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Extended Warranty Calculator

Is the extended warranty worth it? Calculate the expected value based on failure rates and repair costs.

Warranty is worth it when

  • Product has a known high failure rate (30%+)
  • Repair costs exceed 50% of product price
  • You cannot afford an unexpected repair
  • Warranty cost is under 10% of product price
  • The product is a used car or major appliance

Skip the warranty when

  • Your credit card extends the manufacturer warranty
  • The product is reliable (under 10% failure rate)
  • You can afford to replace it if it breaks
  • Warranty cost exceeds 15% of product price
  • The warranty overlaps with manufacturer coverage
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