Warranty Cost Calculator

Estimate warranty reserves and product liability costs

What is this? Estimate warranty reserves and product liability costs for manufacturers. Calculate claims rates and reserve requirements.

Who it's for: Business professionals, contractors, and financial planners.
Sales Volume
Cost Data
Warranty Economics
Claim Rate
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Actual Warranty Cost
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Reserve Needed
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Cost per Unit Sold
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Warranty as % of Revenue
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Projected Next Year
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For educational purposes. Not financial or legal advice.

Home & Auto Warranty Tools

Tools that pair well with this calculator — selected by our team.

Policygenius →
$50–$100/sale — home and auto warranty comparison
HomeAdvisor →
$1.50–$16/lead — home services contractors
ToolBest ForNetwork
Policygenius$50–$100/saleFlexOffers
HomeAdvisor$1.50–$16/leadFlexOffers

We may earn a commission if you click above. Calculator is free to use.

Frequently Asked Questions

Are extended warranties worth it?

Statistically, the person who buys the extended warranty is usually the one who needed it least. Extended warranties are profitable for retailers because most don't use them. They're rarely worth it for electronics that become obsolete quickly.

What does home warranty cover?

Home warranties cover major home systems (HVAC, plumbing, electrical) and appliances. Typically $300-600/year + $50-125 service fee per call. They make sense for older homes with aging systems, not for new construction or recent purchases.

What is the consumer warranty act?

The Magnuson-Moss Warranty Act requires warranties to be clearly disclosed. If a warranty is a condition of use, the warrantor must generally provide the warranty without charge. Read the fine print before paying for extended coverage.