Assisted Living Cost Planning Calculator

Enter your monthly care costs, funding sources, and planning horizon to project total assisted living expenses, measure your funding coverage ratio, and see a year-by-year breakdown of costs versus income.

Created by Luis GonzalezLast updated: June 16, 2026

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 ($)

Additional Amenities ($)

200

Annual Inflation Rate (%)

4.5

Planning Horizon (yrs)

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

💡 To understand how inflation erodes purchasing power over your planning horizon, our Average Annual Return with Inflation Calculator factors in real returns.

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.

💡 Planning for family expenses at other life stages? Our Baby Cost Calculator offers similar forward-looking cost projections.

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.