DIME Life Insurance Calculator
Debt, Income, Mortgage and Education, plus final expenses
Last updated: October 2026
Your Obligations
Funeral, burial and final medical bills
Offsets (optional)
Leave at 0 to replace your full income
Your estimate in today's dollars
DIME Breakdown
| Component | Detail | Amount |
|---|---|---|
| D: Debt | Non-mortgage debt payoff | $40,000 |
| I: Income | $80,000 a year for 15 years | $1,200,000 |
| M: Mortgage | Mortgage payoff | $350,000 |
| E: Education | $100,000 for each of 2 children | $200,000 |
| Final expenses | Funeral and final medical bills | $15,000 |
| Total need | $1,805,000 | |
The income leg is usually the biggest
On an $80,000 salary replaced for 15 years, the income leg alone is $1,200,000. If your spouse will keep working, enter their income as an offset to see how much that changes.
How the DIME Method Works
Formula: need = debt + (income x years) + mortgage + (children x college cost) + final expenses, less any spouse income offset. Additional coverage to buy = need less existing cover, savings and survivor benefits, never below zero.
Worked example (the defaults): $40,000 + $80,000 x 15 + $350,000 + 2 x $100,000 + $15,000 = $1,805,000. With $250,000 of existing cover, you would look for about $1,555,000 more.
Debt: credit cards, auto, student and personal loans, so your family starts without them.
Mortgage: the current balance, so your family can stay in the home without the payment.
Education: what you expect college to cost for each child. Money already in a 529 plan can go in the savings offset.
Frequently Asked Questions
What does DIME stand for in life insurance?
DIME stands for Debt, Income, Mortgage and Education. You add your non-mortgage debt, your annual income times the years your family needs it, your mortgage balance and the college cost for each child. This calculator also adds a line for final expenses such as the funeral and last medical bills.
How many years of income should I replace?
A common choice is until your youngest child is financially independent, often around age 22. Some families replace income until the surviving spouse reaches retirement age instead. Most people land somewhere between 10 and 20 years.
Does DIME assume my spouse stops working?
The income leg replaces your full income for the years you choose. If your spouse will keep earning, you can enter their income as an optional offset. It is shown as its own line and can never take the income leg below zero. The main life insurance calculator on this site uses the same rule, so both pages agree.
What counts against the coverage I need to buy?
Life insurance you already own, savings your family could use, and Social Security survivor benefits. Survivor benefits can be paid to a widow or widower caring for a child under 16 and to unmarried children under 18. Your Social Security statement shows estimates.
How does DIME compare to the 10x income rule?
DIME builds the number from your actual obligations. 10x income simply multiplies your salary. A family with a large mortgage and young children will usually see DIME come out well above 10x, while a single person with no debt will usually see it come out lower.