How much does disability insurance pay?

Short-term disability (STD) typically pays 60% of your weekly salary, often capped at $1,000–$2,000/week. Long-term disability (LTD) usually pays 60% of monthly gross income. SSDI pays based on your earnings record — the average benefit is about $1,489/month (2024), and the maximum is $3,822/month.

What is the difference between employer and individual disability insurance?

Employer-provided (group) policies often have limited benefits, shorter periods, and taxable benefits since the employer pays premiums. Individual policies are portable, often provide 'own occupation' coverage, and benefits are tax-free if you paid premiums with after-tax dollars — but they require medical underwriting and cost more.

What is SSDI and how does it differ from LTD?

SSDI (Social Security Disability Insurance) is a federal program for workers who paid Social Security taxes and become totally disabled. LTD is private insurance that pays a percentage of your salary. SSDI requires a 5-month wait, has a strict 'any occupation' standard, and takes months to years to be approved. LTD is faster, generally more flexible, and pays on top of (or is offset against) SSDI.

How long does disability insurance last?

STD typically lasts 3–6 months. LTD benefit periods range from 2 years and 5 years to age 65 or 67 (the gold standard). SSDI continues as long as you remain disabled under SSA rules, converting to Social Security retirement benefits at full retirement age. The average long-term disability claim lasts 31 months.

Are disability benefits taxable?

It depends on who pays the premiums. If your employer pays the premiums, benefits are taxable. If you pay with after-tax dollars, benefits are tax-free. SSDI may be partially taxable (up to 85%) if your combined income exceeds $25,000 (single) or $32,000 (married). This calculator shows both scenarios so you can plan accordingly.

Disability Benefits Calculator — STD, LTD & SSDI Estimate

Feature	STD	LTD	SSDI
Typical Benefit	60% salary	60% salary	~40% (capped)
Waiting Period	1–14 days	90–180 days	5 months (required)
Benefit Duration	3–6 months	2–5 yrs / to 65	Until retirement
Taxable?	If employer pays	If employer pays	Up to 85% taxable
Approval Speed	Days–weeks	Weeks–months	3–24+ months
Portability	Group: tied to employer	Individual: portable	Federal program

1

Enter your monthly income and disability type

Input your gross monthly income and select whether you're estimating Short-Term Disability (STD), Long-Term Disability (LTD), or Social Security Disability Insurance (SSDI) benefits.

2

Set your benefit percentage and elimination period

Enter the percentage of income your policy covers (typically 60%). Set the elimination (waiting) period in months before benefits begin — SSDI has a mandatory 5-month wait.

3

Review your benefit amounts and income replacement rate

The calculator shows your estimated monthly benefit, after-tax amount, total benefits over the policy period, and how much of your income the benefit replaces.

Monthly Benefit (STD/LTD)

Monthly Benefit = Monthly Income × Benefit Percentage

Example: $5,000/mo income × 60% = $3,000/mo benefit. Most employer LTD policies cover 60% of pre-disability gross income up to a monthly cap.

After-Tax Monthly Benefit

After-Tax Benefit = Monthly Benefit × (1 − Tax Rate)

Applies when employer pays premiums — employer-paid benefits are taxable ordinary income. Premiums paid by the employee with after-tax dollars produce tax-free benefits.

Editorial accountability

Author: Quinn Sumner - Editor

Owner: Quinn Sumner - Editorial owner

Last reviewed: 2026-05-16

Last verified: 2026-05-16

Methodology

Disability Benefits Calculator estimates weekly STD and LTD benefit amounts and SSDI income from salary, benefit percentages, and state selection inputs.

Assumption: Benefit percentages and caps are based on published plan terms; actual benefits depend on your specific policy.

Assumption: State SSDI offset rules and waiting periods vary; default values reflect typical plans.

Limitations & guidance

This calculator does not replace a review of your actual insurance policy or a benefits analysis by a licensed insurance professional.

SSDI approval rates and benefit amounts are determined by SSA adjudication, not this calculator.

Professional guidance: Disability Benefits Calculator is for educational planning only and is not insurance, legal, or financial advice. Consult a licensed insurance professional or benefits specialist for advice specific to your situation.

