usefulweb.site Warranty Value Calculator

Money-saving & comparison

Warranty Value Calculator

Is the extended warranty worth it? Expected payout vs. price and break-even failure rate.

Shown in results only; no conversion is performed.

years
years

E.g. 2 years of statutory warranty in the EU; set 0 if the warranty starts after it.

%/year

Your estimate; reliability differs a lot by product and brand.

%

Exclusions (accidental damage, wear) often reduce real coverage.

Try an example: TV: 3-year plan over a 2-year legal warranty · Phone: 2-year protection with deductible

How it works

Enter the warranty price, how many years it covers, what is already covered by the legal or manufacturer warranty, a failure probability, repair cost, deductible and the chance a claim is approved. The calculator shows the expected payout, the expected net value and the failure rate at which the warranty would break even.

  • Effective years = coverage years − years already covered by the legal/manufacturer warranty (floored at 0); during the overlap the extended warranty adds nothing for defects.
  • Payout per claim = min(average repair cost, item price) − deductible, floored at 0 (a repair costing more than the item is replaced instead).
  • Expected approved claims = effective years × annual failure probability × approval probability (at most one failure per year, years independent).
  • Expected payout = expected approved claims × payout per claim; expected net value = expected payout − warranty price.
  • Probability of at least one approved claim = 1 − (1 − p × a)^years, with p = annual failure probability and a = approval probability.
  • Break-even failure probability = warranty price ÷ (effective years × approval probability × payout per claim).
  • Verdict: worth it if net value > +10% of the warranty price, not worth it if < −10%, otherwise marginal.

For scripts and AI agents

  • JSON API: POST https://warrantyvaluecalculator.usefulweb.site/api/v1/calculate (same calculation as this page)
  • Interface description: OpenAPI 3.1 · AI guide: llms.txt
  • MCP server (Streamable HTTP): https://warrantyvaluecalculator.usefulweb.site/mcp · tool name warranty_value_calculator
Example request
curl -s -X POST https://warrantyvaluecalculator.usefulweb.site/api/v1/calculate \
  -H 'content-type: application/json' \
  -d '{"currency":"EUR","itemPrice":900,"warrantyPrice":99,"coverageYears":3,"overlapYears":2,"annualFailureProbabilityPercent":5,"averageRepairCost":300,"deductible":0,"claimApprovalPercent":80}'
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