Care Affordability Calculator

Last updated July 2, 2026

Care affordability is the gap between what a senior's income and assets can sustain and what the care they need actually costs — and closing that gap requires a comprehensive picture of all resources. On the income side: Social Security, pension payments, required minimum distributions from retirement accounts, investment income, and any annuity payments. On the asset side: liquid savings, retirement account balances, home equity, life insurance cash value, and any other accessible resources. Against those resources, the monthly cost of the needed care level — in whatever setting is appropriate — determines how long the finances hold before assistance programs or family support become necessary.

The Medicaid spend-down calculation is often the pivotal planning question. Most states require that an individual applying for Medicaid nursing home benefits have countable assets below $2,000 to $3,000 (the exact amount varies by state), with some protected assets for a community-dwelling spouse. The spend-down from middle-class savings to Medicaid eligibility levels can happen faster than families expect: at $9,000 per month in nursing home costs and $3,000 per month in income, the monthly net cost is $6,000, depleting $100,000 in assets in roughly 17 months. Planning that begins several years before care is needed can preserve significantly more — through legitimate Medicaid planning strategies, irrevocable trusts, and spend-down on approved assets like home improvements.

The calculation shows your parent's or your own care affordability horizon: divide liquid assets by monthly net care cost (care cost minus available income) to estimate how many months the assets last before resources are depleted. That number tells you how urgently a broader funding strategy — including insurance, Medicaid planning, or family financial support — needs to be developed.