Life Insurance Calculator
Estimate how much life insurance you need with the DIME method, adding debt, income, mortgage, and education, then subtracting what you have.
How it's calculated
DIME is a quick way to size a life insurance policy. It stands for Debt, Income, Mortgage, and Education, the four things a policy would need to cover if you were gone. Add them up, subtract what you already have, and the difference is the coverage to buy.
Take the default. Ten years of an $80,000 income is $800,000. Add $20,000 of other debt, a $250,000 mortgage, and $100,000 to educate the kids, and the total need is $1,170,000. With $50,000 of coverage and savings already in place, you would look for about $1,120,000 more.
DIME is deliberately simple, so treat it as a starting point rather than a precise figure. It does not subtract a surviving spouse income or count future raises, and it assumes the income is replaced in a lump sum. Term life insurance is usually the cheapest way to cover a need like this for the years your family depends on you.
Assumptions
- The need is debts plus years of income plus the mortgage plus education costs, minus coverage and savings you already have.
- This does not subtract a surviving spouse income or count future raises, and it assumes income is replaced as a lump sum. Treat it as a starting estimate.
Last updated: 2026-08-08
These assumptions follow our general methodology.
Frequently asked questions
What does DIME stand for?
Debt, Income, Mortgage, and Education. You add the debts to clear, several years of income to replace, the remaining mortgage, and the cost to educate your children, then subtract coverage you already have.
How many years of income should I replace?
A common choice is 10 years, long enough to give your family time to adjust. Younger families with small children often choose more, since the income would be missed for longer.
Should I buy term or whole life insurance?
For covering a need like this, term life is usually the right tool. It is far cheaper and lasts for the years your family depends on your income. Whole life is more expensive and mixes insurance with an investment, which most people do not need.
Does this replace a full financial plan?
No. DIME is a fast estimate, not a complete analysis. It leaves out a surviving spouse income, investments beyond what you enter, and future changes. Use it to get in the right range, then refine.