Select cost per claim, total claim cost, or number of claims, then enter the two required values. Results retain up to six decimal places, with calculation details.
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Cost Per Claim Formula
The basic cost per claim formula divides the total cost of all claims by the number of claims.
- CPC = cost per claim
- TC = total cost of all claims
- N = number of claims
The calculator can also rearrange the same relationship to solve for total cost or number of claims.
- To calculate cost per claim: select Cost per claim and enter total cost and number of claims.
- To calculate total cost: select Total cost and enter cost per claim and number of claims.
- To calculate number of claims: select Number of claims and enter total cost and cost per claim.
Cost Per Claim Inputs and Result Checks
Use these tables to check whether your entries are set up correctly and to understand what your result represents.
| What you want to find | Enter these values | Solve mode | Formula used |
|---|---|---|---|
| Cost per claim | Total cost and number of claims | Cost per claim | Total cost ÷ number of claims |
| Total cost | Cost per claim and number of claims | Total cost | Cost per claim × number of claims |
| Number of claims | Total cost and cost per claim | Number of claims | Total cost ÷ cost per claim |
| Result pattern | What it usually means |
|---|---|
| Cost per claim increases | Claims are becoming more expensive on average, even if the claim count stays the same. |
| Cost per claim decreases | Average included cost is lower. Compare the same cost definition and claim group before attributing the change to severity or claim mix. |
| Total cost increases while cost per claim is stable | The increase is mostly driven by a higher number of claims. |
| Claim count result is a decimal | The result is a mathematical estimate. Actual claim counts are normally whole numbers; do not round an estimate into an observed count. |
Example Cost Per Claim Calculations
Example 1: Calculate cost per claim
You have a total claim cost of $48,000 and 120 claims.
The cost per claim is $400.00.
Example 2: Calculate total cost
You know the cost per claim is $275 and there are 80 claims.
The total cost of all claims is $22,000.00.
Cost Per Claim Calculator FAQ
What should be included in total cost of all claims?
Use the same cost definition for every claim in the group. Depending on your purpose, total cost may include paid losses, reserves, adjustment expenses, administrative costs, or only direct claim payments. The key is consistency. If you include fees for one period or claim group, include the same type of fees for the comparison group.
Can the number of claims be a decimal?
Actual claim counts are usually whole numbers. However, the calculator may return a decimal when you solve for number of claims because it is using division. Treat that result as a mathematical estimate unless you have a reason to work with fractional claim units.
Why is my cost per claim different from another report?
The most common reason is a different definition of total cost or a different claim count. One report may include only closed claims, while another includes open and closed claims. One may include claim handling expenses, while another uses only paid claim amounts. Check the cost basis, date range, and claim population before comparing results.
