Home Warranty Deductible Breakeven Calculator

Determine whether a home warranty deductible pays off by comparing your premium, expected claims, average repair bills, and denial risk. The calculator contrasts warranty costs with self-insuring, highlights expected approved claims, and shows how many successful service calls you need to break even.

Total yearly cost of the home warranty plan.
Fee charged each time a technician is dispatched (service call fee).
Average number of covered claims you expect to file annually.
Typical repair or replacement cost the warranty would otherwise cover (before caps).
Optional — defaults to 0% when blank. Represents claims denied or not fully reimbursed.

Modeled outcomes are estimates. Confirm contract coverage limits, caps, and exclusions with your warranty provider before purchasing.

Examples

  • Example 1 — $720.00 premium, $125.00 deductible, 2.5 calls, $450.00 repair, 10% denial ⇒ Expected net savings: -$20.00 | Breakeven calls: 2.57 | Warranty cost per call: $458.00 | Warranty cost (annual): $1,145.00 | Self-insure cost: $1,125.00 | Expected approved claims: 2.25
  • Example 2 — $840.00 premium, $75.00 deductible, 3.5 calls, $550.00 repair ⇒ Expected net savings: $822.50 | Breakeven calls: 1.77 | Warranty cost per call: $315.00 | Warranty cost (annual): $1,102.50 | Self-insure cost: $1,925.00 | Expected approved claims: 3.50

FAQ

How should I estimate the denial rate?

Review past claim history or provider reviews to approximate the percentage of claims that are denied, partially reimbursed, or subject to caps.

Can I compare multiple warranty tiers?

Yes. Run the calculator for each deductible and premium combination to see which option yields the lowest cost per call and fastest breakeven.

What if a single repair exceeds the payout cap?

Add the uncovered portion into the denial rate percentage to reflect the extra out-of-pocket cost in the expected savings.

Does this include routine maintenance?

No. Include only covered repairs or replacements; routine maintenance visits should be excluded from expected claim counts.

Additional Information

  • Net savings compares warranty cost to paying for repairs out of pocket at the average reimbursement amount.
  • Breakeven calls show how many approved claims are required before the warranty delivers positive value.
  • Expected approved claims multiply total claims by one minus the denial rate to show realistic payouts.
  • Warranty cost per call includes premium, deductibles, and expected denied-claim expenses.
  • Denied claims are treated as full-cost repairs borne by the homeowner within the model.

Related calculators