About the Long-Term Care Cost Calculator
Long-term care — help with daily activities at home, in assisted living or in a nursing home — is one of the largest and least predictable costs in retirement, and in the US it is generally not covered by Medicare beyond short skilled-nursing stays. Care prices have historically risen faster than general inflation, so a cost that looks manageable today can be much larger by the time care starts.
This calculator projects the monthly cost of care from today’s price, your age, the age care is expected to begin and a care-cost inflation rate. It totals the cost over the years of care, subtracts income you will still receive (such as Social Security or a pension) and any long-term care insurance benefit, and tells you how big a fund you need when care begins and how much to save each month until then.
The default monthly cost is a placeholder in the range of a US nursing home room; costs differ enormously by state and type of care, so replace it with local prices for home care, assisted living or a nursing home. Insurance benefits and other income are assumed to stay flat, which is conservative.
With the default inputs, the total cost of care is $667,519.05. Change any value above to recalculate instantly.
How to use the long-term care cost calculator
- 1Enter your age and the age you expect care might begin.
- 2Enter today’s monthly cost for the type of care in your area.
- 3Choose how many years of care to plan for and a care inflation rate.
- 4Add any long-term care insurance benefit and income available during care.
- 5Read the total cost, the fund needed at the start of care and the monthly saving target.
Formula and method
Today’s monthly cost C is grown at the care inflation rate g for the Y years until care starts, and for each further year of care. The total cost sums twelve months of each year’s price. The uncovered cost subtracts your monthly insurance benefit and other income from each month’s price (never below zero).
The fund needed when care begins is the present value of those uncovered yearly costs, paid at the start of each year and discounted at your savings return r, because money not yet spent keeps earning. Savings already earmarked grow monthly until care starts, and the monthly saving uses the future value of an annuity to close any remaining gap.
- C
- Monthly cost of care in today’s dollars
- g
- Annual care-cost inflation
- Y
- Years until care begins
- r
- Annual return on savings
Worked examples
Age 60, planning for 3 years of care at 80
At 3.5% care inflation, $9,000 a month today becomes about $17,908 in 20 years. Three years of care totals roughly $667,519; after $2,500 a month of income, $577,519 must come from savings. A fund of about $549,743 at age 80 covers it, which takes around $1,337 a month saved at 5%.
Insurance policy plus existing savings
Four years of care starting at 85 costs about $731,143. A flat $4,000 monthly insurance benefit plus $2,000 income covers part of it, leaving $443,143. $50,000 saved today grows substantially over 30 years, so only about $226 a month more is needed.
Care needed now
Two years at $10,000 a month rising 4% costs $244,800. Income of $3,000 a month covers $72,000, leaving $172,800; because the second year is paid a year later, about $169,385 set aside today at 4% is enough.
Frequently asked questions
How much does long-term care cost?+
It depends heavily on location and type of care. Nursing homes are the most expensive, assisted living is usually less, and in-home care depends on the hours needed. Get local quotes and use them as the monthly cost input.
Does Medicare pay for long-term care?+
No. Medicare covers only limited skilled nursing facility care after a qualifying hospital stay, not ongoing custodial care. Medicaid does pay for long-term care, but only once income and assets fall below strict state limits.
How many years of long-term care should I plan for?+
Many people need care for a few years, some need none, and a minority need care for five years or longer. Planning for around three years is common; test a longer period to see the worst case.
Is long-term care insurance worth it?+
It can protect savings from a long, expensive care need, but premiums are significant and can rise. It tends to make most sense for people with moderate to substantial assets they want to protect; compare the premium with the fund this calculator says you would need.
Why is care cost inflation higher than normal inflation?+
Long-term care is labor-intensive, so its price tracks care-worker wages, which tend to rise faster than prices in general. Using an inflation rate of 3–5% a year is a common planning assumption; test a higher rate to see the downside.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.