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If you have a parent or child who requires long-term care and you have begun to wonder about the cost, our long-term care calculator is just what you need. We did the hard work for you. Once you have typed in the required information, our long-term care calculator will use the present value to calculate the price you seek in a few seconds. For those who wish to learn more, we will also explain:

  • How do we define long-term care?
  • Who typically needs long-term care?
  • How to calculate the cost of long-term care.

πŸ™‹ Is our long-term care calculator not quite what you were looking for? Try our grocery calculator or this wonderful back to school calculator instead.

What is long term care?

Long-term care, sometimes called nursing home care, refers to services designed to cater to the needs of those who cannot fully care for themselves due to medical complications or age. It may be necessary for persons of any age. The need for long-term care can result from an accident, chronic illness, or disability.

Long term care typically includes services such as:

  • Home health care;
  • Nursing home care;
  • Transport;
  • Shopping;
  • Meal preparation;
  • Adult daycare; and
  • Assistive living facility.

How to use our long-term care cost calculator

To use our long-term care or nursing home cost calculator, you first need to know the daily or monthly cost. For instance, if the person is in-home care, you would find the total cost of all the items or services used on an average day. So in our calculator, you would then:

  1. Choose "Day" in the cost per field.
  2. Next, in the cost field, input the amount you came up with for the daily cost.
  3. In the expected period of care field, input the number of years you wish to calculate.
  4. Our long-term care inflation calculator will provide the cost in real time.

πŸ™‹ If you want to learn more about the current value of a stream of cash flows or future payments, you should try our present value calculator.

Would you like to know the formula used to calculate long term care?

To find the cost of long-term care over a given period, we need to factor in the daily or monthly price, the expected period of care, and the country's inflation rate. So, to ensure we are realistic in our calculation, our calculator is also a long-term care inflation calculator. The inflation rate is critical because prices change over time, and without it, the cost per year is likely to differ drastically, leaving you with some unexpected shortfall.

Additionally, the inflation rate varies from country to country, so it is essential to know the inflation rate of your specific country when using this tool.

To calculate the long-term cost, when you know the daily price and the number of years you expect to pay, you need first to calculate the cost for the first year. Before we look at the required formulas, here are the meanings of some variable names used in the formulas:

  • pc – Present cost: represents the current year's cost;
  • dc – Daily cost;
  • mc – Monthly cost;
  • n – Number of years;
  • r – Inflation rate: the average rate at which prices increase in a country; and
  • ic – Inflated cost: represents the cost at the expected inflated rate.

We use the following formula to calculate the first year's cost if we know the daily cost:

pc = dc Γ— 365

On the other hand, if you know the monthly cost, you use the following formula to find the cost of the first year:

pc = mc Γ— 12

With the result from this formula, we will calculate the cost of care for each successive year using the formula below:

ic = pc Γ— (1 + r)n

We repeat this process for each year; then, we add the yearly costs. In this way, we can calculate total long-term care at the expected inflation rate.

πŸ™‹ The inflation rate often changes from year to year, so we use historical data to predict the future value or buying power of your money. Using this historical data, we would calculate the average rate of inflation. Next, we would use this average to predict future inflation rates.

How our calculator uses the formula to calculate the cost of long-term care

Suppose that someone wishes to calculate the long-term care of a child in the United States for five years.

If we know that the daily cost of care is $50 and the average inflation rate for the United States is 3%, then we need to complete the following steps:

  1. First, calculate the cost of the nursing home care for the current year. Using the formula for the current year, we get:

    pc = 50 Γ— 365 = $18,250

  2. Next, calculate the cost for each year after that to find the estimated cost based on the pattern of inflation for that country.
    ic = 18,250 Γ— (1 + 3/100)1 = $18,797.50

    ic = 18,250 Γ— (1 + 3/100)2 = $19,361.43

    ic = 18,250 Γ— (1 + 3/100)3 = $19,942.27

    ic = 18,250 Γ— (1 + 3/100)4 = $20,540.54

  3. Add these yearly figures together, and the cost for the entire period is:

    18,250 + 18,797.50 + 19,361.43 + 19,942.27 + 20,540.54 = $96,891.73


How can I calculate the cost of long term care for three years?

To calculate the cost of long-term care for three years, you should:

  1. Get the current daily cost of the facility.
  2. Use the current daily cost to calculate the current yearly cost.
  3. Get the inflation rate of your country.
  4. Calculate the inflated cost for the next two successive years.
  5. Find the total cost for the three years by adding these yearly costs together.

What is a long term care facility?

A long-term care facility is any place that provides medical care and assistance for persons who cannot adequately care for themselves due to age, injury, or disability. Most long-term care facilities typically offer living facilities for the persons in their care.

Some examples of long-term care facilities are:

  • Assisted living residences;
  • Nursing homes; and
  • Medical center.

What is a long term acute care hospital?

Long-term acute care hospitals (LTAC) specialize in caring for patients who require extended specialized medical care. These patients are usually critically ill and need more supervised care than they are likely to receive in their homes or outpatient facilities.

Adena Benn
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Cost (dc, mc)
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No. of years (n)
Rate of inflation (r)
Total inflated cost after the specified period
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