Health Insurance Affordability Calculator
What share of your income a health premium eats — and whether it crosses the ACA affordability line where marketplace subsidies may kick in.
Your details
Rough figures are fine — you can refine later.
How we calculate this
A simple ratio with a benchmark flag.
1. Share of income. Monthly premium ÷ net monthly income (equivalently, annual premium ÷ annual income).
2. Flag. We compare that share to the ACA affordability benchmark (9.96% for the current plan year). Above it, marketplace subsidies are plausible and we say so.
This is a directional signpost, not an eligibility determination. Exact subsidy amounts depend on household size, precise income, and your local benchmark plan — check the marketplace. Not financial or tax advice.
Primary sources
- HealthCare.gov — Marketplace and premium tax credits
- IRS — Premium Tax Credit (Form 8962)
- IRS Publication 974, Premium Tax Credit
Is your health insurance eating too much of your income?
Without an employer footing most of the bill, freelancers face the full sticker price of health coverage — and it's easy to end up paying a share of income that would qualify you for help you didn't know existed. This calculator does one quick, useful thing: it shows what your premium costs as a percentage of your income and flags whether you've crossed the ACA affordability line.
Enter your monthly premium and net monthly income. You get the share of income your coverage consumes and whether it's above the benchmark where marketplace subsidies become likely.
What the affordability benchmark means
The Affordable Care Act uses a percentage-of-income threshold to decide who qualifies for premium tax credits. When the cost of benchmark coverage exceeds that percentage of your household income, you may be eligible for subsidies that lower your premium — sometimes dramatically. This tool compares your premium to that line as a first signal. It's the difference between "probably worth applying on the marketplace" and "probably not eligible, but check anyway."
What this tool does not do
It does not calculate your subsidy. The actual premium tax credit depends on your household size, your exact annual income, the benchmark plan in your specific area, and more — math that lives on HealthCare.gov or your state exchange. Treat an "unaffordable" flag here as a prompt to go apply, not as a dollar figure. Because income and household details vary, two people paying the same premium can get very different results.
The deduction angle
Even if you don't qualify for a subsidy, you're probably not stuck paying full freight after tax. Self-employed people can usually deduct their health premiums against income tax, up to their net profit — which effectively discounts your coverage by your tax bracket. One caveat: you can't double-dip. Premiums covered by a marketplace subsidy aren't also deductible; only your out-of-pocket portion is. Our SE Health Insurance Deduction calculator handles that math.
So the decision tree is simple: if this tool flags your premium as unaffordable, check the marketplace for a subsidy first. Whatever you still pay out of pocket, run through the deduction tool to recover more at tax time.
What this is
A directional signpost, not an eligibility determination. Enter a representative monthly income for a quick read; the official benchmark is based on annual household income. Not tax or financial advice — the marketplace makes the actual subsidy determination.
Common questions
What counts as unaffordable health insurance? + −
The ACA uses an affordability benchmark — a percentage of household income — to decide who qualifies for help. When your premium for benchmark coverage exceeds that percentage, you may be eligible for premium tax credits on the marketplace. This tool compares your premium to that line as a first signal; it does not compute your exact subsidy.
Does this calculate my subsidy? + −
No. Premium tax credits depend on household size, exact income, your local benchmark plan, and more — that math lives on the marketplace itself. This tool tells you whether you are on the side of the line where a subsidy is plausible, so you know whether it is worth applying.
Can I deduct my premiums instead? + −
Often yes. Self-employed people can usually deduct health insurance premiums against income tax (the self-employed health insurance deduction), up to their net profit. Note you cannot double up: premiums covered by a marketplace subsidy are not also deductible. Use our SE Health Insurance Deduction tool for that math.
What income figure should I use? + −
Use your net monthly income — roughly take-home or net profit. The affordability benchmark is technically based on household income for the year; entering a representative monthly figure gives you a quick, directional read.
Keep going
Prepared for tax year 2026. Every rate and cap on this page cites a primary IRS or SSA source. Estimates only — not tax or financial advice. — for planning purposes only, not tax, legal, or financial advice.