Disability insurance needs.

Worked example

Gross income is $6,000 a month. Replacing 60% gives $3,600; essential expenses are $3,500, so income is the larger target: $3,600. With an existing benefit of $1,800 the gap is $1,800 a month. A 90-day waiting period is 3 months of expenses, or $10,500; with $6,000 saved you are $4,500 short.

How it works

Target by income = gross monthly income x replacement %. Target by expenses = essential expenses / (1 - tax on the benefit). The larger is the target, and gap = target - existing benefit. Waiting-period cost = waiting days / 30 x essential expenses. Policygenius says a long-term disability benefit should equal about 60% of pre-tax salary, which it says roughly equals take-home pay because a personal policy’s benefit is not taxed as income; employer-paid plans and other countries can be taxed differently, so enter your own tax rate.

Sources and basis (opened 2026-10-08): arithmetic on the income, expenses and savings you enter. The 60% benchmark comes from Policygenius, “How much does long-term disability insurance pay?”.

FAQ

How much disability insurance do I need?

A common benchmark is a benefit of about 60% of pre-tax pay, checked against what your essential expenses actually cost each month. This calculator shows both and uses the larger.

Why 60% and not 100% of income?

Policygenius notes that a personal policy’s benefit is not taxed as income, so 60% of pre-tax pay is close to usual take-home pay. Insurers also limit the benefit.

What is the waiting or elimination period?

It is the time you must be disabled before benefits begin. You need savings or other income to cover that gap, which this tool totals.

Is my disability benefit taxed?

It depends on who pays the premium and where you live. Enter the tax rate that applies to you, or 0 if the benefit is tax-free.

Does this count government benefits?

Not automatically. Add any other monthly benefits you would receive to the existing benefit field.