Insurance as a percent of income.

Worked example

Gross income is $90,000 and take-home $68,000. Monthly premiums are auto $140, home $180, life $45 and disability $60: $425 a month, $5,100 a year. That is 5.7% of gross income and 7.5% of take-home. Home is the largest at 42.4% of the total.

How it works

Yearly premiums = each amount x 12 if entered monthly (or as entered if yearly). Share of gross = yearly total / gross income x 100; share of take-home = yearly total / take-home income x 100. Each policy’s share is its yearly cost divided by the total. No published rule for what share of income should go to insurance is used, because the right amount depends on what you need to protect.

Sources and basis (checked 2026-10-08): arithmetic on the premiums and incomes you enter; no published benchmark is used.

FAQ

What percent of income should go to insurance?

There is no official figure. The right amount depends on your assets, dependants, debts and what you need to protect. Use the result to compare against your own budget.

Should I use gross or take-home income?

Both are shown. Gross income is easier to compare with other households; take-home income shows the real pressure on your budget.

What counts as insurance here?

Whatever premiums you pay yourself: auto, home or renters, life, disability, your share of health and dental, and any other policy. Leave unused rows at 0.

Are employer-paid premiums included?

Only if you enter them. For your own cost, enter only what comes out of your pay or pocket.

How do I lower my total?

Compare quotes, check deductibles and drop cover you no longer need. See the deductible calculator for the trade-off.