Income Floor Calculator

Enter your essential monthly expenses and guaranteed income to see your floor coverage %, monthly gap, and how much SPIA premium closes it.

Currently optimized for U.S. retirement planning. Support for additional countries is planned.

Essential monthly expenses

Housing, food, healthcare, utilities — expenses you must cover regardless of markets. Or enter a total directly in the last field.

If entered, this overrides the line items above.

Total essential expenses: $3,550/month

Guaranteed monthly income

Income you receive regardless of market performance.

Rental, existing annuity, or other fixed income.

Total guaranteed income: $2,200/month

SPIA estimator (for gap-closing calculation)

Used to estimate how much SPIA premium would close your floor gap.

Disclaimer: SPIA payout rates are approximate mid-2025 market estimates for a life-only annuity. Actual quotes vary by insurer, state, and interest rate environment. This calculator is for educational planning purposes only. See the Income Floor methodology for the coverage and SPIA-premium formulas and what the snapshot leaves out.

What is an income floor?

An income floor is the guaranteed income that covers your essential monthly expenses — housing, food, healthcare, utilities. The floor strategy says: every dollar of essential expense should be covered by guaranteed income (Social Security, pension, or annuity) so that your investment portfolio only needs to fund discretionary spending. This eliminates sequence-of-returns risk for your critical expenses.

Why 100% floor coverage is the target

When essential expenses are fully covered by guaranteed income, a market crash becomes a paper loss rather than a lifestyle threat. You don't have to sell equities at the worst time to pay your rent. Your portfolio is freed to take more risk, pursue more growth, and potentially leave a larger legacy.

Guaranteed Income Strategy Guide →Annuity Income CalculatorAnnuity GuideIncome Gap Calculator