How to Use This Calculator
- 1
Enter Care Details & Costs
Select care level and intensity, then input monthly costs (rent, meals, care services, medical, transportation, utilities, housekeeping, activities, amenities). Set inflation rate, planning horizon, and location cost factor.
- 2
Enter Funding Sources & Review
Input current savings, monthly income, LTC insurance benefit, government benefits, and family contribution. See Funding Coverage, Monthly Care Cost, and Total Cost Over Period cards. The Insights panel shows coverage ratio, savings runway, projected future cost, cost breakdown, and funding sources.
Example Calculation
A family plans for a parent's assisted living over 10 years with $6,025/mo base costs, 1.2x location factor, $100,000 savings, and $5,917/mo in combined funding.
Monthly Rent ($)
3,500
Monthly Meals ($)
800
Personal Care Services ($)
600
Medical Services ($)
400
Transportation ($)
200
Utilities ($)
150
Housekeeping ($)
100
Activities & Programs ($)
75
Additional Amenities ($)
200
Annual Inflation Rate (%)
4.5
Planning Horizon (yrs)
10
Location Cost Factor
1.2
Current Savings ($)
100,000
Monthly Income ($)
3,000
LTC Insurance Benefit (Annual) ($)
5,000
Government Benefits ($)
1,500
Family Contribution ($)
1,000
Care Level
Assisted Living
Care Intensity
Moderate
Results
Funding Coverage
Moderate Shortfall
Monthly Care Cost
$7,230
Total Cost Over Period
$1,066,125
Insights card shows 81.
Tips
$1,313/Mo Gap Depletes $100K Savings in 6.3 Years
With $7,230/mo in costs and $5,917/mo in funding, the $1,313/mo shortfall burns through $100,000 in savings by year 6.3 — leaving 3.7 years unfunded. Closing even $500/mo of this gap extends runway to 9.5 years.
4.5% Inflation Pushes Monthly Cost from $7,230 to $11,228 by Year 10
Senior care costs historically rise 4-5% annually — faster than general inflation. Over 10 years, this 55.3% increase adds $3,998/mo. A 1% lower inflation assumption (3.5%) saves $78,000 in total projected costs.
Memory Care Would Cost $10,122/Mo — 40% Above Assisted Living
If care needs escalate to memory care (1.4x multiplier), monthly costs jump from $7,230 to $10,122. The 10-year total rises from $1.07M to $1.49M. Plan for potential care level transitions by maintaining a cushion.
Rent Is 58% of Base Costs — Negotiate or Explore Alternatives
$3,500 rent is 58% of the $6,025 base monthly cost. Facilities in lower-cost areas (1.0x vs 1.2x location factor) would reduce adjusted costs from $7,230 to $6,025/mo — saving $14,460/year and eliminating most of the funding gap.
Planning for Assisted Living Costs Over Time
The Assisted Living Cost Planning Calculator projects long-term care expenses across multiple funding sources.
For assisted living at $7,230/month (1.2x location, moderate intensity) over 10 years with 4.5% inflation, the total cost is $1,066,125.
With $5,917/mo in combined funding (income, LTC insurance, government benefits, family), there's a $1,313/mo gap — a "Moderate Shortfall" that depletes $100,000 in savings by year 6.3.
The Cost Projection Formulas
Costs are built from base expenses, adjusted by multipliers, then inflated forward:
Base Monthly = Rent + Meals + Care + Medical + Transport + Utilities + Housekeeping + Activities + Amenities
Adjusted Monthly = Base x Location Factor x Care Level Factor x Intensity Factor
Year N Cost = Adjusted Monthly x (1 + Inflation)^(N-1)
Monthly Funding = Income + (LTC Insurance / 12) + Gov Benefits + Family
Monthly Gap = Adjusted Monthly Cost - Monthly Funding
Savings Runway = Current Savings / Monthly Gap
Example: 10-Year Assisted Living Projection
$6,025 base monthly costs, 1.2x location, assisted living, moderate intensity:
| Metric | Value |
|---|---|
| Base Monthly Costs | $6,025 |
| Adjusted Monthly (1.2x location) | $7,230 |
| Year 1 Annual Cost | $86,760 |
| Year 5 Monthly Cost | $8,622 |
| Year 10 Monthly Cost | $10,744 |
| 10-Year Total Cost | $1,066,125 |
| Monthly Funding | $5,917 |
| 10-Year Total Funding | $872,463 |
| Coverage Ratio | 81.8% |
| Monthly Gap | $1,313 |
| Cumulative Gap | $193,662 |
| Savings Runway | 6.3 years |
The $1,313/mo gap grows with inflation — by Year 10, monthly costs reach $10,744 while funding (also inflated) reaches $8,793, widening the gap to $1,952/mo.
Strategies to Close the Funding Gap
The $193,662 cumulative gap over 10 years can be addressed several ways: increasing family contribution by $400/mo eliminates 30% of the gap, switching to a 1.0x location area saves $14,460/year, or choosing low intensity (0.85x) drops monthly costs to $6,146 — below the $5,917 funding level, eliminating the gap entirely.
Run multiple scenarios to find the most practical combination.
Frequently Asked Questions
What is the average monthly cost of assisted living?
Nationally, $4,500-$5,000/month in 2026. Memory care averages $6,000-$8,000. Costs vary dramatically by location — urban metros can be 20-40% above average while rural areas may be 15-20% below. This calculator's location cost factor adjusts for these differences.
How does the funding coverage ratio work?
It's total projected funding divided by total projected costs over the planning period. At 81.8%, income and benefits cover about 82 cents of every dollar in care costs. The remaining 18.2% ($193,662 over 10 years) must come from savings. A ratio above 100% means no savings draw needed.
What is the savings runway?
How long your savings last when covering the monthly funding gap. With a $1,313/mo gap and $100,000 saved, runway is 76 months (6.3 years). This is a simplified estimate — it doesn't account for inflation increasing the gap over time, so actual runway may be shorter.
Can Medicare cover assisted living costs?
Medicare generally does not cover long-term custodial care including assisted living. It may cover short-term skilled nursing after hospitalization. Medicaid can cover assisted living for eligible low-income individuals, but rules vary by state with strict asset limits and look-back periods (typically 5 years).
How do care level and intensity multipliers work?
Care level adjusts base costs: Independent Living 0.8x, Assisted Living 1.0x, Memory Care 1.4x. Intensity further adjusts: Low 0.85x, Moderate 1.0x, High 1.3x. These multiply together — Memory Care + High Intensity = 1.4 x 1.3 = 1.82x base cost.
What if care needs change during the planning period?
Run multiple scenarios. Start with assisted/moderate, then rerun with memory/high to see the cost impact. Many families face a progression: 3-5 years of assisted living followed by memory care. Blending projections (e.g., 5 years assisted + 5 years memory) gives a more realistic total.