Cemetery Directory USA
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Prepaid Funeral vs Saving Calculator

Is it better to prepay a funeral now or to set the money aside and pay later? Enter today's price, how far away the need is, and your own assumptions for price rises and savings returns.

Contract type
Option A: prepay today
$14,300

Paid now. A guaranteed contract covers the listed goods and services at today's prices.

Option B: save and pay later
$25,753

What $14,300 set aside today grows to in 15 years, against an expected price of $22,279.

Result

At these rates, saving keeps pace: the savings would cover the future price with about $3,475 left over. Prepaying mainly buys certainty.

Break-even is when the return on savings equals the yearly price rise. This compares growth only; it does not include contract fees, cancellation refunds, taxes or the risk of the provider closing.

Year by year

YearExpected funeral priceSavings balanceDifference
0$14,300$14,300+$0
5$16,578$17,398+$821
10$19,218$21,167+$1,949
15$22,279$25,753+$3,475

How the comparison works

The calculator grows today's price by the yearly price rise to estimate the cost at the time of need, and grows the same amount of money by your savings return. If savings grow faster than prices, setting the money aside keeps pace. If prices grow faster, a guaranteed contract protects you from the difference. The year-by-year table shows when one overtakes the other.

The default price is the typical traditional burial from our burial cost calculator. Replace it with a real quote.

Questions to ask before you prepay

  • Is the price guaranteed, and exactly which goods and services does the guarantee cover?
  • Is the money held in a trust or an insurance policy, and who is the trustee or insurer?
  • What refund do I get if I cancel, and can the contract move with me if I relocate?
  • Does the contract include cemetery charges, or only the funeral home's? Plots, opening and closing and markers are often sold separately. See How to Buy a Cemetery Plot.
  • What happens to any money left over after the funeral?

The case for each option

Prepaying can lock in prices, spare the family difficult decisions, and can help with Medicaid planning, because an irrevocable funeral contract is often not counted as an asset, within limits that vary by state. Saving on your own keeps the money flexible and avoids the risk of a provider closing or a contract that cannot be moved. Many families combine the two: a plot bought ahead, with a payable-on-death account or insurance for the rest. The final expense calculator helps size that.

Updated November 8, 2026 · Built and reviewed by the Cemetery Directory USA editors.This tool runs in your browser; nothing you enter is sent to us or stored.

Frequently asked questions

What is a pre-need funeral contract?

It is an agreement with a funeral home, and sometimes a cemetery, to pay now for goods and services that will be provided at death. The money is usually held in a trust or paid into an insurance policy, under rules that vary by state.

What is the difference between a guaranteed and a non-guaranteed contract?

A guaranteed contract promises to provide the listed goods and services for the price paid, even if prices rise. A non-guaranteed contract applies the money paid, plus any growth, to the prices charged at the time of need, so the family may owe more.

Can I cancel a prepaid funeral or move it to another state?

It depends on the contract and state law. Some states require a full or partial refund on cancellation, and some contracts can be transferred to another funeral home. Ask for these terms in writing before you sign.

What happens if the funeral home closes?

Trust and insurance funding are meant to protect the money, and some states run recovery funds. Ask how your payment is held, who the trustee or insurer is, and what happens if the business is sold or closes.