Group LTD gap calculator
See how much of your take-home pay your employer plan would actually replace, and what is left to cover. Nothing is stored. No email required.
Your numbers
Enter an amount from 0 to 100,000,000.
Enter an amount from 0 to 100,000,000.
What your plan would pay
- Gross monthly income
- $38,333
- Group benefit before cap
- $20,000
- Group benefit after cap
- $12,000
- Group benefit after tax
- $7,560
- Monthly shortfall vs take-home
- $16,590
Your plan would replace about 31% of take-home pay. An individual policy of roughly $12,917 per month would close most of the gap and stay with you if you change employers.
What these results mean
Group plans quote a percentage of salary, but three things shrink it: the monthly cap, the exclusion of bonus and production income, and taxes when the employer pays the premium. Your shortfall is the difference between what you take home today and what the plan would deposit.
An individual policy is designed to close most of this shortfall. Carriers generally issue enough coverage to bring total benefits to about 60% to 70% of gross income, counting the group plan. The individual benefit is tax-free when you pay the premium yourself.
A shortfall of zero is rare above $150,000 of income. If you see one, check that the cap is entered correctly.
Methodology
- Gross monthly income = (base + bonus) / 12.
- Group benefit = base / 12 × replacement percentage, limited to the monthly cap. Bonus excluded, as in most plans.
- If the employer pays the premium, the benefit is taxed at your marginal rate. If you pay with after-tax dollars, it is not.
- Take-home = gross monthly income × (1 minus marginal rate). Simplified; ignores deductions and state variation.
- Shortfall = take-home minus after-tax group benefit.
Assumptions reviewed against the plan summaries in our lookup database, July 2026. Full methodology. This tool is educational and is not a quote.