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
Result
Additional coverage needed
$1,575,000
Policy size to shop for
$1,600,000
Total DIME need
$1,715,000
Income replacement portion
$1,275,000
Equivalent multiple of income
20.2
x
Psst — share this and help Rex grow
One click, a permanent link with your numbers baked in.
How to use this
- 1Enter annual income to replace ($).
- 2Enter years of income replacement (years).
- 3Enter mortgage balance ($).
- 4Enter other debts (cards, auto, student) ($).
- 5Enter future education costs ($).
- 6Enter final expenses ($).
- 7Enter existing life coverage ($).
- 8Enter liquid savings and investments ($).
- 9Read your additional coverage needed on the right — it updates as you type.
- 10Hit Share to keep the scenario or send it to someone.
About this calculator
Most coverage guidance stops at '10 times your income', which either overshoots for a debt-free household with grown kids or badly undershoots for a young family with a mortgage and college ahead. This calculator uses the DIME method instead — Debt, Income replacement, Mortgage, Education — and subtracts existing coverage and liquid savings to produce the gap you actually need to buy. Income replacement is modeled over the years your dependents rely on it, discounted lightly for the fact that a lump sum can be invested. Final expenses are included as a separate line because funeral and estate settlement costs routinely reach $10,000-$20,000. Once you have the gap number, remember term insurance prices roughly linearly with coverage: doubling the face amount roughly doubles the premium, so buying the correct number rather than a round one is worth real money over a 20- or 30-year term.
Worked example
Using the values the calculator loads with:
Inputs
- Annual income to replace: 85000 $
- Years of income replacement: 15 years
- Mortgage balance: 280000 $
- Other debts (cards, auto, student): 25000 $
- Future education costs: 120000 $
- Final expenses: 15000 $
- Existing life coverage: 100000 $
- Liquid savings and investments: 40000 $
Results
- Additional coverage needed: $1,575,000
- Policy size to shop for: $1,600,000
- Total DIME need: $1,715,000
- Income replacement portion: $1,275,000
- Equivalent multiple of income: 20.2
What each field means
Inputs
- Annual income to replace ($)
- The annual income to replace used in the calculation, measured in $. Starts at 85000 $ so you have a working example on load. Accepted range: 0–2000000 $.
- Years of income replacement (years)
- The years of income replacement used in the calculation, measured in years. Starts at 15 years so you have a working example on load. Accepted range: 0–40 years.
- Mortgage balance ($)
- The mortgage balance used in the calculation, measured in $. Starts at 280000 $ so you have a working example on load. Accepted range: 0–3000000 $.
- Other debts (cards, auto, student) ($)
- The other debts (cards, auto, student) used in the calculation, measured in $. Starts at 25000 $ so you have a working example on load. Accepted range: 0–1000000 $.
- Future education costs ($)
- The future education costs used in the calculation, measured in $. Starts at 120000 $ so you have a working example on load. Accepted range: 0–1000000 $.
- Final expenses ($)
- The final expenses used in the calculation, measured in $. Starts at 15000 $ so you have a working example on load. Accepted range: 0–100000 $.
- Existing life coverage ($)
- The existing life coverage used in the calculation, measured in $. Starts at 100000 $ so you have a working example on load. Accepted range: 0–5000000 $.
- Liquid savings and investments ($)
- The liquid savings and investments used in the calculation, measured in $. Starts at 40000 $ so you have a working example on load. Accepted range: 0–5000000 $.
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.
- Policy size to shop for
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total DIME need
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Income replacement portion
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Equivalent multiple of income
- x
FAQ
How many years of income should I replace?
Until your youngest dependent is financially independent, or until a surviving spouse reaches retirement assets — commonly 10-20 years. Longer replacement periods raise the number quickly, so pick the year your household stops needing the income.
Should I count retirement accounts as savings?
Only partly. Early withdrawal rules and the fact that the surviving spouse still needs to retire mean most planners count taxable savings fully and retirement balances lightly or not at all.
Term or whole life?
For pure gap coverage, level term matching your replacement period is dramatically cheaper per dollar of death benefit. Permanent policies serve estate and business-continuity goals, not the basic income-replacement need this tool sizes.
Does group coverage at work count?
Include it as existing coverage, but remember most group policies end when the job does and are often capped at one or two times salary.
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.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Life Insurance Coverage Need Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/life-insurance-coverage-need-calculator
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/life-insurance-coverage-need-calculator" target="_blank" rel="noopener">Life Insurance Coverage Need Calculator — RevenueLab</a> (2026).</p>
Source: [Life Insurance Coverage Need Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/life-insurance-coverage-need-calculator) (2026).