Human Life Value

One of your most important assets is your ability to earn a paycheck. This calculator is designed to help you understand today's value of your future earning. Use this calculator to determine your economic value for your loved ones... your Human Life Value.

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For more information about these financial calculators please visit: Financial Calculators from KJE Computer Solutions, Inc.

By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.

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Human Life Value Inputs :

Years until retirement:*This entry is required.Enter an amount between 0 and 50

Current annual income:*This entry is required.Enter an amount between $0 and $5,000,000

Return on investments:*This entry is required.Enter an amount between 0% and 20%

Expected annual inflation rate:*This entry is required.Enter an amount between 0% and 20%

Expected income growth:*This entry is required.Enter an amount between 0% and 20%

**FIG_GRAPHTITLE** Column Graph: Please use the calculator's report to see detailed calculation results in tabular form.

Value calculated as KJE1

Definitions

Years until retirement

Number of years before retirement.

Current annual income

Your current annual income. If you are married, this should not include any income from your spouse.

Return on investments

This is the annual rate of return you expect from your investments after taxes. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31^st 2024, had an annual compounded rate of return of 14.9%, including reinvestment of dividends. From January 1, 1970 to December 31^st 2024, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 11.2% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution pay less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.

Insurance products may additionally include mortality, expense risk charges, cost of insurance, administrative, and surrender charges that will have a significant impact on the total rate of return for the investment.

Expected annual inflation rate

This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2024 the CPI has a long-term average of 3.0% annually. Over the last 40 years the highest CPI recorded was 13.5% in 1980. For the 12 months ending October 31^st 2024 the CPI for All Urban Consumers (CPI-U) was 3.2% as reported by the U.S. Bureau of Labor Statistics.

Expected income growth

Annual percent increase you expect in your annual income.

Human life value

This is the total amount you would need invested today, to equal the total earnings of a person's lifetime. Two values are calculated for you. The first includes only your expected income growth, the second includes your expected income growth plus the impact of inflation.

Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.