Estimate your economic life value as the present value of future income.
Calculated locally in your browser.
How is Human Life Value (HLV) calculated?
Net contribution = income − own expenses, and HLV = NC × [1 − (1 + r)⁻ⁿ] ÷ r, the present value of an annuity (when r = 0, HLV = NC × n). For example, (50,000 − 15,000) for 25 years at 5% gives roughly 493,000. A higher discount rate lowers the present value.
Understanding your result
A higher discount rate lowers the present value. HLV is one lens on cover needs; the needs-analysis method is another.
Formula and method
Net contribution = income − own expenses. HLV = NC × [1 − (1 + r)⁻ⁿ] ÷ r (present value of an annuity); when r = 0, HLV = NC × n.
Assumptions and limitations
Human Life Value is one economic model, not financial or professional advice. The result swings with the discount rate, years and expense assumptions you choose, and it ignores non-financial contributions and changing circumstances. Use it for orientation alongside other methods, and confirm any cover decision with a qualified professional.
Worked example
(50,000 − 15,000) for 25 years at 5% discounting gives an HLV of roughly 493,000.
How to use this tool
- Enter your annual income and your own expenses.
- Add the years to retirement and a discount rate.
- Press Calculate.
Common mistakes to avoid
- Using gross income without subtracting personal expenses.
About the Human Life Value Calculator
Human Life Value (HLV) estimates the economic value of your future earnings to your dependants — the present value of the income you would contribute until retirement.
Who should use this tool
People comparing methods for estimating life cover who want the economic-value view rather than a needs breakdown. Suited to anyone curious about the present value of their future earnings to dependants, or wanting a second figure to set alongside a needs analysis before talking to an adviser.
Benefits
- Values future earnings as a present-day annuity figure
- Shows how the discount rate reshapes the result
- Offers an economic counterpart to needs-based estimates
- Calculates privately in your browser, no sign-up
Practical use cases
- Estimating the economic value of your working years
- Comparing HLV against a needs-analysis figure
- Testing how discount rate assumptions move the total
- Framing a discussion with a financial adviser
Frequently asked questions
HLV or needs analysis?
They answer the question differently; many advisers consider both. Use the Life Insurance Calculator for the needs approach.
Why does a higher discount rate lower my Human Life Value?
The calculation converts many years of future income into a single present-day amount. A higher discount rate assumes money in the future is worth less today, so distant earnings shrink more heavily. The result is a smaller present value, which is why the rate you choose has a large effect on the figure.
What are own expenses in this calculation?
Own expenses are the portion of income you spend on yourself, which would no longer be needed by dependants. The tool subtracts them from income to find your net contribution, then values that stream over the years to retirement. Changing this figure directly changes the resulting Human Life Value.