Is an extended warranty worth it? Calculator
Work out whether an extended warranty or protection plan pays off: plan price vs the chance of a failure and the repair you would avoid.
Calculator using the expected-value formula with numbers you enter. How we research · How links work
The short answer
A plan pays off on average only if the failure chance is above its break-even point: plan price divided by the repair cost it covers. A $79 plan covering a $300 repair breaks even at a 26% chance of a covered failure. In the EU, check first what the two-year legal guarantee already covers.
Does your plan pay off?
Verdict
-
-
Break-even examples
A $79 plan covering a $300 repair with no excess:
| Chance of failure | Expected saving | Net result |
|---|---|---|
| 5% | $15 | -$64 |
| 10% | $30 | -$49 |
| 20% | $60 | -$19 |
| 30% | $90 | +$11 |
Before you buy a plan
Read what is excluded (accidental damage, batteries, wear), who pays for shipping and whether the plan overlaps your legal guarantee or credit card cover.
Common questions
Is an extended warranty worth it?
Only if the chance of a covered failure times the repair cost you would avoid is higher than the plan price. Plans are generally priced so the seller expects to come out ahead on average, so they mainly make sense if a surprise repair bill would be hard to pay.
What does the EU legal guarantee already cover?
In the EU, sellers must provide a legal guarantee of at least two years for goods that are faulty. An extended warranty only adds value beyond what that guarantee and the manufacturer warranty already cover.
Where do I get the failure chance?
Use your own experience with the product type, published repair statistics you trust, or the break-even figure: if you think the chance of a covered failure is below it, skip the plan.