Medicare Cost Calculator

Estimate annual Medicare costs across premiums, deductibles and adjustments.

About Medicare Cost Calculator

Income adjustments apply as cliff-edge tiers rather than gradually, so crossing a threshold by a single pound triggers the full surcharge. They are assessed on income from two years earlier. Because of the two-year lookback, a one-off income event such as selling property raises premiums two years later, when income may have fallen again.

Formula

Medicare Cost

Total = (base premiums + income adjustment) × 12 + deductibles + out-of-pocket costs

IRMAA: Income-related monthly adjustment amount, a surcharge above income thresholds
two year lookback: Income adjustments are based on tax returns from two years earlier

Worked example

With the default values below, Medicare Cost Calculator returns Total Annual Medicare Cost of $6,964.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Modified adjusted gross incomeminimum 0: 110,000
Part B base premiumminimum 0: 185
Part D premiumminimum 0: 38
Annual deductiblesminimum 0: 1,900
Expected other out-of-pocket costsminimum 0: 1,500

Results

Total Annual Medicare Cost: $6,964.00
Total Monthly Premiums: $297.00
Income-Related Monthly Surcharge: $74.00
Annual Premium Cost: $3,564.00
Income Adjustment Tier: First income adjustment tier

Step by step

1Values used
2Medicare Cost
3Total Annual Medicare Cost= 6,964.00
4Total Monthly Premiums= 297.00
5Income-Related Monthly Surcharge= 74.00
6Annual Premium Cost= 3,564.00
7Income Adjustment Tier= First income adjustment tier

Assumptions and limits

The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is a general illustration, not financial, tax or legal advice. Rules, thresholds and rates vary by jurisdiction and change frequently, and individual circumstances materially affect outcomes. Consult a qualified adviser before making any decision based on these figures.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

This is a general illustration, not financial, tax or legal advice. Rules, thresholds and rates vary by jurisdiction and change frequently, and individual circumstances materially affect outcomes. Consult a qualified adviser before making any decision based on these figures.

Frequently Asked Questions

How is Medicare Cost calculated?

Total = (base premiums + income adjustment) × 12 + deductibles + out-of-pocket costs Income adjustments apply as cliff-edge tiers rather than gradually, so crossing a threshold by a single pound triggers the full surcharge. They are assessed on income from two years earlier.

Why does Medicare Cost matter?

Because of the two-year lookback, a one-off income event such as selling property raises premiums two years later, when income may have fallen again.

What values do I need to enter?

This calculator takes 5 inputs: Modified adjusted gross income, Part B base premium, Part D premium, Annual deductibles, Expected other out-of-pocket costs. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.