Long-Term Care Cost Calculator

How it is calculated

Today's yearly price is inflated up to the year care starts, and then keeps rising by the same inflation during every year of care.

first-year cost F = current annual cost × (1 + i)n
total = F × [1 + (1 + i) + (1 + i)2 + … ] over the care years

i is the yearly cost inflation as a decimal (4% = 0.04) and n the years until care begins; zero means care starts now. The duration must be a whole number of years from 1 to 50, so 2.5 years gives no result. Inflation cannot be negative, and the current cost must be above zero. At 0% inflation the total is simply today's price times the number of years. Local price differences, care level, taxes and insurance payouts are not modelled.

Common mistakes

• Entering the monthly cost. The field is annual, so $9,000 a month must be entered as 108,000.
• Typing a care duration such as 2.5 years. The duration must be a whole number of years (1 to 50); round it first or the tool shows nothing.
• Using general inflation of 2-3% for care costs. The rate you enter drives the result strongly, and it applies both before care starts and during the care years.
• Entering the age at which care starts instead of the years until then. If you are 55 and expect care at 80, the field takes 25.
• Using the result as the amount of insurance to buy. It is a gross projected cost and does not account for savings, Medicare or Medicaid support, or the fact that you may never need care for the full duration.