Disability Insurance Calculator
Your ability to earn is probably your biggest asset. This tool estimates the monthly benefit you would need if you could not work, subtracts any employer coverage, and shows the gap — plus the emergency fund your elimination period requires.
| Your current monthly income | — |
| Target monthly benefit | — |
| Covered by employer | — |
| Emergency fund for the waiting period | — |
Quick answer: Enough to replace about 60% of your gross income, minus any employer coverage. For a $60,000 salary that is roughly $3,000/month of target benefit; if your job provides none, that full amount is the gap to insure privately. Benefits on a policy you pay for are usually tax-free, so ~60% of gross often matches your take-home pay.
How much disability coverage you need
Benefit gap = (Monthly income × replacement %) − employer coverage
Disability insurance replaces part of your paycheck if illness or injury stops you working. Because your future earnings are usually worth far more than your car or even your home, protecting that income is often more important than people realize — and roughly 1 in 4 workers experiences a disabling condition before retirement.
- Replacement percentage: policies typically cover about 60% of income, not 100%. There's a reason — benefits from a policy you pay for with after-tax dollars are generally received tax-free, so 60% of gross often lands close to your take-home pay.
- Employer coverage first: many jobs include group long-term disability. Subtract it — but note it's usually taxable (the employer paid the premium) and ends when the job does, so a private policy on top fills a real gap.
- Elimination period: the waiting period (often 90 days) before benefits begin. That's the stretch your emergency fund has to cover, which is why we show it above.
The trade-offs to know
- Benefit period matters as much as the amount. A policy paying to age 65 is worth far more than one paying for 2 years — a serious disability can last decades.
- "Own-occupation" vs "any-occupation." Own-occupation pays if you can't do your job; any-occupation only pays if you can't do any job. Own-occupation costs more and protects more.
- Longer elimination period = lower premium, but only extend it as far as your emergency fund can bridge.
Pair this with the emergency fund calculator for the waiting period, and the life insurance calculator to protect your dependents if the worst happens.
Frequently asked questions
How much disability insurance do I need?
Enough to replace about 60% of your gross income, minus any employer coverage. For a $60,000 salary that is roughly $3,000/month of target benefit; if your job provides none, that full amount is the gap to insure privately. Benefits on a policy you pay for are usually tax-free, so ~60% of gross often matches your take-home pay.
Why do policies only replace about 60% of income?
To keep an incentive to return to work, and because benefits from a personally-paid policy are generally tax-free — so 60% of your gross income often lands close to your normal after-tax take-home pay.
What is an elimination period?
It is the waiting period (commonly 90 days) between becoming disabled and when benefits start paying. You need enough emergency savings to cover your expenses during that gap. A longer elimination period lowers the premium but requires a bigger cash cushion.
Is my employer disability coverage enough?
Often not. Group long-term disability is usually capped, is typically taxable when the employer paid the premium, and ends when you leave the job. Many people add a private policy to cover the gap and keep coverage that follows them between jobs.
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Last updated: 2026-07-11