Long-Term Care Cost Calculator
Project the future cost of long-term care: today's daily rate grown by inflation to your expected age, then multiplied by the daily care you anticipate needing.
How to use this tool
- Enter today's daily cost for the care setting you expect to need.
- Set an annual care-cost inflation rate (often 3-5%).
- Enter how many years from now care might begin and the days of care per year.
- Read the projected daily, monthly, and annual cost to plan or size coverage.
Long-term care — a nursing home, assisted living, or in-home aides — is one of the largest uninsured risks in retirement, and its cost rises faster than general inflation. This calculator grows today's daily rate by your assumed care-cost inflation to the year you expect to need care, then scales it to an annual and monthly figure so you can plan or size a long-term care insurance policy.
Formula
Inflation-adjusted long-term care cost
Future daily cost = Today's daily cost × (1 + inflation)years
Annual cost = Future daily cost × Days of care per year
Monthly cost = Annual cost ÷ 12
The daily rate compounds at the inflation rate, so even a modest 4% materially raises costs over a 20-year horizon.
How it works
The cost of long-term care has historically grown faster than the broader consumer price index, driven by labor-intensive caregiving. This calculator takes today's daily cost for the care setting you expect and compounds it at your chosen inflation rate over the years until you anticipate needing care, producing a future daily rate. Multiplying by the number of paid-care days per year and converting to a monthly figure gives a planning estimate for the annual cost you would face when care begins.
The projection is intentionally simple: it estimates the cost in the first year of care, not the lifetime total, which also depends on how many years of care you ultimately need (the average stay is a few years, but some last much longer). It does not subtract what Medicare, Medicaid, family support, or a long-term care insurance benefit might cover. Use it to gauge the scale of the exposure and to set a target daily benefit when shopping for LTC insurance or hybrid life-with-LTC policies.
This is general information, not financial or medical advice. Actual costs vary widely by region and care type, and inflation in this sector is unpredictable. Revisit the projection periodically and validate local cost data from a recent cost-of-care survey before committing to a plan.
Worked example
$300/day care, 4% inflation, 20 years out, full-time
- Future daily cost: $300 × (1.04)20 = $300 × 2.191123 ≈ $657.34.
- Annual cost: $657.34 × 365 days ≈ $239,927.98.
- Monthly cost: $239,927.98 ÷ 12 ≈ $19,994.00.
Projected annual cost at start: $239,927.98
Future daily cost from $300/day today, by inflation and horizon
| Years out | 3% inflation | 4% inflation | 5% inflation |
|---|---|---|---|
| 10 | $403.17 | $444.07 | $488.67 |
| 20 | $541.83 | $657.34 | $795.99 |
| 30 | $728.18 | $973.02 | $1,296.58 |
Key terms
- Long-term care
- Help with daily activities — bathing, dressing, meals — provided in a facility or at home over an extended period.
- Care-cost inflation
- The annual rate at which long-term care prices rise, historically faster than general inflation.
- LTC insurance
- A policy that pays a daily or monthly benefit toward long-term care costs, helping protect retirement assets.
- Hybrid policy
- Life insurance or an annuity with a long-term care rider, combining a death benefit with LTC coverage.
Frequently asked questions
- Why project long-term care costs decades ahead?
- Because care prices compound faster than general inflation, the cost when you actually need care can be several times today's rate. Planning early lets you size savings or insurance to a realistic future number.
- Does this include what Medicare or Medicaid would pay?
- No. Medicare covers only limited short-term care, and Medicaid requires spending down assets. This estimate is the gross cost; subtract any expected benefits to find your net exposure.
- Should I buy long-term care insurance?
- It depends on your assets and family situation. Those with moderate savings face the most exposure — too much to qualify easily for Medicaid, too little to self-fund. Use this projected cost to set a target daily benefit when comparing policies.