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Life Insurance Calculator

Estimate how much life insurance coverage your family needs using the DIME method. Enter your income, debts and savings, then press Calculate.

Written by TopicDrill Editorial Team·Updated June 2026

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Your situation

Fill in the details, then press Calculate.

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What you already have (optional)Show
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Coverage you need

$955,000

Total needs$1,055,000
Savings & coverage$100,000

Based on the DIME method: debt, income, mortgage and education, less what you already have.

What makes up your coverage need

Income replacement$700,000Mortgage$220,000Other debts$20,000Education$100,000Final expenses$15,000Savings & coverage-$100,000

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How the life insurance calculator works

Life insurance exists to replace the financial support you provide. This calculator uses the DIME method, a widely taught framework that totals four needs: Debt, Income replacement, Mortgage and Education. From that sum it subtracts the savings and coverage you already hold, leaving the gap a new policy would fill.

Income replacement is usually the largest piece. It is your annual income multiplied by the number of years you want to support your family. The chart breaks each component apart so you can see what is driving the recommended coverage.

A quick example

A parent earning $70,000 who wants 10 years of income replacement has a $700,000 income need. Add a $220,000 mortgage, $20,000 of other debt, $100,000 for education and $15,000 of final expenses for a total of $1.055 million. Subtract $100,000 of savings and existing coverage and the target is about $955,000.

Things to keep in mind

This is a planning estimate, not advice tailored to your situation. Your real number depends on health, family structure and goals. For consumer basics on choosing a policy, the Consumer Financial Protection Bureau is a reliable source. Explore more with our free calculators.

Frequently asked questions

How much life insurance do I need?

A common starting point is the DIME method, which adds your Debts, an Income replacement amount, your Mortgage and future Education costs, then subtracts savings and any coverage you already have. The remaining figure is a reasonable coverage target.

How many years of income should I replace?

Many families choose enough to support dependents until children are grown or a spouse can rely on their own income, often 10 to 20 years. Replace fewer years if your partner earns well, more if your household depends heavily on one income.

Should I subtract my savings?

Yes. Liquid savings, investments and existing policies all reduce the gap insurance needs to fill. Subtracting them avoids over-insuring and keeps your premiums lower while still protecting your family.

Is term or whole life better?

Term life covers a set period at a low cost and suits most families covering income and a mortgage. Whole life lasts for life and builds cash value but costs much more. This calculator estimates the coverage amount, not the policy type.

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