See how inflation changes the protection family needs. Model income, debts, goals, assets, and coverage. View scenarios, then download a clear report for planning.
The inflation factor estimates how much costs rise over time using compound growth: Inflation Factor = (1 + i)t, where i is the inflation rate and t is years.
The coverage gap today is: Gap = max(0, Total Need − (Assets + Current Coverage)).
The future coverage target is: Future Target = Gap × (1 + i)t. A present-value equivalent can be shown by discounting with an expected return r: PV = Future Target ÷ (1 + r)t.
| Example input | Value | Example output | Value |
|---|---|---|---|
| Annual income needed | $30,000.00 | Gap today | $575,000.00 |
| Income years | 20 | Inflation factor (15y at 4%) | 1.8009× |
| Debts + expenses + goals | $35,000.00 | Future target | $1,035,517.50 |
| Assets + current coverage | $60,000.00 | PV equivalent (15y at 6%) | $433,183.74 |
Inflation compounds, so small rates matter over long horizons. With 4% inflation, the factor after 10 years is about 1.4802×, and after 20 years about 2.1911×. This calculator applies (1+i)^t to translate today’s coverage gap into a future-dollar target aligned with your planning horizon. At 2% inflation, 20-year factor is 1.4859×, showing why low assumptions can still lift targets substantially for long-lived household costs.
Start with needs in today’s dollars. Income support equals annual income needed multiplied by support years. Add debts, final expenses, education funding, and other goals. Then subtract liquid assets and existing coverage. If needs are $635,000 and resources are $60,000, the baseline gap is $575,000. Keeping inputs in today’s dollars avoids mixing price levels and makes comparisons consistent across categories.
The future target equals the baseline gap times the inflation factor. Using the example gap of $575,000 and 15 years at 4%, the factor is about 1.8009×, producing a future target near $1,035,517.50. This value represents the nominal benefit that keeps purchasing power comparable at the horizon. If your horizon is shorter, the factor shrinks and coverage may suffice.
Some families plan to invest assets while coverage is needed later. The present-value equivalent discounts the future target by (1+r)^t using an expected return. With a 6% return and 15 years, the discount factor is about 2.3966×, so the PV equivalent of $1,035,517.50 is roughly $432,000–$433,000. When returns trail inflation, the real purchasing power of assets declines, raising coverage pressure.
Scenario lines help you see sensitivity. If the baseline gap is fixed, a 5-year target at 4% inflation is about 1.2167× the gap, while a 30-year target is about 3.2434×. Compare the inflated targets with PV equivalents to evaluate whether saving, coverage, or a mix best matches your risk tolerance and timeframe. Use the chart to spot breakpoints where targets jump quickly.
It is the multiplier (1+i)^t that converts today’s gap into future dollars. It shows how much purchasing power your benefit must cover after t years at inflation rate i.
PV converts the future target back to today’s dollars using your return assumption. It helps compare a future insurance need with the size of assets you might invest instead of buying coverage.
You can, but this version inflates the final gap. Keep inputs in today’s dollars for consistency. If one category grows faster than inflation, increase that input or choose a higher inflation assumption.
Match it to dependents’ needs and your transition plan. Many families use the years until children are independent, a spouse’s retirement age, or the time needed to replace skills and stabilize cash flow.
Enter coverage you expect to remain in force. If employer coverage ends when you leave a job, exclude it or reduce it. For term policies, align the horizon with the policy term to avoid gaps.
Yes for scenario testing, but interpret cautiously. Deflation lowers future targets, while negative returns raise PV equivalents. Use realistic assumptions and rerun multiple cases to understand the range of outcomes.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.