Life Insurance Calculator
Estimate a life insurance coverage gap by weighing your family’s needs against savings and coverage you already have.
- 2026 figures, checked October 26, 2026
- Private: runs in your browser
- How we check our work
Result
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Verify before you act: review these results with a licensed insurance professional before making any decision based on them.
Suggestions for your numbers
Updated as you type, from your inputs only. General information, not personal advice; confirm any change with a qualified professional.
See it over time
Hover over or tap the chart to see the numbers for any point.
What is a life insurance calculator?
A life insurance calculator estimates how much coverage may be needed to help support your family if you die. To answer “how much life insurance do I need,” this calculator uses the DIME method: debts, income, mortgage and education. It also includes final expenses, savings and existing life insurance.
The estimate adds the costs and income support you enter, then subtracts savings and existing coverage. It is a planning figure, not a quote or a recommendation for a particular policy. Your family’s needs may change as debts, income, dependents and savings change.
Why life insurance coverage matters
Life insurance can provide money for people who depend on your income. A coverage estimate can help you decide whether to review a policy, compare coverage options or discuss a gap with an insurance professional.
The calculation also helps connect coverage to practical plans. You can consider whether your family could manage the mortgage, pay other debts, cover education costs and replace income for the period you enter. Include only savings you expect could be used for those needs.
How to use this life insurance calculator
- Enter the yearly income you want to replace and the number of years you want it replaced. Use an amount that reflects your family’s needs rather than assuming every dollar of your income must be replaced.
- Add debts other than the mortgage, the mortgage balance, expected education costs and final expenses. Avoid counting the same cost in more than one field.
- Enter savings and investments that could help meet these needs, then add existing life insurance coverage. Do not count assets or policies you do not expect your family to be able to use.
- Review the estimated coverage gap and each line in the breakdown. Adjust the inputs if your plans or financial details change.
Life insurance calculator example
Worked example
With yearly income to replace of $80,000 for 10 years, debts of $20,000, a mortgage balance of $250,000, future education costs of $100,000 and final expenses of $15,000, estimated needs total $1,185,000. Subtract $50,000 in savings and investments and $100,000 in existing life insurance. The estimated coverage gap is $1,035,000. The breakdown is debts $20,000; income replacement (10 years) $800,000; mortgage payoff $250,000; education $100,000; final expenses $15,000; minus savings and existing coverage -$150,000; coverage gap $1,035,000.
How to read your life insurance result
The coverage gap is the calculator’s estimate of needs not covered by the savings and insurance you entered. Check the rows to see which costs drive the total. Income replacement may be a large part of the estimate when you select a longer period or higher income.
The result depends on your inputs and does not account for every family circumstance. It does not tell you which policy type to buy or what a policy will cost. Confirm your estimate and coverage options with a qualified insurance professional.
How to improve your coverage estimate
- 01
Use current financial details
Check your mortgage balance, debt statements, savings and policy documents before entering amounts. Update the estimate after a major change in income, debt or family plans.
- 02
Separate needs from available resources
Count savings only if they are realistically available for your family’s needs. Check that existing coverage is current and that you have not counted the same policy or expense twice.
- 03
Review what the estimate leaves out
Consider how your family would handle expenses or plans not captured by the fields. Discuss those needs, policy terms and affordability with a qualified insurance professional.
Common life insurance calculator mistakes
Counting income as a lump sum without checking the period
The calculator multiplies yearly income by the years you enter. Review both inputs and choose a replacement period that fits your family’s plan.
Leaving out existing coverage or usable savings
These amounts reduce the estimated gap. Check policy records and include only savings you expect could help pay the listed needs.
Treating the estimate as a policy recommendation
The result is a starting point for discussion, not a quote or a substitute for reviewing policy terms and your family’s circumstances.
The life insurance formula
Need = debts + income x years + mortgage + education + final expenses - savings - existing coverage.
Key terms
- DIME method
- A way to estimate life insurance needs by adding debts, income replacement, mortgage costs and education costs.
- Coverage gap
- The estimated needs remaining after subtracting savings and existing life insurance from the total entered needs.
- Income replacement
- The income amount entered multiplied by the number of years you want it replaced.
Life insurance questions
What does DIME stand for?
DIME stands for debts, income, mortgage and education. The calculator adds these needs, includes final expenses, then subtracts savings and existing life insurance.
Does the calculator include savings and existing coverage?
Yes. Enter savings and investments that may be available for your family, along with existing life insurance. The calculator subtracts both from the total estimated needs.
Is the result the amount of insurance I should buy?
No. It is an estimate based on the information you enter. Review your circumstances and policy choices with a qualified insurance professional.
Before you act on this result. Cordwell calculators and guides are educational estimates, not legal, tax, investment, lending or other professional advice. They rely on the numbers you enter and on simplified rules, and they can't see your full situation. Before you file, sign, borrow, invest, hire, change your withholding or form a business based on anything here, meet with a licensed insurance professional who can review your specific facts and confirm the numbers. Rules change, and official agency guidance always controls.