How much does long-term care cost?

In 2024–2025, national averages: private nursing home room ~$105,000/year ($290/day); semi-private room ~$95,000/year; assisted living ~$56,000/year ($155/day); home health aide ~$62,000/year (for 44 hours/week of in-home help). Costs vary 2–4× between low-cost rural areas and high-cost coastal metros.

Does Medicare cover long-term care?

No, not for most long-term care needs. Medicare covers short-term skilled nursing (up to 100 days after a 3-day hospital stay), and only with full coverage for the first 20 days. Custodial long-term care — the most common need — is not covered by Medicare. Medicaid covers long-term care but requires spending down most assets to qualify.

When should I buy long-term care insurance?

Most financial advisors recommend purchasing LTC insurance in your early to mid-50s. Before 50: premiums are low but you may pay for many years before needing benefits. After 60: premiums rise sharply, and health conditions may make you ineligible. The 50–60 window is generally the sweet spot.

Will Medicaid pay for nursing home care?

Yes, but only after the patient has spent down nearly all assets (typically to $2,000 for an individual). The Medicaid spend-down often includes selling investments and depleting retirement accounts. Some assets are protected (primary home, one car, personal possessions), and various legal strategies can preserve assets for the spouse and heirs, but they require advance planning.

What is hybrid life/LTC insurance?

Hybrid policies combine permanent life insurance with a long-term care benefit. You pay a single lump-sum premium ($50K–$200K typical) or annual premiums. If you need LTC, the death benefit converts to fund care. If you never need care, your beneficiaries receive the death benefit. Hybrids have replaced traditional standalone LTC policies as the most popular structure in recent years because they don't suffer from the "use it or lose it" problem and have more stable pricing.

Long-Term Care Cost Estimator

Project the cost of long-term care adjusted for inflation. Compare nursing home, assisted living, and home care costs to understand the financial gap and plan accordingly.

Last updated: May 26, 2026Reviewed by the CalcMountain editorial team

About this calculator

Long-term care is one of the largest and most under-planned costs in American retirement. The U.S. Department of Health and Human Services estimates that roughly 70% of people turning 65 today will need some form of long-term care during their lifetimes, with the average duration of need around 3 years. Costs are enormous and growing faster than general inflation. A private nursing home room currently averages roughly $290 per day nationally — over $105,000 per year — and the cost has grown about 4–5% annually for the past two decades.

The financial planning problem is that Medicare doesn't cover long-term care (beyond short post-hospital skilled nursing). Medicaid does, but only after the patient has spent down essentially all of their assets to the state's asset limit (typically $2,000 for an individual). For middle-class families with $300K–$2M in retirement assets, the most likely outcome of needing 3+ years of long-term care is the spending-down of most or all of those assets to qualify for Medicaid — leaving little for the surviving spouse or heirs.

This calculator projects the future cost of long-term care under your assumptions, comparing three common care types: nursing home (24-hour skilled care, highest cost), assisted living (residential community with help for daily activities, mid-cost), and home health aide (in-home help, varies widely). It also shows how much of the gap your current savings might cover. Use it to evaluate whether long-term care insurance, hybrid life/LTC policies, self-insurance through dedicated savings, or other strategies make sense for your situation.

Formula

Future cost projection: Future Daily Cost = Current Daily Cost × (1 + inflation)^(care start age − current age) Total cost over the care period: Total Cost = Future Daily Cost × 365 × Years of Care (Approximation — for precise modeling, daily cost should be incremented each year of care for ongoing inflation during the care years.) Funding gap: Gap = max(0, Total Cost − Existing Savings) Required monthly savings to fund the gap from today: Years to save = Care Start Age − Current Age Required Monthly = (Gap × monthly_compounding_rate) / [(1 + r)^n − 1] Or use the savings-goal calculator for the proper compound-growth math. Example: Age 45, expecting care at age 80 (35 years out). Nursing home cost projection. Current daily cost: $290 Years until care: 35 Healthcare inflation: 5% Future daily cost at age 80: $290 × 1.05^35 ≈ $1,602/day Annual cost at start of care: $1,602 × 365 ≈ $584,800 Total for 3 years (ignoring further inflation during care): ≈ $1,754,000 Current earmarked savings: $50,000 Gap: ~$1,704,000 The gap is enormous when projected 35 years out with healthcare inflation. Closing it from today requires either: (a) buying LTC insurance to transfer the risk, (b) saving aggressively in a dedicated investment account, or (c) accepting that Medicaid spend-down may be the outcome.

