Disability Insurance Calculator

Estimate the monthly benefit and total coverage you need to protect your income if you cannot work. Enter your numbers and press Calculate.

Written by TopicDrill Editorial Team·Updated June 2026

Share this calculator

Target monthly benefit, covered vs gap

Existing benefit$1,200

Coverage gap$1,800

How the disability coverage estimate works

Your ability to earn is one of your largest financial assets, and disability insurance protects it. This tool starts from a target benefit, usually about 60% of your gross monthly income, which often lands near your normal take-home pay once you account for taxes.

It then subtracts any coverage you already have, such as a group policy through work or a government benefit, to reveal the monthly gap you still need to fill. The larger of that income gap and your essential expenses becomes the recommended benefit, so your core bills stay covered even if your target is conservative.

A quick example

Suppose you earn $5,000 a month and want to replace 60%, a $3,000 target. If you already have $1,200 of coverage, the gap is $1,800 a month. Over a 5 year benefit period that is $1,800 × 60 months, or $108,000 of protection to plan for.

Things to keep in mind

Premiums depend on your age, health, occupation and the policy's definition of disability and waiting period, so quotes vary. Treat this as a planning starting point, not a quote. For consumer guidance on protecting your income, the Consumer Financial Protection Bureau is a solid resource. Compare other protection needs with our free calculators.

Frequently asked questions

How much disability insurance do I need?

A common rule is to replace about 60% of your gross income, since disability benefits are often tax free when you pay the premiums yourself. Subtract any coverage you already have, such as an employer or government benefit, to find the gap you still need to fill.

What does long term disability insurance cover?

Long term disability pays a monthly benefit if an illness or injury keeps you from working for an extended period. It replaces part of your income so you can keep paying rent, food, debts and other essentials while you recover or adjust.

Why not just replace 100% of my income?

Insurers usually cap benefits below your full pay to keep an incentive to return to work, and because benefits are often tax free when premiums are paid with after-tax dollars. Replacing 60% of gross income frequently lands close to your normal take-home pay.

How long should the benefit period be?

The benefit period is how long the policy keeps paying. Many people choose a period that runs to retirement age for full protection, while others pick a shorter term to lower the premium. This tool multiplies your monthly gap by the period you choose to show total coverage.

Related guides

View all →

Money Management ETF vs Mutual Fund: Which Is Better for Beginners?

ETF vs Mutual Fund: Which Is Better for Beginners? Explore costs, tax implications, and trading flexibility for informed investment decisions.

MAJun 11, 2026Read More →

Business Finance How Much Will $1,000 Invested Today Be Worth in 10 Years?

Invest $1,000 today and the answer to "what's it worth in 10 years?" ranges from about $1,040 in a basic savings account to roughly $2,594 at the stock market's long-run average. Here's the math behind every scenario — plus how inflation, fees and taxes change the real number.

MAJun 9, 2026Read More →

Business Finance How Much Do You Need to Retire Comfortably? (2026 Guide)

There's no single magic number for retirement — but there are proven formulas that get you close. Using the 4% rule, most people need roughly 25 times their annual spending invested. Here's how to find your personal target, factoring in Social Security, healthcare, inflation and lifestyle.