Elder Care Cost Planning
Care costs to age 85 and beyond.
Grow today's monthly care price by a yearly rate you choose and see the cost year by year from the age care starts to age 85 or later, plus the cumulative total and how much of it is compounding.
Your numbers
Result
Fill the form and press Calculate.
Cost at age a = today's monthly cost x (1 + growth)^(a - current age). At 3 percent a year, a $5,000 monthly bill today becomes $6,719.58 a month at age 80.
Not financial, legal, insurance or medical advice. This is arithmetic on the numbers you enter. It is not a care assessment, a quote, or a recommendation. Talk to a qualified financial planner, elder law professional, insurance adviser or your care team before you commit money or choose care.
Worked example
Care costs $5,000 a month today for a 70-year-old and starts at 80, running to 85. At 3% a year the monthly cost is $6,719.58 at 80 and $7,562.95 at 84. Over the five years the total is $428,102.07, against $300,000.00 if prices never rose, so growth accounts for $128,102.07 of it.
How it works
For each age from the care start age up to, but not including, the end age: monthly = today's monthly cost x (1 + growth)^(age - current age); annual = 12 x monthly. The cumulative column adds the annual costs. The no-growth total is today's monthly cost x 12 x years of care. Prices of different kinds of care can grow at different rates; use one rate per run.
Sources
Compounding arithmetic on the numbers you enter. No inflation data or care prices are built in; this is an illustration, not a forecast.
FAQ
How do I project the cost of care to age 85?
Grow today's monthly cost by a yearly percentage for each year until the age care is needed, then add the yearly costs from that age to 85.
What growth rate should I use?
This tool does not pick one. Try a low, middle and high rate to see the range. The result is an illustration of compounding, not a forecast.
Why does the table start at the care start age?
You may pay nothing until care begins, but prices keep rising in the meantime, so the first year of care already includes those years of growth.
Can I project beyond age 85?
Yes. Choose 90, 95 or 100 as the end age.
Does this cover taxes or income?
No. It shows only the cost. Use the home equity runway calculator to see how long savings and equity can fund it.