Income Replacement Calculator
The lump sum that, safely invested, would replace a lost annual income for a set number of years after inflation.
Formula
This is the heart of life-insurance and survivor-planning math: how big a pot must a family hold so that, invested at a sensible return, it can pay out a steady inflation-protected income for a fixed period? Because withdrawals must keep pace with inflation, the tool discounts at the real return (return minus inflation), not the nominal rate — a subtlety that dramatically changes the answer. If the real return is near zero, the lump sum is simply income times years. Use it to convert an income-replacement goal into a concrete cover amount or retirement corpus.
Educational estimate, not financial advice. Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need income replacement calculator results fast? Analysts, founders, traders and finance professionals use the Income Replacement Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Income Replacement Calculator
The lump sum that, safely invested, would replace a lost annual income for a set number of years after inflation. This is the heart of life-insurance and survivor-planning math: how big a pot must a family hold so that, invested at a sensible return, it can pay out a steady inflation-protected income for a fixed period? Because withdrawals must keep pace with inflation, the tool discounts at the real return (return minus inflation), not the nominal rate — a subtlety that dramatically changes the answer. If the real return is near zero, the lump sum is simply income times years. Use it to convert an income-replacement goal into a concrete cover amount or retirement corpus. The governing relationship is Lump sum = Income × [1 − (1+rᵣ)⁻ⁿ] / rᵣ, rᵣ = (1+r)/(1+i) − 1. The Income Replacement Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Income Replacement Calculator
- 1Enter Annual income to replace ($), Years of replacement (yrs), Investment return (%), Inflation (%) into the Income Replacement Calculator.
- 2The result is computed automatically using Lump sum = Income × [1 − (1+rᵣ)⁻ⁿ] / rᵣ, rᵣ = (1+r)/(1+i) − 1 — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Income Replacement Calculator?
- ✓Computes income replacement calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Income Replacement Calculator?+
Income Replacement Calculator uses Lump sum = Income × [1 − (1+rᵣ)⁻ⁿ] / rᵣ, rᵣ = (1+r)/(1+i) − 1. This is the heart of life-insurance and survivor-planning math: how big a pot must a family hold so that, invested at a sensible return, it can pay out a steady inflation-protected income for a fixed period? The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Income Replacement Calculator need?+
Enter Annual income to replace ($), Years of replacement (yrs), Investment return (%), Inflation (%) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Income Replacement Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. Educational estimate, not financial advice. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Income Replacement Calculator?+
Because withdrawals must keep pace with inflation, the tool discounts at the real return (return minus inflation), not the nominal rate — a subtlety that dramatically changes the answer. If the real return is near zero, the lump sum is simply income times years. Use it to convert an income-replacement goal into a concrete cover amount or retirement corpus.
What is the Income Replacement Calculator based on?+
The method follows authoritative sources: Present value of a growing annuity / real-return discounting. The formula and references are shown on the page so you can verify and cite the result.
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