Disability Insurance
Use this calculator to determine how much disability insurance you may need to cover expenses if you are unable to work due to illness or injury.
How the disability insurance calculator works
It calculates the monthly benefit you would need — a chosen percentage of your income — then subtracts any coverage your employer already provides to reveal the gap a private policy should fill.
Worked example: with monthly gross income of $6,500, income to replace of 65.00% and existing employer coverage (monthly) of $1,500, the disability insurance calculator shows additional coverage you need of $2,725.00.
- Target benefit
- $4,225.00
- Employer coverage
- $1,500.00
- Coverage gap
- $2,725.00
- Covers essentials?
- No
The formula
Target benefit = monthly income × replacement %. Coverage gap = target benefit − existing employer coverage.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the disability insurance
How much disability coverage do I need?
Enough to cover your essential expenses, typically 60–70% of gross income. Because privately-paid benefits are usually tax-free, that range often preserves your take-home pay.
Isn’t my employer coverage enough?
Often not. Group coverage commonly replaces only 40–60% of income, is capped, and is taxable if the employer pays the premium — leaving a gap this calculator highlights.
Why is disability insurance important?
Your ability to earn is your largest asset. A disability is far more likely than death during working years, yet far fewer people insure against it.
Is the Disability Insurance free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.