What's inside
- Needs: your take-home pay, the share your family would need, their other income, the years, inflation and what the payout would earn; your mortgage, debts, children's education, final expenses and emergency fund; savings and existing cover
- Results: the yearly shortfall, the lump sum that covers it, total need and the gap to buy, next to the 10x income and DIME rules of thumb
- Year by year: the lump sum drawn down each year, to show it lasts exactly as long as your family needs it
- Sample file: $70,000 take-home, 2 children, a $280,000 mortgage and $140,000 of cover through work: buy about $890,149 more
Checked, not just designed: all 172 formulas recalculate with zero errors, and the lump sum and every year's balance were checked against an independent year-by-year search in 8 scenarios.
Works in Excel and Google Sheets. Not financial or insurance advice.
Try the free version first
The free online calculator uses the same model for a quick answer. The spreadsheet adds tracking, history and the full views.