakeven Calculator

Determine how long it takes a continuing care retirement community entrance fee to pay for itself. Input the upfront fee, ongoing service charges, and what a comparable rental and care package would cost to compare breakeven timing and long-term net savings after any refundable portion is returned.

One-time upfront payment required by the continuing care retirement community contract.
Recurring monthly fee covering housing, dining, and bundled care services.
Estimate of what a rental community plus equivalent care services would cost per month.
Portion of the entrance fee the contract promises to refund to you or your estate; defaults to 0% when blank.
How many years you plan to stay before evaluating net cost; defaults to 10 years.

Informational planning tool only. Review contract terms, refund policies, and financial projections with your advisor before entering a CCRC agreement.

Examples

  • $450,000 entrance fee, $4,100 monthly service, $6,200 comparable cost, 75% refundable, 12-year horizon ⇒ Non-refundable portion at risk: $112,500.00 USD (25.00% of the entrance fee). Monthly cost advantage vs renting: $2,100.00 USD. Breakeven on the entrance fee occurs after about 53.6 months (4.5 years). Total spend over 12 years including refund: CCRC $702,900.00 USD vs alternative $892,800.00 USD. Net savings: $189,900.00 USD.
  • $320,000 entrance fee, $5,200 monthly fee, $5,200 comparable cost, 50% refundable, 8-year horizon ⇒ Non-refundable portion at risk: $160,000.00 USD (50.00% of the entrance fee). Monthly cost advantage vs renting: $0.00 USD. Service fees exceed or match the comparable option—no breakeven from monthly savings. Total spend over 8 years including refund: CCRC $659,200.00 USD vs alternative $499,200.00 USD. Net savings: -$160,000.00 USD.

FAQ

Should I include medical inflation in the comparable cost?

Yes. Build your best estimate of future rent and care costs into the comparable field so the breakeven reflects where prices are headed, not just today’s rates.

How do I handle refundable plans that require a unit resale?

Use the refundable percentage offered, but lengthen the analysis horizon to the typical resale timeline so your cash flow assumptions stay realistic.

Can I compare multiple CCRC contracts?

Run the calculator for each contract and compare breakeven timing plus net savings across identical horizons to highlight which structure fits your finances.

Does the tool consider tax implications?

No. Consult a tax professional about medical deductions or refund taxation before signing a contract.

Additional Information

  • Refundable percentage reduces the entrance fee at risk; confirm whether refunds are net of resale fees or paid on a resale schedule.
  • Monthly cost advantage compares the CCRC service fee to your alternative housing plus care estimate—update it annually to reflect rising costs.
  • Net savings subtract refundable entrance fee portions and service charges from the alternative over the selected horizon.
  • Outputs are denominated in USD and treat monthly savings as level; adjust inputs to test inflation or fee escalators.

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