FSA Contribution Calculator

About this calculator

A Flexible Spending Account (FSA) lets US employees set aside part of their paycheck, before income and payroll taxes are calculated, to pay for eligible medical or dependent-care expenses — which effectively gives you a discount on those costs equal to your marginal tax rate. Your annual election is capped at an IRS-set limit that’s adjusted for inflation each year, and whatever amount you elect is divided evenly across your paychecks for the plan year as a per-paycheck payroll deduction.

Because most FSAs are “use it or lose it” — unspent funds are forfeited at year-end, though many employers allow a small carryover or a short grace period — employees have to estimate their coming year’s medical expenses carefully rather than over-contributing. HR and benefits teams point employees to this kind of calculation during open enrollment. This calculator takes your expected medical expenses and returns a suggested annual contribution (capped at the IRS limit), the resulting per-paycheck deduction, and the estimated tax savings from paying with pre-tax dollars.