Disability Insurance Calculator
This calculator offers multiple established approaches to estimate how much disability income protection you may need: income-replacement, expense-based, and a human-capital present-value approach. Results are high-level estimates to help you plan and compare scenarios.
Use the inputs to reflect your pre-disability earnings, employer benefits, other income sources, and your intended benefit period. The tool does not sell policies or guarantee pricing; it provides calibrated estimates to support conversations with licensed advisors.
Estimates monthly and annual policy need based on a target replacement ratio of pre-disability earnings, subtracting employer and state benefits and other income.
Inputs
Results
Estimated monthly benefit you may need
$4,000.00
Estimated annual benefit you may need
$48,000.00
| Output | Value | Unit |
|---|---|---|
| Estimated monthly benefit you may need | $4,000.00 | USD |
| Estimated annual benefit you may need | $48,000.00 | USD |
Visualization
Methodology
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.
Worked examples
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.
Key takeaways
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.
Further resources
External guidance
Expert Q&A
How accurate are the results?
Results are approximate and depend on correct inputs and assumptions. They do not replace policy wording or a licensed advisor's needs analysis. Use results as planning guidance only.
Does this calculator account for taxes?
The tool allows you to set expected tax treatment of benefits (pre-tax or after-tax). It does not compute detailed tax liabilities. Consult a tax professional for personalized tax treatment of benefits.
Are employer benefits and state benefits included?
Yes. Enter employer long-term/short-term benefit percentages and estimated state benefit percentage. Those reduce the estimated additional policy need.
Should I buy a policy equal to the calculator's recommendation?
Not automatically. Use the estimate to inform conversations with a licensed insurance professional who can review occupation-specific definitions, policy wording (own-occupation vs any-occupation), elimination periods, and indexing features.
What standards and safeguards were considered?
The tool follows data-handling guidance informed by NIST, cites ISO and IEEE best practices for method transparency, and recommends workplace safety considerations aligned with OSHA. These references are for governance and transparency and do not imply regulatory approval of estimates.
Sources & citations
- Social Security Administration — Disability benefits and calculators — https://www.ssa.gov/benefits/disability/
- National Institute of Standards and Technology (NIST) — https://www.nist.gov
- International Organization for Standardization (ISO) — https://www.iso.org
- IEEE Standards Association — https://standards.ieee.org
- Occupational Safety and Health Administration (OSHA) — https://www.osha.gov