Primary sources

Disability Insurance Statistics - Council for Disability Awareness

Short-Term and Long-Term Disability Insurance - U.S. Department of Labor

Short-Term Disability (STD)

Long-Term Disability (LTD)

SSDI (Social Security Disability Insurance)

Elimination Period

Benefit Period

Income Replacement Rate

Own-Occupation Definition

PIA (Primary Insurance Amount)

Result

Monthly LTD benefit: $3,600. After-tax benefit (22% bracket, employer-paid): $2,808. Coverage gap: $2,400/month. Over 25 years (to age 65), total benefits: $1,080,000. Income replacement rate: 60% — at the recommended minimum threshold.

Result

Estimated SSDI benefit: $2,200/month (40% of income, within the $3,822 cap). Income replacement rate: 40% — below the 60% threshold, leaving a $3,300/month coverage gap. SSDI approval typically takes 3–6 months, with 35% of initial applications approved.

Disability insurance is one of the most overlooked components of financial planning. A worker in their 30s has a 25% chance of becoming disabled before retirement age, yet most workers rely solely on limited employer group coverage that replaces only 60% of pre-disability income with strict any-occupation definitions after two years.

Short-Term vs. Long-Term Disability: Coverage Structure

Short-term disability (STD) covers the first 3-6 months of disability with a 7-14 day waiting period. Most employer STD replaces 60-80% of salary. Long-term disability (LTD) begins after STD ends — typically after a 90-day elimination period — and can pay for 2 years, 5 years, or to age 65. The key distinction is the definition of disability: most employer LTD policies use own-occupation for the first 24 months (cannot perform your specific job), then switches to any-occupation (cannot perform any job). Individual policies can maintain own-occupation for the policy lifetime, which is critical for high-skill professionals.

SSDI: Federal Disability Benefits and Eligibility

Social Security Disability Insurance (SSDI) pays monthly benefits to workers who have paid Social Security taxes and become disabled. SSDI has a mandatory 5-month waiting period before benefits begin, and the average approval process takes 3-6 months — with initial approval rates around 35% and appeals taking 12-24 months. The average SSDI benefit is $1,537/month (2024) — approximately 40% of pre-disability income. SSDI is typically offset against private LTD policies, so having both provides redundancy during the SSDI approval gap, not additive income.

How Much Disability Coverage Do You Actually Need?

The standard recommendation is 60-70% income replacement — enough to cover essential fixed expenses (housing, food, utilities, insurance) while allowing some adjustment. Start with your monthly expenses budget, subtract SSDI and partner income, then buy private coverage to bridge the gap. Self-employed individuals with no employer group coverage are especially exposed: their only automatic safety net is SSDI, which averages only 40% of income. Individual disability policies cost 1-3% of the annual benefit in premiums — a policy paying $3,000/month costs $36-$108/month. The most cost-effective design uses a 90-day elimination period (matched to your emergency fund) and a benefit period to age 65.

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Disability Benefits Calculator

STD vs LTD vs SSDI

After-Tax Benefit by Tax Rate

Total Benefits by Period

Important Considerations for Disability Planning

How to Use This Calculator

Enter your monthly income and disability type

Set your benefit percentage and elimination period

Review your benefit amounts and income replacement rate

Formula & Methodology

Trust, Methodology & Sources

Key Terms Explained

Real-World Examples

Disability Benefits: STD, LTD, and SSDI Explained

Short-Term vs. Long-Term Disability: Coverage Structure

SSDI: Federal Disability Benefits and Eligibility

How Much Disability Coverage Do You Actually Need?

Frequently Asked Questions

Disability Benefits Calculator

STD vs LTD vs SSDI

After-Tax Benefit by Tax Rate

Total Benefits by Period

Important Considerations for Disability Planning

How to Use This Calculator

Enter your monthly income and disability type

Set your benefit percentage and elimination period

Review your benefit amounts and income replacement rate

Formula & Methodology

Trust, Methodology & Sources

Key Terms Explained

Real-World Examples

Disability Benefits: STD, LTD, and SSDI Explained

Short-Term vs. Long-Term Disability: Coverage Structure

SSDI: Federal Disability Benefits and Eligibility

How Much Disability Coverage Do You Actually Need?

Frequently Asked Questions

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