ULIP Return Calculator

Work out ulip return instantly with clear inputs, formula shown and shareable results.

About ULIP Return Calculator

A unit-linked plan's outcome is the gross fund return less all charges: premium allocation, policy administration, fund management and mortality deductions. Over a long term even a two percentage point charge drag compounds into a very large absolute difference, which is why the net return is the only figure worth comparing.

Formulas

Net return

Net return = Gross fund return - Total annual charges

Corpus

Corpus accumulates each year as (Previous corpus + Premium) x (1 + Net return)

Worked example

With the default values below, ULIP Return Calculator returns Projected maturity corpus of $3,458,201.50. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual premium: 120,000
Policy termmaximum 100 years: 15 years
Gross fund return: 10
Total annual charges (premium allocation, FMC, admin): 2.2

Results

Projected maturity corpus: $3,458,201.50
Total premiums paid: $1,800,000.00
Value lost to charges: $735,766.09
Net annualised return: 7.80%

Step by step

1Values used
2Net return
3Corpus
4Projected maturity corpus= 3,458,201.50
5Total premiums paid= 1,800,000.00
6Value lost to charges= 735,766.09
7Net annualised return= 7.80

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 or tax 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.
Illustrative projection using constant returns and charges. Actual outcomes depend on fund performance, charge structure, mortality deductions and taxation. Not investment or insurance advice.

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

Illustrative projection using constant returns and charges. Actual outcomes depend on fund performance, charge structure, mortality deductions and taxation. Not investment or insurance advice.

Frequently Asked Questions

Which charges matter most?

Premium allocation charges in the early years and the fund management charge over the whole term. Mortality charges are deducted separately from units.

Is a ULIP better than term plus mutual fund?

Usually not on cost. Term insurance plus a low-cost index fund typically delivers more cover and more corpus for the same outlay, though tax treatment can shift the comparison.