Key Person Insurance Calculator
Last updated: July 2026
Compare income-multiple and replacement-cost approaches for key person coverage.
Suggested planning coverage
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- Income-multiple approach: —
- Replacement and lost-profit approach: —
- Selected base before buffer: —
On this page
Quick summary: Compare income-multiple and replacement-cost approaches for key person coverage. Enter realistic assumptions and compare more than one scenario before making a financial or insurance decision.
Read the complete guide
What this calculator estimates
Compare income-multiple and replacement-cost approaches for key person coverage. It is designed for fast planning and comparison in the United States. The output is an estimate, not a binding quote, tax determination, insurance offer, valuation or professional recommendation.
How to use it
Enter values from your payroll records, insurance quote, budget or financial statements. Keep time periods and rates consistent. Select Calculate, review the headline result and supporting figures, then change one assumption at a time to test another scenario.
How the calculation works
The calculator compares compensation times an income multiple with replacement cost plus expected lost profit, then applies a buffer to the larger amount.
Important limitations
Coverage should reflect actual business dependency, ownership arrangements, insurability, policy terms and tax or legal advice.
Frequently asked questions
Is the result exact?
No. It is a planning estimate based on the values entered.
Can I compare different scenarios?
Yes. Change one input at a time so you can see which assumption changes the result.
Does the calculator store my inputs?
The calculation runs in the browser and does not require an account. Avoid entering unnecessary confidential information.