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
Coverage you still need
$1,707,000
Rounded policy size to quote
$1,750,000
Total need before offsets
$1,867,000
Assets and coverage you already have
$160,000
Income replacement portion
$1,425,000
Multiple of your income
18.0
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How to use this
- 1Enter annual income to replace ($).
- 2Enter years of income replacement.
- 3Enter mortgage balance ($).
- 4Enter other debts ($).
- 5Enter future education costs ($).
- 6Enter final expenses ($).
- 7Enter savings and investments ($).
- 8Enter existing coverage ($).
- 9Read your coverage you still need on the right — it updates as you type.
- 10Hit Share to keep the scenario or send it to someone.
About this calculator
The DIME method adds debt, income replacement, mortgage, and education, then subtracts existing assets and coverage. It beats the lazy '10x income' rule because it accounts for what you already have.
Worked example
Using the values the calculator loads with:
Inputs
- Annual income to replace: 95000 $
- Years of income replacement: 15
- Mortgage balance: 285000 $
- Other debts: 22000 $
- Future education costs: 120000 $
- Final expenses: 15000 $
- Savings and investments: 60000 $
- Existing coverage: 100000 $
Results
- Coverage you still need: $1,707,000.00
- Rounded policy size to quote: $1,750,000.00
- Total need before offsets: $1,867,000.00
- Assets and coverage you already have: $160,000.00
- Income replacement portion: $1,425,000.00
- Multiple of your income: 18
What each field means
Inputs
- Annual income to replace ($)
- The annual income to replace used in the calculation, measured in $. Starts at 95000 $ so you have a working example on load.
- Years of income replacement
- The years of income replacement used in the calculation. Starts at 15 so you have a working example on load. Accepted range: 1–40.
- Mortgage balance ($)
- The mortgage balance used in the calculation, measured in $. Starts at 285000 $ so you have a working example on load.
- Other debts ($)
- The other debts used in the calculation, measured in $. Starts at 22000 $ so you have a working example on load.
- Future education costs ($)
- The future education costs used in the calculation, measured in $. Starts at 120000 $ so you have a working example on load.
- Final expenses ($)
- The final expenses used in the calculation, measured in $. Starts at 15000 $ so you have a working example on load.
- Savings and investments ($)
- The savings and investments used in the calculation, measured in $. Starts at 60000 $ so you have a working example on load.
- Existing coverage ($)
- The existing coverage used in the calculation, measured in $. Starts at 100000 $ so you have a working example on load.
Results
- Coverage you still need
- 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.
- Rounded policy size to quote
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Total need before offsets
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Assets and coverage you already have
- 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.
- Multiple of your income
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How does the life insurance coverage calculator work?
The DIME method adds debt, income replacement, mortgage, and education, then subtracts existing assets and coverage. It beats the lazy '10x income' rule because it accounts for what you already have. The underlying maths is: Coverage = Debt + income × years + mortgage + education − savings − existing policies.
What do I need to enter?
8 values: annual income to replace, years of income replacement, mortgage balance, other debts, future education costs, final expenses, savings and investments, and existing coverage. Each field starts with a sensible default, so you can change one number at a time and watch the result move.
What does the coverage you still need result mean?
It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds.
Is this calculator free, and do I need an account?
Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser.
How accurate is the result?
It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
Who is this tool for?
It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs.
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 Needs Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/life-insurance-needs
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/life-insurance-needs" target="_blank" rel="noopener">Life Insurance Needs Calculator — RevenueLab</a> (2026).</p>
Source: [Life Insurance Needs Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/life-insurance-needs) (2026).