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Future Long-Term Care Cost Calculator

Last updated 23rd Sep 2022

This future long-term care cost calculator can help you to estimate the funds you might need, and the annual savings necessary, to provide long-term care (LTC) to a loved one. The calculator uses the annual cost of long-term or nursing home care, years spent in a home, annual increase in LTC costs, funds saved, and rate of return on those savings, to determine if any funding gap exists.

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Current Age (Years)

This is the current age of the person receiving the long-term care, stated in years.

Anticipated Long-Term Care Age (Years)

This is the age of the person when they begin receiving long-term care.

Projected Years of LTC (Years)

This is the number of years you expect to provide long term care. According to a 1999 study by the National Center for Health Statistics, the average stay in a nursing home was 892 days, or approximately 2 to 3 years.

Annual Cost of Long-Term Care ($)

This is the average annual cost for a nursing home stay. According to a 2017 study by Gencare, the average annual rate for a private room was nearly $98,000, while the cost of a semiprivate room was nearly $86,000.

Projected Increase in LTC Costs (% / Year)

This is the projected annual increase in long-term care costs. According to the Centers for Medicare & Medicaid Services, the total increase in nursing home care expenditures over the next ten years is expected to be around 5.1% per year.

Long-Term Care Funds Saved ($)

If you have money, or an asset such as a home, which can be used to provide funding for long-term care or nursing home care, then enter that value here.

Rate of Return on LTC Funds (% / Year)

This is the average annual rate of return you expect to receive on the Long-Term Care Funds Saved.

LTC / Nursing Home Costs

This calculator provides an estimate of up to ten years of long-term care (LTC) or nursing home costs. The cost for each year is provided, and increased by the Projected Increase in LTC Costs.

Total Long-Term Funds Required ($)

This is the calculated total long-term care, or nursing home care, costs based on the information provided. The figure represents the net present value of the stream of LTC / Nursing Home Costs, discounted by the Rate of Return on LTC Funds.

Long-Term Care Funds from Savings ($)

This is the future value of the Long-Term Care Funds Saved, escalated by the Rate of Return on LTC Funds.

Long-Term Care Funding Gap ($ / Year)

This annual long-term care funding gap first calculates the difference between the Total Long-Term Funds Required and the Long-Term Care Funds from Savings. The calculator then converts this value into an annual stream of payments, which will close any remaining funding gap.

Future Long Term Care Cost Calculator

Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.

Moneyzine Editor

Moneyzine Editor