How Much Life Insurance Do I Need? — Rex's Toolbox

Rex says

Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.

Try a scenario

Click to load — tweak from there.

Inputs

Non-mortgage debts($)

Annual income to replace($)

Years of income to replace

Remaining mortgage balance($)

Future education costs($)

Existing savings/investments($)

Current life insurance coverage($)

Result

Additional coverage needed

$865,000

Total gross need (DIME)

$945,000

Existing savings + coverage offset

$80,000

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How to use this

1Enter non-mortgage debts ($).
2Enter annual income to replace ($).
3Enter years of income to replace.
4Enter remaining mortgage balance ($).
5Enter future education costs ($).
6Enter existing savings/investments ($).
7Enter current life insurance coverage ($).
8Read your additional coverage needed on the right — it updates as you type.
9Hit Share to keep the scenario or send it to someone.

About this calculator

The DIME method (Debt, Income, Mortgage, Education) estimates life insurance need by adding up what your family would need to pay off debts, replace your income for a set number of years, cover the remaining mortgage, and fund children's education, then subtracting existing savings and coverage you already have.

FormulaCoverage Needed = Debts + (Annual Income × Replacement Years) + Remaining Mortgage + Education Costs − Existing Savings − Current Coverage.

Worked example

Using the values the calculator loads with:

Inputs

Non-mortgage debts: 25000 $
Annual income to replace: 60000 $
Years of income to replace: 10
Remaining mortgage balance: 220000 $
Future education costs: 100000 $
Existing savings/investments: 30000 $
Current life insurance coverage: 50000 $

Results

Additional coverage needed: $865,000
Total gross need (DIME): $945,000
Existing savings + coverage offset: $80,000

What each field means

Inputs

Non-mortgage debts ($): The non-mortgage debts used in the calculation, measured in $. Starts at 25000 $ so you have a working example on load.
Annual income to replace ($): The annual income to replace used in the calculation, measured in $. Starts at 60000 $ so you have a working example on load.
Years of income to replace: The years of income to replace used in the calculation. Starts at 10 so you have a working example on load. Accepted range: 1–30.
Remaining mortgage balance ($): The remaining mortgage balance used in the calculation, measured in $. Starts at 220000 $ so you have a working example on load.
Future education costs ($): The future education costs used in the calculation, measured in $. Starts at 100000 $ so you have a working example on load.
Existing savings/investments ($): The existing savings/investments used in the calculation, measured in $. Starts at 30000 $ so you have a working example on load.
Current life insurance coverage ($): The current life insurance coverage used in the calculation, measured in $. Starts at 50000 $ so you have a working example on load.

Results

Additional coverage needed: Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Total gross need (DIME): Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Existing savings + coverage offset: Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.

FAQ

How much life insurance do I need?

Using DIME with $25,000 in debt, $60,000 income replaced over 10 years, a $220,000 mortgage, and $100,000 in future education costs, gross need is $945,000; subtracting $30,000 in savings and $50,000 existing coverage leaves about $865,000 in additional coverage needed.

What is the DIME method?

Debt + Income replacement + Mortgage + Education — a simple sum-of-needs approach that's more tailored than the generic '10x your salary' rule of thumb.

Is 10x income enough on its own?

It's a rough shortcut that ignores mortgage balance, debt, and number of dependents — DIME usually produces a more accurate, often higher, number for families with a mortgage and young kids.

Should I buy term or whole life for this need?

Term life matched to your mortgage or working years is the lowest-cost way to cover a DIME-calculated need, since the need itself typically shrinks over time as debt is paid down and kids finish school.

Accuracy and limitations

Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.

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At $3,800 in essential monthly expenses, a 6-month emergency fund target is $22,800.

How Much Will College Cost in 18 Years?

Today's $25,000/year public college cost grows to about $56,700/year in 18 years at a 5% college inflation rate.

Cite this calculator

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APA

RevenueLab. (2026). How Much Life Insurance Do I Need?. Retrieved from https://www.revenuelab.fyi/toolbox/how-much-life-insurance-do-i-need

HTML

<p>Source: <a href="https://www.revenuelab.fyi/toolbox/how-much-life-insurance-do-i-need" target="_blank" rel="noopener">How Much Life Insurance Do I Need? — RevenueLab</a> (2026).</p>

Markdown

Source: [How Much Life Insurance Do I Need? — RevenueLab](https://www.revenuelab.fyi/toolbox/how-much-life-insurance-do-i-need) (2026).