Human Life Value Calculator

Work out human life value instantly with clear inputs, formula shown and shareable results.

About Human Life Value Calculator

Human life value is the present value of the income an earner would have contributed to their dependants over their remaining working life, after deducting what they would have spent on themselves. It is the actuarial basis for both life cover sizing and fatal-accident compensation.

Formulas

Annual contribution

Contribution = Annual income x (1 - Personal consumption %)

Human life value

HLV = Contribution x [1 - (1 + r)^-n] / r

Worked example

With the default values below, Human Life Value Calculator returns Human life value of $21,940,566.09. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current annual income: 1,800,000
Years to retirement: 25
Income consumed by yourself: 30
Discount rate net of income growth: 3

Results

Human life value: $21,940,566.09
Annual income contributed to the family: $1,260,000.00
Undiscounted lifetime contribution: $31,500,000.00
Value removed by discounting: $9,559,433.91

Step by step

1Values used
2Annual contribution
3Human life value
4Human life value= 21,940,566.09
5Annual income contributed to the family= 1,260,000.00
6Undiscounted lifetime contribution= 31,500,000.00
7Value removed by discounting= 9,559,433.91

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

What discount rate should I use?

Use a rate net of expected income growth. If income grows roughly with the discount rate, the real rate is close to zero and the undiscounted total is a reasonable proxy.

How much does the earner consume?

Courts commonly deduct one-third for a married earner with dependants, and up to one-half for a single earner.