Life Insurance Calculator
Most financial advisors recommend 10-12 times your annual income in life insurance. This free life insurance calculator refines that number using your debts, dependents, education goals and existing coverage.
- Secure: runs in your browser
- Free
- No signup
Your details
Your estimate
Enter your income and press Calculate Estimate. Results also update as you type.
Estimated 20-year term premium: $0/month (illustrative, not a quote).
Next steps
- Check what your employer already provides.
- Compare term policy lengths that match your years of need.
- Speak with a licensed agent for real pricing.
How the life insurance calculator works
This tool estimates the lump sum your family would need if your income stopped. Enter your income, debts and dependents. The result appears instantly and nothing is stored or sent anywhere; all math runs in your browser. It takes about two minutes.
The formula
Coverage needed = (Income gap × Years) + Debts + Final expenses + (Dependents × Education fund) − Existing coverage. Income gap is your income minus 50% of your spouse’s income, never below zero. This is the income-replacement plus needs-analysis method used by most insurers and advisors.
Example: $75,000 income, 15 years, $250,000 debts, $15,000 final expenses, 2 children with $50,000 each, $100,000 existing. Coverage = $1,125,000 + $250,000 + $15,000 + $100,000 − $100,000 = $1,390,000.
Understanding each input
Years of income replacement
Match this to the years until your youngest child is independent or your spouse can retire.
Debts
Include mortgage, auto, student and credit card balances. Leave out debts that would be discharged at death.
Special cases
Stay-at-home parents: enter the annual cost of childcare and household work as income. Self-employed owners: use net profit and consider separate business coverage.
Sample term-life monthly cost (healthy non-smoker, $500,000, 20-year term)
| Age | Estimated monthly cost |
|---|---|
| 30 | $25-$30 |
| 40 | $40-$55 |
| 50 | $100-$130 |
Frequently asked questions
How much life insurance do I need?
Most advisors suggest 10-12 times annual income, then adjust for debts, dependents and existing coverage.
Is 10x income enough?
It is a starting point. Single-income families, young children and large mortgages usually push the number higher.
Should I include my spouse’s income?
Yes. A second income shrinks the gap, so the calculator credits 50% of it.
What if I have no dependents?
You may only need enough for debts and final expenses, particularly if someone co-signed your loans.
How often should I recalculate?
After marriage, a new child, a home purchase, a job change, or every three to five years.
Is this calculator free?
Yes. It is free, requires no signup and stores no data.
Sources and editorial standards
Guidance draws on NAIC consumer resources and U.S. Census Bureau data. Reviewed by the Toolezia editorial team. Contact: info@nsmgraphic.com. Last updated: September 29, 2026.