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
Net monthly benefit
$3,120
Gross benefit after offsets
$4,000
Real replacement of take-home
43.6%
Monthly income gap
$4,030
Savings needed for elimination period
$21,450
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How to use this
- 1Enter annual salary ($).
- 2Enter plan replacement rate (%).
- 3Enter monthly benefit cap ($).
- 4Enter monthly offsets (ssdi, workers' comp) ($).
- 5Enter who paid the premium?.
- 6Enter effective tax rate (%).
- 7Enter elimination period (days).
- 8Read your net monthly benefit on the right — it updates as you type.
- 9Hit Share to keep the scenario or send it to someone.
About this calculator
A group long-term disability plan advertised as replacing 60% of income rarely pays 60% of your paycheck. Three things shrink it: a monthly dollar cap that binds at higher salaries, offsets that subtract Social Security disability, workers' compensation, and other benefits from the plan's payment, and tax treatment — if your employer paid the premium, the benefit is taxable income, while premiums you paid with after-tax dollars produce a tax-free benefit. This calculator applies the replacement percentage, enforces the monthly maximum, subtracts offsets, and then applies tax to produce a realistic monthly and annual net. It also shows the gap against your current take-home so you can size an individual supplemental policy or an emergency fund. Check your certificate of coverage for the exact definition of disability, the elimination period, and whether benefits run to age 65 or for a fixed number of years.
Worked example
Using the values the calculator loads with:
Inputs
- Annual salary: 110000 $
- Plan replacement rate: 60 %
- Monthly benefit cap: 8000 $
- Monthly offsets (SSDI, workers' comp): 1500 $
- Who paid the premium?: Employer — benefit is taxable
- Effective tax rate: 22 %
- Elimination period: 90 days
Results
- Net monthly benefit: $3,120
- Gross benefit after offsets: $4,000
- Real replacement of take-home: 43.6%
- Monthly income gap: $4,030
- Savings needed for elimination period: $21,450
What each field means
Inputs
- Annual salary ($)
- The annual salary used in the calculation, measured in $. Starts at 110000 $ so you have a working example on load. Accepted range: 15000–1000000 $.
- Plan replacement rate (%)
- The plan replacement rate used in the calculation, measured in %. Starts at 60 % so you have a working example on load. Accepted range: 30–80 %.
- Monthly benefit cap ($)
- The monthly benefit cap used in the calculation, measured in $. Starts at 8000 $ so you have a working example on load. Accepted range: 500–30000 $.
- Monthly offsets (SSDI, workers' comp) ($)
- The monthly offsets (ssdi, workers' comp) used in the calculation, measured in $. Starts at 1500 $ so you have a working example on load. Accepted range: 0–10000 $.
- Who paid the premium?
- Pick the option that matches your situation — the maths changes per option. Choices: Employer — benefit is taxable, I paid after-tax — benefit is tax-free.
- Effective tax rate (%)
- The effective tax rate used in the calculation, measured in %. Starts at 22 % so you have a working example on load. Accepted range: 0–50 %.
- Elimination period (days)
- The elimination period used in the calculation, measured in days. Starts at 90 days so you have a working example on load. Accepted range: 0–365 days.
Results
- Net monthly benefit
- 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.
- Gross benefit after offsets
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Real replacement of take-home
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Monthly income gap
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Savings needed for elimination period
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
What is an elimination period?
The waiting time between the disability starting and the first LTD payment, commonly 90 or 180 days. Short-term disability or savings has to cover that gap, which is what the bridge figure estimates.
Why are offsets subtracted?
Group LTD contracts are usually written to top you up to the replacement percentage from all sources combined, so approved Social Security disability generally reduces the insurer's payment dollar for dollar rather than adding to it.
Should I pay the premium myself?
If your employer offers the choice, paying with after-tax dollars typically costs a little now and makes the entire benefit tax-free later, which is usually the better trade at higher incomes.
Does 'own occupation' matter?
Substantially. Own-occupation definitions pay if you cannot perform your specific job; any-occupation definitions stop paying once you could do any reasonable work. Many plans switch definition after 24 months.
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). Long-Term Disability Benefit Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/long-term-disability-benefit-calculator
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/long-term-disability-benefit-calculator" target="_blank" rel="noopener">Long-Term Disability Benefit Calculator — RevenueLab</a> (2026).</p>
Source: [Long-Term Disability Benefit Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/long-term-disability-benefit-calculator) (2026).