Decide if an extended warranty is worth its price.
An extended warranty is a good bet only if its price is below the expected cost of the repairs it would cover. Warranties are priced to profit the seller, so they are usually poor value unless you expect an unusually high failure rate.
Extended Warranty Value
Expected repair = repair cost x chance of repair
Expected repair = repair cost x chance of repair An extended warranty is a good bet only if its price is below the expected cost of the repairs it would cover.
Warranties are priced to profit the seller, so they are usually poor value unless you expect an unusually high failure rate.
This calculator takes 4 inputs: Product price, Warranty price, Chance of repair, Typical repair cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.