Claim Payout After Deductible

All versionsMAX

A claim pays the loss minus the deductible, never below zero and never above the policy limit. Two clamps — floor at zero, cap at the limit — turn a raw loss into the actual payout.

Quick formula: payout from loss, deductible, and limit:

=MIN(MAX(loss - deductible, 0), policy_limit)

Subtract the deductible, floor at zero so a small loss pays nothing, then cap at the policy limit.

Functions used (tap for the full reference guide):

MAX MIN

The example

$8,000 loss, $1,000 deductible, $25k limit.

	A	B
1	Item	Value
2	8000 − 1000	$7,000
3	Capped at 25k	→ $7,000

The formula

The formula:

=MIN(MAX(loss - deductible, 0), policy_limit) // loss − deductible, floored and capped

How it works

How it works:

Subtract the deductible from the loss — the insured’s share.
MAX(…, 0) floors it: a loss below the deductible pays nothing.
MIN(…, limit) caps it at the policy limit.
The result is the insurer’s payout; the insured keeps deductible + any amount over the limit.

Illustrative math only — not insurance, financial, or legal advice. Policy language, state regulation, and carrier rules govern actual claims, premiums, and coverage. Always read the policy and consult a licensed professional.

Try it: interactive demo

Live demo

Loss, deductible, policy limit.

Loss

Deductible

Limit

Payout:

Variations

Insured's share

What they keep:

=loss - payout

Without a limit

Just the deductible:

=MAX(loss - deductible, 0)

Percent deductible

Deductible as % of value:

=MAX(loss - value*deductible_pct, 0)

Pitfalls & errors

Floor and cap. MAX at 0 and MIN at the limit — both clamps matter.

Per-claim vs annual. Know whether the deductible resets each claim or per year.

Not advice. Policy terms govern the real payout.

Practice workbook

📊

Download the free Claim Payout After Deductible practice workbook

A claim-payout sheet with the insured-share, no-limit, and percent-deductible variants, plus 4 challenges with answers. No sign-up required.

Frequently asked questions

How do I calculate an insurance payout in Excel?

Loss minus deductible, floored and capped: =MIN(MAX(loss - deductible, 0), policy_limit). An $8,000 loss with a $1,000 deductible pays $7,000.

Why floor at zero?

A loss smaller than the deductible pays nothing — MAX(..., 0) prevents a negative payout.

What does the insured pay?

The deductible plus anything above the policy limit: loss - payout.

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Function references: MAX MIN