CalcMyFin

Safety Net

Life Insurance Calculator

Estimate how much life insurance would protect the people who depend on you. We combine income replacement, debts and future costs, then subtract the savings and coverage you already have.

  • Free, no sign-up
  • Private: runs in your browser
  • Updated September 2026

Inputs

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Use a representative annual income if earnings vary.
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Ten is an editable rule of thumb, not a universal recommendation. Try several values.
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Mortgage, loans, cards, and other balances.
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Education or other major future family costs.
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Resources that could reduce the additional coverage estimate.

How to use the life insurance calculator

  1. Enter your annual income and how many years of income you'd want to replace.
  2. Add debts you'd want paid off, such as your mortgage and loans.
  3. Include future costs like college or final expenses.
  4. Subtract savings and existing life insurance.

How it's calculated

Coverage = Income × Years + Debts + Future costs − Existing assets

This income-replacement approach is similar to the popular DIME method (Debt, Income, Mortgage, Education). Many advisers suggest roughly 10–15 times income as a quick starting point.

Example

Replacing a $80,000 income for 10 years ($800,000), plus a $250,000 mortgage and $100,000 for college, minus $75,000 in savings and existing coverage, suggests about $1,075,000 of life insurance.

Tips

  • Term life insurance is usually the most affordable way to get a large amount of coverage.
  • Match the term length to your longest obligation, such as your mortgage or kids reaching adulthood.
  • Workplace coverage is often limited and may not follow you if you change jobs.
  • Review your coverage after major life events: marriage, a new child, a new home.

Frequently asked questions

How much life insurance do I need?
Enough to replace your income for the years your family would need it, pay off major debts, and cover future goals like college, minus what your savings and existing policies already cover. The calculator above adds this up for you.
Term or whole life insurance?
Term life covers a set period (such as 20 or 30 years) and is much cheaper per dollar of coverage. Whole life lasts your entire life and builds cash value, but costs significantly more. Most families' needs are met with term coverage.
Do I need life insurance if I'm single?
Often not, unless someone depends on your income, you co-signed debts, or you want to cover final expenses. Needs grow with a partner, children or a mortgage.
Is workplace life insurance enough?
Employer coverage is usually one or two times salary, which is typically far less than a family needs, and it may end when you leave the job.
Emergency Fund calculatorYour cash-cushion target and progress.Net Worth calculatorAdd up what you own and owe for a snapshot.Retirement calculatorProject your nest egg and retirement income.

Sources

This calculator provides educational estimates only and is not financial, tax, legal or investment advice. Results depend on the assumptions you enter; actual terms from lenders, insurers and tax authorities may differ.