Formula used
Uses a human-life-value approach: income multiplied by the chosen replacement period, plus liabilities and dependant goals, less existing life cover.
Example calculation
Rs 12 lakh annual income for 15 years, Rs 30 lakh of liabilities and Rs 40 lakh of goals produces a Rs 2.5 crore need before existing cover.
Related calculators and guides
You can cross-check this estimate using: salary in-hand calculator, Old vs New Tax Regime Calculator, 80C deduction calculator, EMI calculator, ITR-2 filing guide, emergency fund guide.
When this tool is useful
- When you want a fast estimate before making a financial or salary decision.
- When you want to compare different assumptions in seconds.
- When you want to understand the formula behind the result.
