Warranty Value Calculator
Determine if an extended warranty is worth the cost based on item failure rates, repair costs, and warranty price.
Expected Value of Warranty
-$42.54
Worth It?
0
Inputs
$
$
years
% / yr
$
Comparison
Expected Repair Cost (No Warranty)
$77.46
Warranty Cost
$120
Break-Even Failure Rate
13.1%
Annual failure rate at which the warranty becomes worth it
Financial Summary
How to Use This Calculator
- Enter the Item Price and the Warranty Cost for the extended protection plan.
- Enter the Warranty Length in years and your Estimated Annual Failure Rate.
- Enter the Average Repair Cost if a failure occurs without warranty coverage.
- Review Expected Value of Warranty — a negative value means the warranty costs more than the expected benefit.
- Check Break-Even Failure Rate and the Worth It recommendation to decide whether to purchase coverage.
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