FSA Calculator

Limit	Healthcare FSA	Dependent-care FSA
2026 election cap	$3,400	$7,500 ($3,750 if married filing separately)
2025 election cap	$3,300	$5,000 ($2,500 if MFS)
2026 carryover	Up to $680 rolls over	Not allowed
2025 carryover	Up to $660 rolls over	Not allowed
Grace period	Up to 2½ months (if plan offers)	Up to 2½ months (if plan offers)
Eligible expenses	Copays, prescriptions, dental, vision, OTC meds	Daycare, preschool, before/after-school, day camp
Funds available	Full election available day 1	Only as contributions accrue

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Walk-through

How to Use This Calculator

4 steps

1

Choose your plan and year

Choose healthcare or dependent care and the plan year. Enter employer limits, confirmed opening carryover and either carryover or grace-period terms; statutory limits do not guarantee your own permitted election.

2

Enter the election and eligible spending

Enter planned salary reduction and realistic eligible expenses. Add annual payroll wages and, for dependent care, employee and spouse earned income after excluded care benefits. Confirm eligibility and plan deadlines.

3

Set tax and payroll assumptions

Set marginal federal/state rates and pay periods; choose whether to model payroll-tax savings. Compare the gross deduction with the take-home reduction. These estimates do not replace a household tax return.

4

Compare, then choose saving or sharing

Compare editable lower, base and higher spending, then move the election marker. Remember saves only by choice; Share and Embed first show a review with financial values off. Use CSV or Print to retain the assumptions.

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Reference

Formula & Methodology

4 formulas

Annual tax savings

taxSaving = effectiveElection × (federalRate + stateRate) + payrollBefore − payrollAfter

Federal/state savings use entered rates; payroll compares wages before and after the election, including the Social Security cap and employer Additional Medicare withholding. This is not a full household tax return.

Per-paycheck deduction

perPaycheck = election ÷ payPeriods

Your annual election is spread evenly across your paychecks (e.g. 26 for biweekly, 24 for semi-monthly). A healthcare FSA makes the full election available on day 1 even though you fund it gradually.

Net cost of the benefit

netCost = election − savings

What the elected benefit actually costs you out of pocket once the tax break is applied. A $3,000 election at a 34.65% combined rate costs about $1,960.

Forfeiture (use-it-or-lose-it)

forfeiture = max(0, election + openingCarryover − expenses − protectedCarryover − graceUsed)

Opening health carryover is separate from new salary reduction. Subtract eligible expenses, then either permitted next-year carryover or entered grace-period spending. Net benefit is tax saving minus projected forfeiture.

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YMYL

Trust, Methodology & Sources

Written by Calculover Editorial Team · Updated 2026-08-11 · 4 sources

Editorial accountability

Author: Calculover Editorial Team - Personal finance content

Owner: Calculover Editorial Team - Methodology review

Last reviewed: 2026-08-11

Last verified: 2026-10-18

Methodology

Federal/state savings use entered rates; payroll compares wages before and after the election, including the Social Security cap and employer Additional Medicare withholding. This is not a full household tax return. Opening health carryover is separate from new salary reduction. Subtract eligible expenses, then either permitted next-year carryover or entered grace-period spending. Net benefit is tax saving minus projected forfeiture.

Assumption: Federal/state savings use entered rates; payroll compares wages before and after the election, including the Social Security cap and employer Additional Medicare withholding. This is not a full household tax return.

Assumption: The plan year matches the IRS limit selected, and the plan offers the rollover option chosen (carryover, grace period, or neither).

Assumption: Expected eligible expenses are the user's own estimate; the calculator does not verify whether specific expenses qualify.

Limitations & guidance

Employer funding, state-specific rules, a full household return, dependent-care credit coordination and custody/eligibility adjudication are excluded. Entered earned income and employer limits constrain modeled DCAP room.

Results depend on the rates and expense estimates you enter — actual tax savings and forfeiture will differ. Confirm your plan's carryover, grace period, and eligible-expense rules in your benefits documents.

