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Interactive guide · Health & Care

How to Calculate Long-Term Care Cost

Projected cost of care by setting, and whether insurance or self-funding wins.

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The formula

How this number is built

total = monthly cost × setting factor × (1 + inflation)^years until care × 12 × years of care
Step by step

Calculating it yourself

Step 1

Use local cost surveys rather than national averages; regional variation is enormous.

Step 2

Choose the setting realistically — most people move through more than one.

Step 3

Check whether any policy quoted includes inflation protection, and at what rate.

Step 4

Compare insuring against investing the same premium, including the chance care is never needed.

Questions

What people ask next

Does health insurance cover long-term care?

Generally not. Medical insurance covers treatment, not custodial care, which is what most long-term care is.

Is a hybrid policy better?

Hybrid life and care policies return something if care is never needed, at a higher premium. It is a different trade rather than a strictly better one.

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