This calculator uses the Capital Needs Analysis (CNA) method — the same approach used by CFP® professionals — to estimate your total life insurance coverage need.
- Income replacement — Present value of after-tax income your family would need, net of survivor income.
- Future costs — Final expenses and education costs adjusted for inflation to reflect real future dollars.
- Survivor offset — Spouse income and Social Security survivor benefits reduce the gap.
Client Information
Liabilities
Outstanding debts that would need to be paid off. Today's balances — no inflation adjustment needed.
Income Replacement
Annual income your family would need and for how long. We calculate the present value using inflation-adjusted discounting.
Final Expenses
Funeral, medical, legal costs in today's dollars. We'll adjust for inflation to life expectancy.
Education Needs
Future education costs in today's dollars. Education inflation averages ~5%/year.
Legacy / Inheritance
Additional amounts to leave to heirs or charity. Lump sum — not inflation adjusted.
Available Assets
Resources currently available that could cover needs.
Assumptions
These rates drive the PV and FV calculations. Defaults reflect common CFP® planning assumptions.
Real after-tax discount rate: nominal return reduced by taxes, then adjusted for inflation via Fisher equation.
Coverage Gap Analysis
Capital Needs Analysis (CNA) is the standard methodology used by CFP® professionals.
Income Replacement: Insured's pre-tax income minus surviving spouse income and SS survivor benefits = net shortfall. Apply tax rate for after-tax need. Discount at real after-tax rate over replacement years using present value of annuity formula.
Real After-Tax Rate: Nominal return × (1 − tax), then Fisher-adjusted: (1 + r_after_tax) / (1 + inflation) − 1.
Final Expenses: Today's dollars × (1 + inflation)^(life expectancy − current age).
Education: Today's dollars × (1 + education inflation)^(years until needed).
Liabilities & Legacy: Face value — current balances and target amounts.
Gap = Total Needs − Available Assets.
This calculator provides estimates only and does not constitute advice. A common guideline is 7–10× annual salary — this tool provides a tailored estimate based on your specific inputs.
Important Information
This calculator provides general information about life insurance needs. Accuracy depends on your inputs. Results may vary by individual circumstances and do not ensure eligibility for any specific product.
Not intended as tax, legal, or financial advice. Consult qualified professionals regarding your situation. Investments with higher return potential involve higher risk. Fees and taxes are not included.