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Income Protection Calculator
Find the monthly benefit that would keep your bills paid if you could not work. Enter your income, costs and any existing cover, then press Calculate to size the gap.
Written by TopicDrill Editorial Team·Updated June 2026
Cumulative benefit if claimed to retirement
Total paid
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How the income protection calculator works
The tool starts from the share of your salary you want to replace and converts it to a monthly benefit. It then applies the cap most insurers use, around 65% of gross income, so the suggested figure is one you could realistically buy. Finally it compares that benefit with your essential monthly costs to show whether it would actually keep you afloat.
The chart adds up the benefit you could receive year by year if a claim ran all the way to retirement. It is a reminder that income protection is about replacing many years of earnings, not just covering a short gap.
A quick example
Imagine you earn $75,000, want to replace 60% of it, and have $3,200 of essential costs each month. Sixty percent of your salary is $3,750 a month, which sits under the insurer cap, so the suggested benefit is $3,750 and comfortably covers your bills. If you held no existing cover, that is the full amount you would need to arrange.
Things to keep in mind
Premiums depend on your age, job, health and the waiting period you choose, so a lower benefit or a longer wait can make cover far cheaper. Check whether your employer already provides any sick pay or group cover before buying more. For an overview of how disability and income cover fit into a wider plan, see Investor.gov. To weigh up the lump-sum protection your family might need too, try our human life value calculator.
Frequently asked questions
What is income protection insurance?
Income protection insurance pays you a regular monthly benefit if illness or injury stops you from working. Unlike a one-off lump sum, it replaces part of your salary on an ongoing basis, usually until you recover, return to work, or reach the end of the policy term, helping you keep up with everyday bills while you cannot earn.
How much income protection do I need?
A common approach is to insure enough to cover your essential monthly costs, while staying within the limit insurers allow. Most providers cap cover at around 65% of your gross income, because paying close to your full salary would remove the incentive to return to work. This calculator targets your chosen replacement percentage and trims it to that cap.
What is a waiting period?
The waiting period, also called the deferred period, is the time you must be unable to work before the benefit starts paying. Common choices range from a few weeks to several months. A longer waiting period lowers the premium because the insurer pays out less often, so it suits people with savings or sick pay that can bridge the early weeks.
Does the benefit get taxed?
It depends on who paid the premiums and the rules where you live. Personal policies paid from after-tax income often pay a tax-free benefit, while employer-paid or salary-deducted cover may be taxable. Because the treatment varies, confirm the position for your own situation with a qualified adviser before relying on the headline figure.
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