Is an extended warranty worth the price?
An extended warranty transfers repair risk for an upfront fee. Expected-value math cannot measure peace of mind, but it can show whether the price is high or low relative to your estimated chance and cost of repair.
Enter your numbers
Skip it on expected value
Expected repair cost: $100.00The repair chance would need to be 35.8% for the warranty to break even.
A clearer way to compare.
Expected repair cost = repair probability × likely repair cost. Break-even probability = warranty price ÷ likely repair cost.
A $179 warranty covering a likely $500 repair needs about a 35.8% chance of a covered repair to break even. At a 20% estimate, expected repair cost is $100.
Extended Warranty FAQ
How accurate is this calculator?
The arithmetic is exact for the values you enter. The practical result depends on whether those prices, quantities, and assumptions match your purchase.
Are taxes included?
Use tax-inclusive prices when tax differs between your options. Otherwise, the comparison remains useful before tax.
Can I use euros, pounds, or another currency?
Yes. Keep every money input in the same currency. The comparison and percentages remain valid even when the displayed symbol differs.
Is any information stored?
No. The calculation runs entirely in your browser and is not sent to a database.
Know what the result means.
Ship or Spend shows the formula, assumptions, and complete comparison rather than hiding the answer behind a score. Read our calculation methodology for limitations and testing details.