Homeowner Cost Lab
Home service contract calculator

Would a home warranty break even for your repairs?

Compare the plan price and service-call fees with the repair costs the contract would actually cover. Use the limits and exclusions in the written contract; this calculator does not predict which claims a company will approve.

Your contract and time period

Enter the total plan price and repair events for the same period.

Runs in this browser
This changes the label only; it does not convert values.
Keep the plan price and every repair event within this same period.
For a multi-year comparison, add the premiums you expect to pay over the full period.

Repair events to compare

For each event, enter the cash repair amount, the amount the contract would pay after its limits and exclusions, and any fee you expect to owe for the visit.

Repair or systemBill if paying cashContract would payYour visit feeRemove event

Enter the contract payment after applying its stated coverage limits, exclusions, and any existing coverage. If an event is not covered, enter 0. Only include a visit fee when the written terms say you would pay it.

Formula
Cost with contract = premiums + visit fees + repair bills not covered
Cost without contract = the full repair bills entered. The result changes with the assumptions you supply.

What this home warranty calculator compares

The tool compares two ways to pay for the repair events you enter: paying each full bill yourself, or paying the contract premiums, your visit fees, and any portion of those bills the plan would not cover. It does not assign a probability to future breakdowns.

People often use “home warranty” to describe a service contract. The Federal Trade Commission explains that these contracts cost extra and may cover only part of an item, duplicate coverage you already have, limit reimbursements, or make repairs difficult to obtain. Read the contract itself before deciding what amount to enter.

How to enter a fair comparison

  1. Choose a period and total the premiums you expect to pay during it. If renewal prices can change, treat your premium total as an assumption and run a higher-cost scenario too.
  2. Use repair estimates or bills for the specific systems and appliances in your home. Do not substitute a national average or an age-based prediction.
  3. Check which items are eligible, what the contract excludes, and any per-item or annual payout cap. Enter only the amount the plan would pay or perform after those terms apply.
  4. Add the service-call or trade-call fee you expect to owe for each visit. Follow the contract's wording; fees and claim procedures differ between plans.
  5. Compare a few plausible repair scenarios. If the outcome changes when one claim is covered, excluded, or capped, the decision depends on contract terms and uncertainty—not just the headline premium.

A made-up example to show the arithmetic

Suppose a plan costs $650 over the comparison period. Two repair bills would total $1,250 if paid directly. You enter $800 as the amount the plan would pay after its rules, plus $200 in visit fees. The plan scenario totals $650 + $200 + ($1,250 − $800) = $1,300. Under those invented figures, paying the bills directly is $50 less. These amounts are only an arithmetic example; they are not typical prices, expected claims, or advice about any plan.

What the result leaves out

The calculator cannot read your contract or decide whether a claim qualifies. It does not model waiting periods, claim delays, disputes, provider availability, repair quality, cancellations, renewal terms, or the value of having costs spread over time. It also does not compare a service contract with homeowners insurance or a manufacturer's, seller's, or builder's coverage.

If the plan may duplicate coverage already in force, check those documents before entering an expected payment. The FTC recommends looking at fees, coverage limits, exclusions, cancellation terms, and how claims are handled. Rules and consumer protections can vary by location; this page is a cost comparison, not legal or insurance advice.

For repairs that you plan to fund without a service contract, use the maintenance reserve calculator. To compare a repair with a replacement purchase, try the repair-or-replace calculator.

Source and review note

Terminology and contract-review considerations are based on the FTC's consumer guidance, “So what's the deal with home warranties?” and “Warranties for New Homes”. These sources do not establish a typical premium, repair price, claim rate, or universal value rule. Source pages checked October 2, 2026. See our calculation method, privacy notice, and disclaimer.