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How much life insurance do I need?

Enter your income, how many years your family would need it, your debts, education costs and what you already have. The calculator adds up the needs, subtracts your resources and shows the recommended coverage.

Educational simulation. Not investment advice. Results are estimates based on the data you enter and do not replace advice from a qualified professional.

Reviewed on Nov 1, 2026

Example: $6,000 monthly take-home pay, two children, a mortgage and $60,000 saved.

Income your family would lose
Expenses to cover
What your family would already have

Some mortgages and loans carry credit life insurance that pays the balance if you die; if yours does, leave that debt out.

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—Recommended coverage
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From needs to coverage

Each need adds up; existing savings and coverage subtract. The last bar is the insurance to buy.

Tap the chart to see the values.

Coverage by years of income

Insurance needed if your family needs the income for more or fewer years, everything else equal.

Tap the chart to see the values.

Needs calculation

Values in today’s money.

Next step

Take this page’s results to another calculator with the fields already filled in.

Also build an emergency fund →Work out your household net worth →

The summary lists your inputs, results, formulas, assumptions and sources. The full report also includes the charts and interpretations, in color. In the print dialog, choose Save as PDF.

Method, assumptions and sources

Formulas

Monthly income to replace M = income × % − survivor benefits; present value = M × [1 − (1 + i)^−n] ÷ i, i = (1 + real rate)^(1/12) − 1, n = years × 12
Needs = present value of income + debts + education + final expenses + other goals
Coverage = max(0, needs − savings − existing coverage); multiple = coverage ÷ (income × 12)

Assumptions and limits

  • Values in today’s money; the payout is invested at a constant real rate and drawn monthly. Taxes, disability, critical illness and premium cost are not included. Survivor benefits are entered by you.
  • The 10× income rule is shown only as a rule-of-thumb comparison, not a recommendation.

Official sources and references

Frequently asked questions

What is this calculator for?

It estimates how much life insurance to buy with the needs approach: it adds what your family would need if you died (income for some years, debts, education, final expenses) and subtracts what they would already have (savings, existing coverage and survivor benefits).

How do I read the example result?

With $6,000 of take-home pay and $800 of survivor benefits, the family needs another $3,400 a month for 15 years, which takes $529,038 invested at 2% above inflation. With debts, education and final expenses, needs total $884,038; subtracting $160,000 of resources, coverage is $724,038, about 10.1 times annual income.

Why is income not the simple sum of the months?

Because the payout is invested and drawn down over time. $3,400 a month for 15 years adds up to $612,000, but earning 2% a year above inflation, $529,038 is enough. With a zero real return, the two numbers are the same.

Do Social Security survivor benefits count?

Yes, as monthly income that reduces the amount to replace. Your Social Security statement shows estimated survivor benefits for a spouse and children. Benefits for children usually stop at 18 (19 if still in high school), so be conservative.

Should I include the mortgage?

Only if it is not covered by credit life or mortgage protection insurance. Many families want the mortgage paid off so the surviving spouse can stay in the home; if so, include the full balance.

Does the 10× income rule work?

It is a quick starting point, but it ignores your children’s ages, your debts and your savings. In the example, the need is about 10.1 times income; a couple with no children or debt may need much less. The needs approach is more precise.

When should I talk to an agent?

Once you know the coverage amount, a licensed agent can help you choose the type (term or permanent), the beneficiaries and riders. Term life is usually the lowest-cost way to cover a temporary need. This calculator is educational and does not replace a policy review.

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How much life insurance do you need

Life insurance exists so your family can keep going if the income of the person who supports the household disappears. The right question is not "how much does a policy cost" but "how much would my family need".

The needs approach

Add up everything your family would need and subtract what they would already have. Needs: the income that would stop for some years, debts to pay off, children’s education and final expenses. Resources: savings, investments, coverage you already have and survivor benefits.

Income to replace

With one less person, expenses fall a little, so planners usually replace 60% to 80% of take-home pay. Income is valued at present value: the payout is invested and drawn down over time, so it takes less than the simple sum of the months.

The example

With $6,000 of take-home pay and $800 a month of survivor benefits, the family would need another $3,400 a month for 15 years. Invested at 2% a year above inflation, that income takes $529,038. Adding $220,000 of debts, $120,000 for education and $15,000 of final expenses, needs reach $884,038. Subtracting $60,000 of savings and $100,000 of existing coverage, the recommended coverage is $724,038, about 10.1 times annual income.

Term life and credit life

Term life insurance is the usual way to cover this need at a lower cost, lasting until your children are independent. Some mortgages carry credit life insurance that pays the balance; if yours does, leave that debt out.