Opening health carryover is separate from new salary reduction. Subtract eligible expenses, then either permitted next-year carryover or entered grace-period spending. Net benefit is tax saving minus projected forfeiture.

Professional guidance: This calculator is for educational purposes only and is not financial, tax, or legal advice. Confirm current FSA limits at IRS.gov and consult your benefits administrator or a qualified tax professional before making election decisions.

Primary sources

IRS Rev. Proc. 2025-32 — 2026 health FSA limits and carryover

IRS — Publication 15-B (2026), Employer's Tax Guide to Fringe Benefits

IRS — Publication 969, Health Flexible Spending Arrangements

IRS — Publication 503, Child and Dependent Care Expenses

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Glossary

Key Terms Explained

6 terms

Flexible Spending Account (FSA) An employer-sponsored account funded with pre-tax salary reduction that you use to pay for eligible healthcare or dependent-care expenses. Lowering your taxable wages is what creates the savings.

Election The total dollar amount you commit to contribute for the plan year, chosen during open enrollment. For 2026 the healthcare FSA election is capped at $3,400; dependent care at $7,500 ($3,750 if married filing separately).

Use-it-or-lose-it The IRS rule that FSA funds not spent by the plan deadline are forfeited, unless the plan offers a carryover or a grace period. It's the main reason to elect carefully.

Carryover A healthcare-FSA feature that lets up to a capped amount of unused funds roll into the next plan year ($680 for 2026). Dependent-care FSAs cannot carry over. A plan can offer a carryover or a grace period, but not both.

Grace period An optional extension of up to 2½ months after the plan year ends during which you can still incur and claim expenses against the prior year's balance.

FICA Employee payroll tax includes Social Security up to the wage base, Medicare and possible Additional Medicare withholding. Salary reductions do not always save7.65%.

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Scenarios

Real-World Examples

3 worked examples

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Predictable spender

$3,000 healthcare FSA, expenses match

FSA type Healthcare Election $3,000 Expected expenses $3,000 Combined rate 34.65%

At $100,000 payroll wages,22% federal and5% state, a $3,000 election saves $1,039.50. Net cash cost is $1,960.50: $115.38 gross deduction and $75.40 take-home reduction per26checks. With $3,000 eligible spending, projected forfeiture is zero.

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Over-elector

$3,000 elected, only $2,000 in expenses

Election $3,000 Expected expenses $2,000 Rollover Carryover ($680) At risk $320

At the same34.65% wage/rate assumptions,$3,000 elected and$2,000 spent leave$680 carryover and$320 forfeiture. Net benefit is$719.50. Reducing the election to$2,680 gives$928.62 tax saving with zero modeled forfeiture; future carryover use is still conditional.

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Working parents

$5,000 dependent-care FSA

FSA type Dependent care Election $5,000 Expected expenses $5,000 Combined rate 34.65%

With sufficient employee/spouse earned income and$100,000 payroll wages,$5,000 eligible DCAP spending at22% federal/5% state saves$1,732.50 before care-credit interaction. This is a chosen election, below the2026$7,500 joint ceiling; MFS ceiling is$3,750.

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Reference

Cite This Calculator

APA & MLA

Use either format to cite this calculator in a paper, report, or resource list.

APA

MLA

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Deep Dive

How to Decide How Much to Put in Your FSA

4 chapters · 3 min read

Opening health carryover is separate from new salary reduction. Subtract eligible expenses, then either permitted next-year carryover or entered grace-period spending. Net benefit is tax saving minus projected forfeiture.

How the FSA Calculator works

Federal/state savings use entered rates; payroll compares wages before and after the election, including the Social Security cap and employer Additional Medicare withholding. This is not a full household tax return.

FSA vs HSA — which is which

An HSA generally requires eligible high-deductible coverage and other conditions. A general-purpose health FSA generally prevents HSA contributions; certain limited-purpose or post-deductible arrangements can be compatible. A dependent-care FSA covers a separate category of eligible care, and this calculator does not decide HSA eligibility.

