Long-Term Care Cost Projection Calculator
Project the future cost of long-term care — nursing home, assisted living or home care — inflated to the age you may need it and over the expected stay.
How it works
Annual cost when needed = current annual cost × (1 + inflation)^years until · Total = that cost summed and inflated over the expected years of care
Long-term care is the expense most likely to derail a retirement plan, because a single multi-year stay can cost several hundred thousand dollars and is largely not covered by Medicare. Two forces compound the number: the years until you might need care inflate the sticker price well above today’s rates, and the duration of the stay multiplies it. Seeing the projected total is what makes the case for insurance, earmarked savings, or a family plan long before care is needed.
Worked example
$5,000 a month today ($60,000 a year) inflated 4% over 20 years becomes about $131,000 a year. Over a 3-year stay that continues to inflate, the total comes to roughly $410,000.
Frequently asked questions
Does Medicare pay for long-term care?
Generally no. Medicare covers only short, skilled rehabilitation stays, not ongoing custodial care like help with daily living. Long-term care is paid out of pocket, through long-term care insurance, or by Medicaid once assets are largely spent down.
How long do people typically need care?
It varies enormously, but a common planning assumption is two to three years, with a meaningful minority needing five years or more. Modelling a longer duration is the conservative choice.
Should I buy long-term care insurance?
It depends on your assets and family situation — insurance transfers the risk but has rising premiums, while self-funding requires a large earmarked reserve. Use this projected total to judge how much exposure you would be covering.
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Educational estimate, not financial advice.