Human Life Value
One of your most important assets is your ability to earn a paycheck. This calculator is designed to help you understand today's value of your future earning.
How the human life value calculator works
It replaces the share of your income your family depends on, growing it by your expected raises, and discounts that stream of future earnings back to today's dollars. The result is the economic value of your working life — a benchmark for life insurance.
Worked example: with annual income of $75,000, years until retirement of 25 and annual income growth of 3.00%, the human life value calculator shows your human life value of $1,073,536.
- Income replaced
- $56,250.00
- Human life value
- $1,073,536
- Total future earnings
- $1,406,250
- Discounting effect
- $332,714
The formula
Value = replaceable income × (1 − ((1 + growth) ÷ (1 + discount))ⁿ) ÷ (discount − growth), the present value of a growing income stream over n years.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the human life value
What is human life value?
The present value of your future earnings that your family relies on — an economic estimate of what it would cost to replace your income if you were gone.
How does it differ from a needs-based estimate?
Human life value is based on your income; the needs-based (DIME) method totals specific obligations like debts and education. Many advisors look at both.
Why exclude the income I spend on myself?
Because that portion would not need replacing — your family needs the income that supports them, not the part you consume personally.
Is the Human Life Value 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.