FSA Calculator
Find your FSA tax savings and per-paycheck cost.
Default 24 (semi-monthly)
Results update as you type.
This calculator is for illustrative purposes only. Actual rates, fees and terms vary by lender. Consult a qualified financial adviser before making borrowing decisions.
How it works
A Flexible Spending Account (FSA) lets you set aside pre-tax money from your paycheck to pay for eligible healthcare or dependent-care costs, and this calculator shows how much you save in taxes and what it actually costs you. You enter your annual election, your marginal tax rate, and how many paychecks you receive per year, and it returns your annual tax savings, the net cost after those savings, and the amount deducted from each paycheck. Because the money is taken before income and payroll taxes, every dollar you route through an FSA effectively costs less than a dollar of after-tax spending, so a 25 percent marginal rate turns a $3,000 election into just $2,250 of real cost. The catch is the use-it-or-lose-it rule: FSAs generally require you to spend the funds within the plan year, though some plans allow a small carryover or a short grace period. That makes it important to elect an amount close to your expected eligible spending — enough to capture the tax break without forfeiting unused money. Health FSAs and dependent-care FSAs have separate annual limits set by the IRS and employer plans. Enter your election and tax rate to see your savings.
Tax savings = election × marginal rate; net cost = election − savings
Because FSA contributions come out of your pay before taxes, you save your marginal tax rate on the full elected amount. The tax savings equal the election times that rate, the net cost is the election minus the savings, and dividing the election by the number of paychecks gives the amount deducted each pay period.
Source:IRS FSA rules (Publication 969)
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter annual fsa election and marginal tax rate.
- 2
Adjust the options
Adjust paychecks per year if they apply — sensible defaults are already set.
- 3
Read your result
Annual tax savings updates instantly as you type — no button to press.
Frequently asked questions
How much can an FSA save me?
You save your marginal tax rate on every dollar contributed, because FSA money is deducted pre-tax. Electing $3,000 at a 25 percent combined marginal rate saves about $750, so the coverage effectively costs you only $2,250. The calculator shows your exact savings and net cost based on your election and tax rate.
What is the use-it-or-lose-it rule?
FSAs generally require you to spend your contributions within the plan year, or you forfeit whatever remains. Some employer plans soften this with a carryover of a limited amount to the next year or a grace period of a few months. Because of this rule, it is important to elect close to what you realistically expect to spend.
How is an FSA different from an HSA?
An FSA is employer-owned, usually has a use-it-or-lose-it rule, and does not require a specific health plan, while an HSA is yours to keep, rolls over indefinitely, can be invested, and requires a high-deductible plan. Both use pre-tax dollars, but the HSA is far better for long-term saving, whereas the FSA suits predictable annual expenses.
How much should I contribute to my FSA?
Elect an amount close to your expected eligible spending for the year, such as recurring prescriptions, copays, dental, vision, or dependent care. Contributing too little leaves tax savings on the table, while contributing too much risks forfeiting funds under use-it-or-lose-it. Reviewing last year's out-of-pocket medical and care costs is a good way to estimate.
What can I spend FSA money on?
Health FSAs cover qualified medical expenses like copays, deductibles, prescriptions, dental and vision care, and many over-the-counter items. Dependent-care FSAs cover eligible childcare or elder-care costs that let you work. Eligible expenses are defined by the IRS and your plan, so check your plan's list before electing to be sure your costs qualify.