Insurance Affordability Calculator — Calculate Your Insurance Budget

Insurance Affordability Calculator

Calculate how much insurance you can afford based on your income, expenses, and financial goals. Determine optimal coverage levels for different insurance types and your budget.

Step 1: Financial Information

Understanding Insurance Affordability

Financial advisors typically recommend spending 5-10% of your net income on insurance premiums. This ensures adequate coverage without straining your budget.

Step 2: Insurance Needs & Goals

5/10
Medium

About Insurance Budgeting

Higher risk tolerance may allow for lower coverage levels, while lower risk tolerance suggests more comprehensive coverage. Consider your dependents and financial obligations when choosing coverage.

Insurance Affordability Results

Summary
Insurance Comparison
Budget Breakdown

Recommended Monthly Insurance Budget

£225
For £3,000 monthly income with medium risk tolerance
Disposable Income
£850
% of Income for Insurance
7.5%
Additional Affordable Premium
£75
Priority Coverage
Auto

Insurance Type Cost Comparison

Insurance Type Average Monthly Cost Recommended Coverage Priority Level

Monthly Budget Breakdown

Affordability Calculation Formula

Max Insurance Budget = (Net Income – Essential Expenses) × Risk Factor

This formula ensures insurance costs don’t compromise essential living expenses. The risk factor adjusts based on your personal risk tolerance and coverage needs.

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