Eligible expenses and avoiding forfeiture

Start with expected eligible expenses minus opening carryover. A plan-dependent upper election adds confirmed outgoing carryover only. Future eligible expenses and continued plan participation matter; carryover does not guarantee against loss.

Limits and edge cases

Selected2025/2026 limits come from one sourced policy pack. Employer limits and entered DCAP earned income may reduce room. Healthcare carryover is660/680 into the following year; DCAP has no health carryover. Credit coordination, state rules and employer funding are excluded.

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Questions

Frequently Asked Questions

7 questions

How much should I put in my FSA?+

Start with expected eligible expenses minus opening carryover. A plan-dependent upper election adds confirmed outgoing carryover only. Future eligible expenses and continued plan participation matter; carryover does not guarantee against loss.

What is the FSA contribution limit for 2026?+

For 2026 the healthcare FSA salary-reduction limit is $3,400 (up from $3,300 in 2025), with a carryover of up to $680. The dependent-care FSA limit is $7,500 per household, or $3,750 if married filing separately. You can contribute to both a healthcare and a dependent-care FSA in the same year.

What's the difference between an FSA and an HSA?+

An HSA generally requires eligible high-deductible coverage and other conditions. A general-purpose health FSA generally prevents HSA contributions; certain limited-purpose or post-deductible arrangements can be compatible. A dependent-care FSA covers a separate category of eligible care, and this calculator does not decide HSA eligibility.

What happens to FSA money I don't spend?+

Under the use-it-or-lose-it rule, unspent funds are forfeited at the end of the plan year — unless your plan offers a carryover (healthcare FSA only, up to $680 for 2026) or a grace period (up to 2½ extra months to incur expenses). A plan can offer one or the other, not both. Dependent-care FSAs can never carry over but may offer a grace period.

How does an FSA actually save me money?+

Federal/state savings use entered rates; payroll compares wages before and after the election, including the Social Security cap and employer Additional Medicare withholding. This is not a full household tax return.

What expenses are FSA-eligible?+

Healthcare FSAs cover copays, deductibles, prescriptions, dental and vision care, and many over-the-counter medicines and supplies. Dependent-care FSAs cover daycare, preschool, before- and after-school care, and day camp for children under 13 (or care for a disabled dependent) that lets you work. Check your plan's specific list — eligibility can vary slightly by employer.

Can I share my results?+

Share and Embed first show a review with financial values excluded. Include your plan, income and spending assumptions only if you choose; anyone with the resulting link or code can read them. Remember is a separate choice to save this browser’s valid plan.

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1. Choose your plan

2. Set your election

3. Estimate eligible spending

Compare spending and election choices

Review before sharing

How to Use This Calculator

Choose your plan and year

Enter the election and eligible spending

Set tax and payroll assumptions

Compare, then choose saving or sharing

Formula & Methodology

Trust, Methodology & Sources

Key Terms Explained

Real-World Examples

Predictable spender

Over-elector

Working parents

Cite This Calculator

How to Decide How Much to Put in Your FSA

How the FSA Calculator works

FSA vs HSA — which is which

Eligible expenses and avoiding forfeiture

Limits and edge cases

Frequently Asked Questions

Get a branded PDF of your results

FSA Calculator

1. Choose your plan

2. Set your election

3. Estimate eligible spending

Compare spending and election choices

How to Use This Calculator

Choose your plan and year

Enter the election and eligible spending

Set tax and payroll assumptions

Compare, then choose saving or sharing

Formula & Methodology

Trust, Methodology & Sources

Key Terms Explained

Real-World Examples

Cite This Calculator

How to Decide How Much to Put in Your FSA

How the FSA Calculator works

FSA vs HSA — which is which

Eligible expenses and avoiding forfeiture

Limits and edge cases

Frequently Asked Questions

Get a branded PDF of your results

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