How to use this calculator

Enter your current age. The longer to the expected care start, the larger the inflation compounding effect.
Enter expected care start age. National average is around age 80, though many people never need formal long-term care and others need it earlier. Genetics, family medical history, and lifestyle all affect the realistic age.
Use the default daily cost figures or update with your local area's actual rates. Genworth and the U.S. HHS publish annual cost-of-care surveys. Costs vary 2–4x between low-cost (rural Midwest) and high-cost (NYC, Bay Area, Boston) areas.
Enter expected years of care. Average is about 3 years, but ranges widely. Some patients need only a few months; some need 10+ years for dementia or stroke-related care.
Set healthcare inflation rate. Long-term care costs have grown 4–5% annually historically — significantly above general CPI (2–3%). Use 4–5% for conservative planning, lower for optimistic.
Enter existing savings earmarked for long-term care (separate from emergency fund and retirement savings, ideally).
Review the projected total cost and funding gap. Consider how much of that gap is realistic to self-fund vs. cover through insurance or accept Medicaid spend-down.
For LTC insurance evaluation, run the calculator with different gap amounts (full, half, partial) — you don't need to insure 100% of the projected gap, just enough to bridge a typical care episode.

Worked examples

Mid-career planning — 30-year horizon

Age 50, expecting care at 80, 3 years of care, nursing home target. Current daily cost: $290. Healthcare inflation: 5%. Future daily at age 80: $290 × 1.05^30 ≈ $1,253/day Annual: ≈ $457,000 3-year total: ≈ $1,371,000 Existing earmarked savings: $50K. Gap: ~$1,321,000. To self-fund this gap, would need to save roughly $1,000/month at 6% return for 30 years. Or transfer to insurance — a 50-year-old can buy LTC insurance with a meaningful daily benefit for $1,500–$3,000/year, locking in coverage that grows with inflation.

Couple in their 60s — close to needing care

Couple age 65 each, may need care at age 85 (20 years), 4 years of care for one or both spouses. Current assisted living: $155/day. Healthcare inflation: 4.5%. Future daily at 85: $155 × 1.045^20 ≈ $374/day Annual: ≈ $137,000 4-year total: ≈ $548,000 (per spouse needing care) For one spouse: ~$550K cost. For both spouses (sequentially): ~$1.1M cost. At this age, LTC insurance is expensive ($3,000–$5,000/year for meaningful coverage) and underwriting is strict. Hybrid life/LTC policies are increasingly used — pay a one-time premium of $50K–$100K, get LTC benefits if needed, death benefit if not.

Aggressive in-home care planning

Age 55, want to age in place, plan for home health aide. 25-year horizon to age 80, 5 years of care. Current home care: $170/day (4 hours/day of professional help; 24-hour care is much more). Healthcare inflation: 4%. Future daily at 80: $170 × 1.04^25 ≈ $453/day Annual: ≈ $165,000 5-year total: ≈ $827,000 Home care, while seemingly more affordable than nursing homes, requires more hours to provide equivalent care for someone with severe cognitive or physical decline. Cost can exceed nursing home cost for high-need patients. Family caregivers can offset costs but at significant personal sacrifice.

When to use this calculator

Use this calculator when starting any serious retirement planning — typically in your 50s when the time horizon is still long enough that LTC insurance, hybrid policies, or dedicated savings can be effective. Earlier (40s) gives you the most flexibility; later (60s+) means LTC insurance becomes expensive and harder to qualify for, and dedicated savings have less time to grow.

It's especially important for: middle-class families with $250K–$3M in retirement assets (those most likely to lose everything to Medicaid spend-down), women (longer life expectancies and higher LTC needs on average), single people without family support, and anyone with family history of dementia, Alzheimer's, or Parkinson's.

