Transparent method
The formula
Worked example
Example inputs
How to interpret the result
The funding gap during parental leave depends on several benefit sources stacking together, employer-paid leave, short-term disability, and state programs where they exist, and the actual combined replacement rate from all of them together is rarely the same as any single source's stated percentage taken in isolation.
Before you rely on it
What to check
Add employer leave benefits, disability benefits and any state program together explicitly, rather than estimating the gap from a single benefit source's stated percentage alone.
The common error
Where people go wrong with maternity leave calculator
Estimating the leave funding gap using only one benefit source, like employer-paid leave, while ignoring disability or state benefits that may also apply. The combined replacement from all applicable sources together is what actually determines the real gap.
Sensitivity evidence
How weekly gross pay changes the estimated leave funding gap
| Weekly gross pay | Estimated leave funding gap | Estimated lost take-home pay | Total paid-leave benefits |
|---|---|---|---|
| $1,120 | $4,003 | $10,483 | $10,080 |
| $1,260 | $5,314 | $11,794 | $10,080 |
| $1,400worked example | $6,624 | $13,104 | $10,080 |
| $1,540 | $7,934 | $14,414 | $10,080 |
| $1,680 | $9,245 | $15,725 | $10,080 |
Every input, tested
Which input moves the estimated leave funding gap most
| Input | Tested from | To | Estimated leave funding gap at each end | Swing |
|---|---|---|---|---|
| Weekly gross pay | $1,260 | $1,540 | $5,314 to $7,934 | $2,621 (40%) |
| Weekly paid-leave benefit | $756 | $924 | $7,632 to $5,616 | $2,016 (30%) |
| Added leave-period costs | $4,050 | $4,950 | $6,174 to $7,074 | $900 (14%) |
| Effective tax rate | 20.0% | 24.0% | $6,960 to $6,288 | $672 (10%) |
| Leave weeks | 11 | 13 | $6,372 to $6,876 | $504 (7.6%) |
| Work costs avoided | $810 | $990 | $6,714 to $6,534 | $180 (2.7%) |
Two variables at once
Estimated leave funding gap by weekly gross pay and effective tax rate
| Weekly gross pay \ Effective tax rate | 18.0% | 22.0% | 26.0% |
|---|---|---|---|
| $1,120 | $4,541 | $4,003 | $3,466 |
| $1,260 | $5,918 | $5,314 | $4,709 |
| $1,400 | $7,296 | $6,624 | $5,952 |
| $1,540 | $8,674 | $7,934 | $7,195 |
| $1,680 | $10,051 | $9,245 | $8,438 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Weekly gross pay | $1,400 |
| Effective tax rate | 22.0% |
| Leave weeks | 12 |
| Weekly paid-leave benefit | $840 |
| Added leave-period costs | $4,500 |
| Work costs avoided | $900 |
| Estimated leave funding gap | $6,624 |
| Estimated lost take-home pay | $13,104 |
| Total paid-leave benefits | $10,080 |
Where the inputs come from
Weekly gross pay and the effective tax rate give your take-home pay during normal work. Leave weeks is how long you plan to be off, and the weekly paid-leave benefit comes from state paid family leave, short-term disability, or your employer, which often pay a portion of your wages. Added leave-period costs include medical bills, childcare and baby supplies, and work costs avoided are things such as commuting that stop while you are away. Confirm your benefits with HR and your state program.
Using the estimated leave funding gap in a real decision
A partner's leave can be planned to spread the gap and keep one paycheck at full pay.
When the result stops applying
Benefits and eligibility differ widely, and the amount paid during recovery from childbirth may differ from paid bonding leave. Unpaid time beyond your benefits makes the gap larger. Medical costs depend on insurance and the out-of-pocket maximum for the year. Return to work may involve childcare costs starting right away.
What to compare it with
See the general version on the paid leave gap calculator, and childcare costs on the childcare break-even salary and stay-at-home versus childcare pages. The health insurance plan comparison helps estimate medical bills, and the sinking fund calculator helps save for the gap. Enroll the baby in insurance within the allowed window.
People also ask
Frequently asked questions
How long is maternity leave in the United States?
The FMLA provides up to 12 weeks of unpaid job-protected leave for eligible employees, and pay depends on state programs, employer policies and disability insurance.
What does short-term disability cover?
Often a share of your pay for the recovery period after childbirth, commonly about six to eight weeks, depending on the policy and delivery.
How much should I save before leave?
Estimate the gap between your usual take-home pay and your leave benefits plus added costs, and aim to save that amount plus a buffer.