Long-Term Care Cost Calculator
Project what long-term care will cost when you need it, the lump sum or monthly saving to self-fund it, and whether a long-term care policy’s benefit pool covers the need — with Medicaid and Medicare realities.
| Cost of care today | — |
|---|---|
| Projected monthly cost at age care begins | — |
| Total projected cost of care | — |
| Lump sum to set aside today | — |
| Monthly saving needed until care begins | — |
| Insurance: benefit pool at claim | — |
| Insurance: premiums paid until claim | — |
| Insurance covers what share of the need? | — |
| Self-fund vs insure | — |
| Medicaid note | — |
In short
Long-term care costs about $6,000 a month for a home health aide or assisted living and over $10,000 for a private nursing-home room in 2025, rising 4–6% a year; roughly 70% of people turning 65 will need some care, averaging about three years. Medicare covers at most 100 days of skilled nursing, and Medicaid pays only after assets are spent down, so families either self-fund (realistic above $2–3 million) or buy traditional or hybrid LTC insurance in their mid-50s to early 60s.
Who this is for: Americans in their 50s and 60s planning for care costs, and adult children planning for parents.
Planning for long-term care costs
| Setting (2025 national median) | Monthly | Annual |
|---|---|---|
| Home health aide, 44 hours a week | ≈ $6,500 | ≈ $78,000 |
| Assisted living | ≈ $5,900 | ≈ $71,000 |
| Nursing home, semi-private room | ≈ $9,300 | ≈ $112,000 |
| Nursing home, private room | ≈ $10,600 | ≈ $127,000 |
- Costs have risen 4–6% a year — faster than general inflation — so a 55-year-old should plan on roughly triple today's prices by the time care is needed.
- The average need is about three years; a 3-year benefit period with compound inflation protection covers the typical case, while the uninsured tail (5+ years) is what bankrupts families.
- Traditional LTC premiums for a 55-year-old couple run about $3,000–5,000 a year for $165,000 of initial benefits each with 3% inflation; hybrids cost more but cannot be cancelled or repriced.
- Self-funding is realistic above roughly $2–3 million of investable assets; between $300,000 and $2 million, insurance protects the estate and the healthy spouse.
See also: Retirement Savings Calculator, Medicare IRMAA Calculator 2026.
Assumptions
- Cost at care age = today's cost × (1 + inflation)^years; total = that cost over the care years with inflation.
- Lump sum = present value of care costs at the return; monthly = annuity payment to reach that present value by care age.
- Policy pool = daily benefit × (1 + rider)^years × 365 × benefit years; premiums compounded at the return for comparison.
Worked example
In 27 years the $5,900 becomes about $17,000 a month; three years of care cost about $637,000. Setting aside about $162,500 today at 5% — or about $904 a month for 27 years — would fund it. The policy's $250 daily benefit grows to $555 a day, a pool of about $608,000, covering about 95% of the need; premiums total $86,400 over 27 years (about $184,000 if invested instead). Insurance transfers the risk for less than a third of the self-funding sum, but pays nothing if care is never needed.
Frequently asked questions
How much does long-term care cost?
Roughly $6,000 a month for a home health aide or assisted living and $10,000+ for a private nursing-home room in 2025, rising 4–6% a year — so $15,000–25,000 a month by the 2050s.
Does Medicare cover long-term care?
No — only up to 100 days of skilled nursing after a 3-day hospital stay, and home health for skilled needs. Custodial care (bathing, dressing, supervision) is not covered.
When should I buy long-term care insurance?
Between about 55 and 65, while you can pass underwriting; premiums roughly double between 55 and 65 and about a third of applicants over 65 are declined.
What is a hybrid life/LTC policy?
A life insurance policy whose death benefit can be drawn down for care, with fixed premiums and a refund of premium option — more expensive than traditional LTC but with no risk of rate increases.
Are LTC insurance premiums tax-deductible?
Tax-qualified premiums count as medical expenses up to age-based limits (roughly $2,000–6,000 a year), deductible above 7.5% of AGI, or fully for the self-employed; HSA funds can pay them.
What is the Medicaid look-back?
Gifts made within five years of applying for Medicaid long-term care trigger a penalty period of ineligibility.
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