Pair this with the life-insurance-needs and life-insurance-calculator (since many people now combine life and LTC into hybrid policies), the retirement-savings calculator (LTC costs reduce the savings available for normal retirement income), and the FIRE calculator (because LTC costs hugely affect the "is this enough?" math for early retirement).

Four common strategies for LTC funding: 1. **Self-insure** — accumulate enough savings to fund any reasonable care scenario. Works for high-net-worth families ($3M+ in retirement assets). Below that, the risk of catastrophic care eats the rest of the retirement. 2. **Long-term care insurance** — traditional standalone LTC policies. Pay annual premiums (can rise over time), get coverage if needed. Out of favor due to past insurer premium hikes and policy cancellations. 3. **Hybrid life/LTC** — a permanent life insurance policy with LTC rider. Pay a single premium of $50K–$200K. If you need care, the death benefit converts to LTC coverage. If you don't, heirs receive the death benefit. Currently the most popular structure. 4. **Medicaid spend-down planning** — accept that LTC costs will deplete most assets. Plan around protecting the home (which Medicaid usually excludes) and the spouse's assets via legal strategies. Often the default outcome.

The right strategy depends on assets, family situation, and risk tolerance. A consultation with an estate planning attorney is often valuable before committing to a strategy.

Common mistakes to avoid

Assuming Medicare will cover it. Medicare covers SHORT-TERM skilled nursing (up to 100 days after a hospital stay) but not custodial long-term care. The most common LTC need (dementia care, daily activities help) is not covered by Medicare at all.
Underestimating healthcare inflation. LTC costs have grown 4–5% annually for decades, well above general CPI. Using a 3% inflation rate (general CPI) materially understates future care costs.
Forgetting that one spouse may need care while the other is still in the home. The "well spouse" needs to maintain the household while the "ill spouse" needs paid care. Medicaid spend-down rules try to protect the well spouse from impoverishment, but the math is complex.
Waiting too long to buy LTC insurance. Premiums roughly double from age 50 to 60, and underwriting gets stricter. Past 65, many people are denied due to health conditions. The cheapest, most reliable time to lock in coverage is the early 50s.
Treating "I have life insurance" as LTC coverage. Standard life insurance pays on death, not on disability. Only specific hybrid policies or accelerated benefit riders convert death benefit into LTC coverage. Check your specific policy.
Ignoring family caregiver costs. Family members providing care lose income, career advancement, and personal well-being. These costs are real even when no professional care is paid. Plan-makers often dramatically underestimate the family burden of "we'll just take care of mom/dad ourselves."

Frequently Asked Questions

Sources & further reading

Long-Term Care Information — official planning guide — U.S. Administration for Community Living
Medicare and Long-Term Care — U.S. Centers for Medicare and Medicaid Services
Long-Term Care Costs and Considerations — U.S. Consumer Financial Protection Bureau

Related Calculators

Life Insurance Needs Calculator

Calculate how much life insurance coverage you need based on income, debts, and dependents.

Retirement Savings Calculator

Project your retirement savings growth and see if you are on track.

Fixed Annuity Payout Calculator

Calculate guaranteed payouts from a fixed annuity based on your investment and rate.

Variable Annuity Growth Projector

Project variable annuity growth including fees, expense ratios, and mortality charges.

Life Insurance Calculator (DIME Method)

Calculate detailed life insurance needs using the DIME method: Debt, Income, Mortgage, Education.

Disability Insurance Calculator

Calculate how much disability insurance coverage you need to protect your income.

Long-Term Care Cost Estimator

Project the cost of long-term care adjusted for inflation. Compare nursing home, assisted living, and home care costs to understand the financial gap and plan accordingly.

Inputs

Current Age

Expected Care Start Age

Daily Nursing Home Cost

National average ~$290/day

Daily Assisted Living Cost

Daily Home Care Cost

Expected Years of Care

Healthcare Inflation Rate

Savings Earmarked for Care

Results

Nursing Home Gap

$1,564,850

Assisted Living Gap

$707,995

Home Care Gap

$803,201

Years Until Care

Care Type Comparison

Care Type	Annual Cost at Care Age	Total Cost
Nursing Home	$583,870.23	$1,840,650.89
Assisted Living	$312,068.57	$983,796.17
Home Care	$342,268.75	$1,079,002.25