How much life insurance do I need?

How to use it

Every box starts with a sample value. Replace each one with your own figure; the result updates as you type.

1. Enter your annual pre-tax income, the number of years your family would need it replaced, and the share of that income they would need.
2. Enter your mortgage balance and other debts, then the number of children you plan to put through college and a cost per child in today's dollars.
3. Add final expenses and any other goal, such as an emergency fund.
4. Enter the life insurance you already own and the savings your family could use.

The large number at the top is the coverage left to buy. The table under it shows each line that went into the total.

How the math works

This is a line-by-line needs analysis:

• Income replacement = income × share needed × years.
• Total need = income replacement + mortgage + other debts + (children × college cost per child) + final expenses + other goals.
• Coverage gap = total need − existing coverage − savings, never below zero.

The suggested amount is the gap rounded up to the next $50,000, because policies are sold in round face amount sizes. The tool also prints the "10 times income" shortcut so you can compare it with the detailed total.

Hypothetical example, using the tool's starting values: $75,000 × 80% × 10 years is $600,000. Add a $250,000 mortgage, $15,000 of other debts, two children at $100,000 each and $15,000 of final expenses, and the total need is $1,080,000. Subtract $20,000 of savings and no existing coverage, and the gap is $1,060,000, so the tool shows $1,100,000. These are sample inputs, not a recommendation.

What it assumes

• Income is replaced as a flat amount for a flat number of years. There are no raises, no inflation and no investment return on the payout.
• The starting values (80% of income, 10 years, $15,000 of final expenses, $20,000 of savings) are placeholders in the tool, not statistics. The only outside figure quoted is the National Funeral Directors Association 2023 median of $8,300 for a funeral with viewing and burial, which leaves out cemetery costs (NFDA statistics).
• Existing coverage and savings count in full, including coverage through work that usually ends with the job.
• Social Security survivor benefits are not calculated. If you have an estimate, you can enter part of it as savings.

Where it stops being right

• A payout invested over time can earn a return, while prices rise. Ignoring both keeps the arithmetic simple but moves the answer in each direction.
• The tool does not model a spouse's income, a spouse who works part-time, or a spouse who stays home, any of which changes the need.
• It does not check whether an insurer will issue the amount. Insurers set their own limits relative to income and health.
• Rounding up to $50,000 can overshoot the gap by up to $49,999.

Treat the result as a starting point. The The DIME method for sizing life insurance and human life value calculator approach the same question differently, and How long a term do I need? helps you decide how long the coverage should last.