Long-Term Care Calculator
Long-term care (LTC) represents one of the largest unplanned financial risks in retirement. The U.S. Department of Health and Human Services estimates that 70% of people turning 65 today will require some form of long-term care during their lifetime. The median duration of care is about 3 years, but 20% of people need care for more than 5 years. Without insurance, these costs can quickly deplete retirement savings. This calculator projects future LTC costs by applying an annual care cost inflation rate to today's care costs, then estimates the total cost for your projected care duration. You can also see the shortfall after applying your personal savings, giving you a target for how much LTC insurance coverage to seek.
LTC cost projection formula
Future Monthly Cost = Current Monthly Cost x (1 + Inflation Rate)^Years Until Care
Total LTC Cost = Future Monthly Cost x 12 x Care Duration (years)
Coverage Gap = max(0, Total LTC Cost - Available Assets)
Long-term care planning facts
- U.S. DHHS estimates 70% of 65-year-olds will need long-term care at some point.
- Medicare covers skilled nursing only after a 3-day hospital stay and for up to 100 days only.
- Medicaid covers LTC but requires asset spend-down to eligibility thresholds (varies by state).
- Hybrid life/LTC policies combine a death benefit with LTC coverage if benefits are unused.
- The average LTC insurance benefit period sold is 3 years; many policies offer inflation protection riders.
Long-term care: frequently asked questions
What does long-term care insurance cover?
Long-term care insurance covers the cost of assistance with activities of daily living (ADLs) such as bathing, dressing, eating, and mobility, or supervision for cognitive impairment. It covers care provided in a nursing home, assisted living facility, or at home by a professional caregiver.
How much does long-term care cost?
According to Genworth's annual Cost of Care survey, 2024 national median costs were approximately $9,800 per month for a private nursing home room, $5,500 for assisted living, and $6,200 for a home health aide (44 hours per week). Costs vary significantly by state and city.
Why does long-term care inflation matter?
LTC costs have historically grown faster than general inflation, at roughly 3-4% per year. A nursing home room costing $10,000 per month today could cost over $18,000 per month in 20 years at 3% annual growth. This inflation risk makes early planning critical.
Does Medicare cover long-term care?
Medicare covers only limited skilled nursing facility care after a qualifying hospital stay of at least 3 days and only for up to 100 days. After 20 days, a significant daily co-pay applies. Medicare does NOT cover custodial long-term care. Medicaid covers LTC but requires spending down most of your assets first.
When should I buy long-term care insurance?
Most financial planners recommend purchasing LTC insurance in your mid-50s to early 60s. Premiums are substantially lower at younger ages and you are more likely to qualify for coverage (health underwriting becomes more difficult with age). Waiting until after a health diagnosis may make coverage unavailable.
Official sources
- U.S. Department of Health and Human Services: What is Long-Term Care?.
- Medicare.gov: Skilled Nursing Facility Coverage.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.