How much life insurance do you actually need? The most common answer — "10 times your salary" — is a rule of thumb, not a plan. Your real coverage need depends on what your family would owe, what they'd lose in income, and what you already have saved. That's exactly what this calculator works out for you.
Answer six quick questions and you'll see an estimated coverage recommendation for 2026 built on the DIME method (Debt, Income, Mortgage, Education): income replacement for the years your family needs it, your outstanding debts, an approximate college fund per child — minus the savings and insurance you already have. It takes under a minute.
How we got there
The range spans ±10% around the central estimate. The simple 10×-income rule of thumb is shown for comparison, not as a recommendation.
How we estimate
This calculator uses the DIME method — Debt, Income, Mortgage, Education — the approach most financial planners start with:
- Income replacement: annual income × the years your family needs support. Ten years is the default; younger families often choose 15–20.
- Debts: your total outstanding debts, including the mortgage — the number your family would need to clear or keep paying.
- Education: roughly $125,000 per child needing college support, a rounded approximation of typical four-year US college costs in 2026. It is the roughest part of the estimate — actual costs vary enormously.
- Minus savings: existing savings, investments and any life insurance already in force are subtracted, because coverage should fill the gap, not double-count.
Coverage gap = (income × years) + debts + (children × $125,000) − savings − existing insurance. The result is rounded to the nearest $10,000, since life insurance is sold in round policy sizes anyway. If the math comes out at or below zero, you likely don't need new coverage right now — the tool will say so.
Frequently asked questions
How does this life insurance calculator estimate my coverage need?
It uses the DIME method — Debt, Income, Mortgage and Education. It adds up your income replacement (annual income × the years your family needs support), outstanding debts, and an approximate college fund per child, then subtracts existing savings and any life insurance you already have. The result is your estimated coverage gap: the amount your family would need if you were gone tomorrow.
Should I include my mortgage in the debts number?
Yes. Your family's mortgage is usually their single biggest ongoing obligation, and this calculator's debts field is built to include it. Enter your total outstanding debts including the mortgage balance, car loans, student loans and credit cards — the coverage estimate assumes your family should be able to clear what you owe.
How is the DIME method different from the 10× income rule?
The 10× rule multiplies your salary by 10 and calls it done — fast but crude. The DIME method breaks the need into parts (debts, income replacement, education, minus savings), which usually produces a more accurate number. This calculator shows both, so you can see how far apart the two approaches land for your situation.
How often should I recheck how much life insurance I need?
Recalculate whenever a big life event changes the math: a new child, a mortgage, a raise, a divorce, or paying off a major debt. Most advisors suggest a full review every 2–3 years even without a big event, since income, debts and savings all move over time.
Keep reading: life insurance guides
Once you know your number, these guides help you buy it well:
- Term vs Whole Life Insurance: Which One Is Right for You? — cost differences, when each type makes sense, and how to shop.