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Calcimator

DIME Method Calculator

Use the DIME formula (Debt, Income, Mortgage, Education) to quickly estimate your life insurance coverage needs.

Inputs

$
$
$
$

Results

Total DIME Coverage Needed

$1,190,000.00

≈ 3 average U.S. homes

D — Debt$30,000.00
I — Income Replacement$750,000.00
M — Mortgage$250,000.00
E — Education$160,000.00
How to Use This Calculator
  1. Enter your total debts (excluding the mortgage) such as car loans and credit cards.
  2. Enter your annual income and the number of years you want to replace it for dependents.
  3. Input your mortgage balance and estimated years of education funding needed.
  4. Review the DIME total — Debt + Income replacement + Mortgage + Education.
  5. Compare the DIME figure to your current coverage to identify any gap.

How the result changes with Annual Income

Annual IncomeTotal DIME Coverage Needed
$100,000.00$1,440,000.00
$350,000.00$3,940,000.00
$650,000.00$6,940,000.00
$900,000.00$9,440,000.00

What each input means

Total Debts (excl. Mortgage)
All debts excluding your mortgage: car loans, student loans, credit cards, etc.
Annual Income
Your current gross annual income.
Years of Income to Replace
Number of years your family needs income replacement. Typically until youngest child is 18.
Mortgage Balance
Remaining balance on your home mortgage.
Education Cost per Child
Estimated 4-year college cost per child. Average public university is ~$80,000-$100,000.
Number of Children
Number of children who will need college funding.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Total Debts (excl. Mortgage) = 30000, Annual Income = 75000, Years of Income to Replace = 10, Mortgage Balance = 250000 = 6 input(s) provided
  2. Calculate Total DIME Coverage Needed
    Total DIME Coverage Needed
    1190000 = $1,190,000
  3. Calculate D — Debt
    30000 = $30,000
  4. Calculate I — Income Replacement
    750000 = $750,000

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