Life Insurance Calculator
Find out how much life insurance you really need!
How the life insurance calculator works
It applies the DIME method — totaling your Debts, Income to replace, Mortgage and Education costs, plus final expenses — then subtracts the savings and existing coverage your family already has, leaving the gap a new policy should fill.
Worked example: with annual income to replace of $70,000, years to replace income of 15 and mortgage balance of $240,000, the life insurance calculator shows life insurance you need of $1,350,000.
- Income replacement
- $1,050,000
- Debts + mortgage
- $265,000
- Education + final
- $115,000
- Coverage needed
- $1,350,000
The formula
Need = (annual income × years) + mortgage + other debts + final expenses + education − existing savings & 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 life insurance calculator
How much life insurance do I need?
Enough to cover your family's ongoing income, clear debts and the mortgage, fund education and final expenses, minus what they already have. The DIME method here estimates that figure.
What does DIME stand for?
Debt, Income, Mortgage and Education — the four big needs a life insurance payout typically has to cover. It is a simple, thorough way to size coverage.
Should I subtract existing savings?
Yes — any savings, investments or current coverage reduce what a new policy must provide, so they are deducted to avoid over-insuring.
Is the Life Insurance Calculator 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.