Calculator
All fields are optional, but more detail improves the estimate.
Example Data
Sample scenarios to illustrate typical inputs and outcomes.
| Scenario | Loan Amount | APR | Term | Frequency | Extra Principal | Existing Coverage | Suggested Coverage Goal |
|---|---|---|---|---|---|---|---|
| Home loan protection | $250,000 | 7.25% | 20 years | Monthly | $0 | $50,000 | $265,000 (with 5% buffer) |
| Auto loan plus savings | $22,000 | 8.50% | 5 years | Biweekly | $20 | $10,000 | $15,000–$25,000 (depends on needs) |
| Debt cleanup focus | $40,000 | 0.00% | 4 years | Monthly | $50 | $0 | $45,000 (loan + debts + buffer) |
These rows are examples, not recommendations. Your needs may vary with family goals, employer benefits, and expected savings.
Formula Used
Loan Payment (per period)
When the interest rate per period is r, the loan amount is L, and the number of payments is n:
Payment = (r × L) / (1 − (1 + r)−n)
If r = 0, payment is L / n. Extra principal is added to the base payment.
Suggested Coverage (Loan + needs)
A practical estimate can include other debts, final expenses, and a short income cushion:
Base Need = Loan + Other Debts + Final Expenses + (Monthly Income × Months) − Existing Coverage − Liquid Assets
Suggested Coverage = max(0, Base Need) × (1 + Buffer%)
Suggested Coverage = max(0, Base Need) × (1 + Buffer%)
This tool also shows a “loan-only” target, which many level term policies can match.
How to Use
- Enter your current loan amount, APR, term, and payment frequency.
- Add any extra principal you plan to pay each payment period.
- Optionally include other debts, final expenses, and income months.
- Subtract existing coverage and liquid assets that could be used quickly.
- Click Calculate to see payment, interest, payoff date, and coverage goals.
- Use Download CSV or Download PDF to save outputs.
Reminder
Coverage needs depend on beneficiaries, employer benefits, and goals. Consider reviewing results with a qualified advisor.