Disability Income Gap Calculator
If you could not work, how long would you last and how big is the income gap? This tool computes your net disability benefit, the monthly shortfall against essentials, your emergency-fund runway, and the protection gap.
Your decision
You have a protection gap. Your net benefit would be $2,808/mo against $4,500 of essentials — a $1,692/mo shortfall — and your savings would last about 4 months.
Months you could cover
Watch4 mo
How long savings plus benefits sustain essential expenses.
Monthly shortfall
Costly$1,692
Essential expenses minus your net disability benefit.
Net monthly benefit
$2,808
after tax
Your employer benefit, adjusted if taxable.
Coverage gap over period
Costly$34,032
24 mo
Total cash shortfall over your desired coverage window.
Ranked options
- $20,304/yr
#1Buy about $1,692/mo of additional coverage
Closes the monthly income gap between your benefit and essential expenses.
Confidence: MediumEffort: MediumRisk: Low #2Build a larger emergency fund to bridge the waiting period
Aim for at least the waiting period (3 months) of full essential expenses in cash so benefits can start before savings run out.
Confidence: HighEffort: MediumRisk: Low
Watch-outs
- • Employer-paid disability benefits are usually taxable, so your real benefit is lower than the headline percentage. Privately-paid policies generally pay tax-free.
- • Estimates only, not insurance advice. Benefit taxation and elimination periods vary by policy — check your plan documents.
Assumptions used
- Monthly take-home income
- $6,000
- Essential monthly expenses
- $4,500
- Emergency savings
- $15,000
- Employer coverage
- 60% of income
- Benefit taxable
- Yes (−22% assumed)
- Waiting period
- 90 days
Estimates based on your assumptions above — roughly indicative, not financial, tax, or legal advice.
Why this matters
Disability is far more common during working years than most people assume, yet long-term disability is the most overlooked insurance gap. Employer coverage usually replaces only part of your income — and if the employer pays the premium, the benefit is taxable, shrinking it further.
Frequently asked questions
This tool produces estimates based on the assumptions you enter. It is not financial, tax, or legal advice. Actual rates, fees, and outcomes depend on your lender, account terms, and approval.