Disability Insurance Calculator

The tool implements three common methods: (1) income-replacement: target replacement ratio of pre-disability earnings less employer/state offsets; (2) expense-based: shortfall between monthly expenses and predictable income sources multiplied by the benefit period; (3) human-capital: present value of projected pre-disability earnings until a chosen retirement age using an annuity present-value factor.

To support trustworthy handling of user inputs and privacy this tool follows general guidance from NIST on data minimization and security controls. Model outputs are numeric estimates derived from algebraic formulas and do not use or infer protected medical information. For professional liability and compliance guidance consult applicable ISO, IEEE, and local regulatory standards.

This advanced estimator supports three complementary approaches to disability insurance need. Enter accurate income, expense, and benefit details for meaningful results.

Always validate outputs with policy documents and a licensed insurance or tax professional. The calculator is an estimator and not an insurance policy or contractual quote.

Example 1 (income-replacement): $80,000 annual income, 60% replacement, no employer benefits → target monthly benefit = $4,000; estimated monthly need ≈ $4,000.

Example 2 (expense-based): $3,000 monthly expenses, employer long-term benefit of 40% salary converted to monthly amount reduces the monthly shortfall; total coverage is monthly shortfall × chosen benefit months.

Example 3 (human-capital): A 35-year-old with $80,000 annual income and retirement at 67 will see present-value lost earnings estimated by applying the discount-rate annuity factor across years to retirement.