HSA vs FSA Calculator
Free HSA vs FSA calculator — compare tax savings, contribution limits, rollover rules, and forfeiture risk for health accounts.
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How it works
Enter marginal tax rate, coverage type, expected medical expenses, and employer HSA contributions to compare HSA vs health FSA tax benefit.
About HSA vs FSA Calculator
Informational only — not professional advice. Report an error.
Pre-tax health accounts reduce your tax bill on medical spending, but Health Savings Accounts (HSAs) and health Flexible Spending Accounts (FSAs) follow different rules, limits, and risks. Choosing wrong can mean forfeiting hundreds of dollars in an FSA or missing triple tax benefits available through an HSA-qualified high-deductible health plan. Both let you pay for copays, prescriptions, and eligible expenses with money that never hit your income tax.
HSAs require enrollment in a qualifying HDHP — a high-deductible health plan with minimum deductible thresholds set by the IRS each year. They allow annual contributions up to IRS limits (plus catch-up at age 55+), and roll over indefinitely — unused funds stay yours and can even be invested for retirement medical costs. Employer seed contributions count toward the limit but still reduce your taxable income when the employer contributes on your behalf.
Health FSAs are employer-sponsored accounts with lower annual limits and a use-it-or-lose-it design, mitigated slightly by an IRS carryover allowance ($660 in 2026) that lets you roll a small balance into the next plan year. Over-contributing to an FSA relative to known expenses creates forfeiture risk that this calculator estimates explicitly. You generally cannot max both a general-purpose health FSA and an HSA simultaneously.
At a 32% combined marginal rate, contributing $2,000 to an HSA saves roughly $640 in taxes with no forfeiture if you stay healthy. The same $2,000 in an FSA saves similar taxes but risks losing unused dollars above the carryover cap. HDHP eligibility is the gate — without it, FSA may be your only pre-tax option through work. Limited-purpose FSAs restricted to dental and vision expenses are a common pairing with HDHPs.
Size FSA contributions to known copays, prescriptions, and planned procedures rather than guessing. HSAs stay with you after leaving an employer — FSAs usually do not. After age 55, HSA catch-up contributions add $1,000 per year on top of the standard limit. Pair with the Health Insurance Out-of-Pocket Calculator to size contributions against expected deductibles and prescriptions.
Quick tips
- Size FSA contributions to known copays, prescriptions, and planned procedures.
- Employer HSA contributions count toward the annual IRS limit.
- HSAs stay with you after leaving an employer — FSAs usually do not.
- Limited-purpose FSAs (dental/vision only) may pair with an HSA.
- Verify HDHP minimum deductibles each year — IRS updates qualifying thresholds.
Formulas
Tax savings ≈ contribution × marginal tax rateHSA employee room = IRS limit − employer contributionFSA forfeiture risk ≈ max(0, FSA contribution − expenses − carryover limit)
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