Disability Insurance Calculator
Find the monthly disability benefit you need to replace your income if you could not work, after any coverage you have.
Want to understand the concept, not just the number? Read The Insurance Decisions Guide .
How it's calculated
Disability insurance replaces part of your income if an illness or injury stops you from working. It is the most overlooked coverage in most financial plans, even though your ability to earn is usually your largest asset. The goal is to size a monthly benefit that keeps your household running if your paycheck disappears.
Most policies replace around 60 percent of gross income, and there is a reason that covers more than it sounds. Benefits from a policy you pay for yourself are typically tax-free, so 60 percent of your gross often replaces most of your take-home pay. Take the default. On a $90,000 income, 60 percent is $54,000 a year, or $4,500 a month. With no existing coverage, that full $4,500 is the monthly benefit to buy. Over the 25 years until retirement, that benefit protects $1,350,000 of income, which is what is really at stake.
If you already have some coverage, often a group policy through work, subtract it, since you only need to fill the gap. Group coverage is a good start but is frequently limited, may be taxable if your employer pays the premium, and usually ends if you leave the job, so many people add an individual policy to be safe. Adjust the replacement rate and existing coverage here to find the benefit that fits your situation.
Assumptions
- The target benefit is your income times the replacement rate. The need is that target minus any coverage you already have.
- The total income protected is the monthly benefit over the years until retirement. Benefits you pay for personally are usually tax-free, which is why 60 percent of gross often replaces most take-home pay.
Last updated: 2026-08-08
These assumptions follow our general methodology.
Frequently asked questions
How much disability insurance do I need?
A common target is a benefit equal to about 60 percent of your gross income, minus any coverage you already have. Because benefits from a policy you pay for are usually tax-free, that 60 percent often replaces most of your take-home pay. This calculator sizes the monthly benefit for you.
Why replace only 60 percent of my income?
Insurers cap benefits below full income so you keep an incentive to return to work, and because benefits from a policy you pay for yourself are typically tax-free. Sixty percent of gross, with no tax taken out, tends to land close to your normal take-home pay.
Isn’t my work coverage enough?
Often not. Group disability coverage through an employer is a good base but is frequently limited to a portion of income, may be taxable if your employer pays for it, and usually ends when you leave the job. Many people add an individual policy to close the gap and keep coverage that follows them.
What is the difference between short and long-term disability?
Short-term disability covers a few weeks to months after an illness or injury, while long-term disability picks up after that and can last years, sometimes to retirement. The big financial risk is a long-term disability, which is what this calculator sizes coverage for.