Pet Insurance Value Calculator

Work out pet insurance value instantly with clear inputs, formula shown and shareable results.

About Pet Insurance Value Calculator

Expected payout is the claim probability times the claim value less the excess, and the expected value of the policy is that payout minus the annual premium. Insurance is normally expected to lose money on average; its value is capping a catastrophic bill, which is why the break-even chance matters more than the sign of the expected value.

Formulas

Expected value

EV = claim chance x (average claim - excess) - annual premium

Break-even chance

chance = annual premium / (average claim - excess)

Worked example

With the default values below, Pet Insurance Value Calculator returns Expected annual value of the policy of -$245.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Monthly premiumminimum 0.01: 35
Excess per claimminimum 0: 100
Chance of claiming in a yearaccepts 0.1–100 %: 35 %
Average claim valueminimum 0.01: 600

Results

Expected annual value of the policy: -$245.00
Annual premium: $420.00
Expected payout after the excess: $175.00
Claim chance needed to break even: 84.00%

Step by step

1Values used
2Expected value
3Break-even chance
4Expected annual value of the policy= -245.00
5Annual premium= 420.00
6Expected payout after the excess= 175.00
7Claim chance needed to break even= 84.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency 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.

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

Frequently Asked Questions

How is the Pet Insurance Value figure worked out?

EV = claim chance x (average claim - excess) - annual premium. Expected payout is the claim probability times the claim value less the excess, and the expected value of the policy is that payout minus the annual premium.

Why does this matter?

Insurance is normally expected to lose money on average; its value is capping a catastrophic bill, which is why the break-even chance matters more than the sign of the expected value.

What do I need to enter?

Enter monthly premium, excess per claim, chance of claiming in a year, average claim value. The defaults shown are a realistic worked example — swap in your own figures to get a result you can use.