Calculate Three Planning Gaps
Your exact entries stay in this browser. The calculator does not submit these values or require contact information. With analytics consent, it records only coarse result ranges—not the amounts entered.
What our source review found
A needs-based mortgage-protection estimate measures the survivor shortfall rather than copying the loan balance. A full payoff and a temporary housing-payment runway are alternative strategies, while a separate household-support baseline shows non-housing needs. Visible timeframes and subtractions prevent hidden assumptions and double-counting.
- A mortgage payoff amount can differ from the current balance because of accrued interest and unpaid fees. [1]
- Total monthly home cost can include principal, interest, taxes, homeowners insurance, mortgage insurance, and separately paid association fees. [2]
- Build income support from a user-selected monthly shortfall and timeframe, then add debts, education or caregiving, and transition needs. [3]
- Subtract only life insurance and savings reasonably available and intended for survivors. [4]
- A zero or positive result reflects the entries—not a premium, approval, sufficiency decision, or recommendation. [5]
The direct answer: start with the survivor shortfall
Your current mortgage payoff can be a useful starting point, but it is not an automatic coverage answer. Add the housing, income, transition, debt, final-expense, education, and caregiving needs survivors may face, then subtract existing life insurance and savings already dedicated to those needs. The remainder is an educational gap—not a recommendation.
Compare three paths without combining them
The calculator shows a full-payoff path, a temporary housing-payment runway, and a household-support baseline without housing. The household subtotal is already included in both housing paths. Choose the result that matches the decision being explored; do not add the three results together. None is a premium quote or prediction of eligibility.
How the formulas work
Full-payoff scenario
Payoff amount + post-payoff housing reserve + household-support subtotal − existing life insurance − dedicated savings
Housing-payment runway
Total monthly home cost × runway months + household-support subtotal − existing life insurance − dedicated savings
Household support without housing
Monthly non-housing shortfall × support months + debts + education/caregiving + final/transition costs − existing life insurance − dedicated savings
Use a payoff amount—not a statement balance
The payoff amount is the figure needed to satisfy the mortgage on a particular date. It can differ from the current principal balance because accrued interest, unpaid fees, and timing may affect it. Request the current figure from the mortgage servicer before modeling a full payoff.
Build the monthly home cost completely
A total mortgage payment commonly includes principal and interest plus escrowed property taxes, homeowners insurance, and mortgage insurance when applicable. Add HOA dues or other housing costs paid separately if survivors would still face them during the runway.
Choose timeframes instead of hidden assumptions
Enter the number of months survivors may need housing payments and non-housing support. The calculator does not silently apply a salary multiple, replacement percentage, inflation rate, investment return, or assumed benefit. A 30-year mortgage does not automatically require a 30-year policy.
Test the estimate against real household choices
Ask what the benefit should make possible: paying off the loan, funding a limited period of payments, preserving time to refinance or sell, downsizing without a rushed decision, supporting education or caregiving, or keeping a transition reserve. Compare scenarios instead of assuming every household needs the exact loan balance.
Keep the full household picture in view
Review the financial contribution of each homeowner, including income, childcare, household work, and access to benefits. Also review other debts, final expenses, education or caregiving goals, existing individual and workplace life insurance, and savings intended for survivors. Use the household inventory when you need to organize the non-housing inputs before returning to this calculator.
Recalculate after major changes
Review the estimate after a refinance, move, major principal payment, birth, marriage, divorce, job or benefit change, or a substantial change in savings or existing insurance. A planning estimate is most useful when its inputs still match the household.
Calculator FAQs
Is this a mortgage protection premium calculator?
No. It compares three educational survivor-funding gaps. It does not estimate premiums, eligibility, approval, policy availability, or a recommended coverage amount.
Should coverage equal my mortgage balance?
The mortgage balance can be a starting point, but an educational estimate may be higher or lower after considering continuing housing costs, income needs, other obligations, existing insurance, dedicated savings, and the household's plans.
Why does the calculator show three results?
A full payoff and a temporary housing-payment runway are alternative housing plans. The third result shows broader household support without either housing plan. The same household-support subtotal is already included in both housing results, so the three totals should not be added together.
Does the calculator save or submit my numbers?
No. The calculation runs in your browser and does not require contact information. If you consent to analytics, the site records only coarse result ranges—not the amounts entered.
What does a zero result mean?
It means the resources entered equal or exceed the needs entered for that scenario. It does not prove that coverage is unnecessary, sufficient, available, or suitable.
Should both homeowners estimate a coverage need?
Evaluate the financial contribution of each person, including income, childcare, household work, and access to benefits. A non-borrowing or non-earning partner may still leave a meaningful financial gap.
Should I use my mortgage balance or payoff amount?
Use a current payoff amount when modeling a full payoff. The Consumer Financial Protection Bureau explains that it may differ from the current balance because it can include accrued interest and unpaid fees.
What belongs in total monthly home cost?
Include principal and interest plus property taxes, homeowners insurance, applicable mortgage insurance, and separately paid HOA dues when relevant.
How often should I recalculate?
Review the estimate after a refinance, move, major principal payment, birth, marriage, divorce, job change, benefit change, or substantial change in savings or existing insurance.
Does either result recommend how much insurance to buy?
No. Each result is an educational gap based only on the numbers entered. Suitability also depends on the household, budget, existing resources, product terms, and professional guidance.
Sources
We prioritize regulators, government agencies, and primary consumer guidance. Links open the original source.
- What Is a Payoff Amount and Is It the Same as My Current Balance?Consumer Financial Protection Bureau · Accessed August 25, 2026
- Principal-and-Interest Payment vs. Total Monthly PaymentConsumer Financial Protection Bureau · Accessed August 25, 2026
- Loan Estimate ExplainerConsumer Financial Protection Bureau · Accessed July 22, 2026
- Life Insurance Consumer GuideNational Association of Insurance Commissioners · Accessed August 25, 2026
- Life InsuranceNational Association of Insurance Commissioners · Accessed August 25, 2026
- Consumer's Guide to Life InsuranceNational Association of Insurance Commissioners · Accessed August 27, 2026
- Life Insurance GuideCalifornia Department of Insurance · Accessed August 27, 2026
- Insurance Needs CalculatorU.S. Department of Veterans Affairs · Accessed August 27, 2026