Long-Term Care Cost Projection Calculator
This calculator projects the future daily and monthly cost of long-term care by inflating today's cost at an annual rate over a specified number of years. Long-term care costs are rising faster than general inflation, making early planning critical. The projection formula applies compound annual growth to the current daily cost, then multiplies by the care duration (days per year) and the care period (number of years receiving care) to estimate total future cost. Enter the current daily care cost, inflation rate, years until care is needed, and the duration of care to see the total projected expense.
LTC cost projection formula
Future daily cost = Daily cost x (1 + inflation rate)^years until care
Total cost = Future daily cost x 365 x care duration years
The compound growth formula inflates today's cost to what it will be when care begins. Multiplying by 365 days and the care duration gives the total projected out-of-pocket expense, unadjusted for any insurance benefits.
Planning for long-term care costs
- The national median private nursing home cost was approximately $9,733 per month ($320 per day) in 2023, according to CMS and industry surveys.
- At 4 percent annual inflation, a $320 daily cost grows to about $854 per day in 25 years.
- LTC insurance premiums are lowest when purchased between ages 45 and 60; waiting significantly increases rates and health qualification risk.
- Hybrid life/LTC products combine death benefit and LTC coverage, addressing the use-it-or-lose-it concern of standalone LTC policies.
- A retirement portfolio withdrawal strategy must account for LTC as a potential large, lumpy expense that could deplete savings rapidly.
Long-term care costs: frequently asked questions
What does long-term care typically cost in the US?
According to the Genworth Cost of Care Survey and CMS data, the national median cost of a private nursing home room was approximately $9,733 per month in 2023. Assisted living facilities averaged about $4,774 per month. Home health aide costs averaged about $5,148 per month for 44 hours per week.
How fast do long-term care costs increase?
Long-term care costs have historically inflated at 3 to 5 percent annually, slightly above general CPI. The 2021 to 2023 period saw higher inflation due to healthcare labor shortages. Most LTC insurance policies offer an optional inflation protection rider (typically 3 to 5 percent compound) to keep pace with rising costs.
How long does the average person need long-term care?
HHS (Department of Health and Human Services) research indicates the average person needing LTC uses it for about 2 to 3 years. About 20 percent of people need care for more than 5 years, often due to dementia or Parkinson's disease. Women generally need care longer than men.
Does Medicare cover long-term care?
Medicare covers short-term skilled nursing care following a hospital stay (up to 100 days) but does not cover custodial long-term care. Medicaid covers LTC for those who qualify financially (typically after spending down assets). Private LTC insurance or hybrid life/LTC products cover the gap for those who plan ahead.
What is the benefit period in an LTC insurance policy?
The benefit period determines how long the policy will pay. Common options are 2, 3, 5, or unlimited years. A longer benefit period significantly increases the premium. Some hybrid (life+LTC) policies provide an LTC pool of money equal to a multiple of the death benefit.
Official sources
- CMS (Centers for Medicare and Medicaid Services): CMS Long-Term Care.
- HHS (US Dept of Health and Human Services): Long-Term Care Costs Overview.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.