A ULIP calculator that shows returns after every charge
This ULIP calculator projects the fund value of a unit-linked insurance plan year by year after the four main charges — premium allocation, policy administration, mortality (the cost of the life cover) and fund management — and works out the net yield (IRR) and the reduction in yield those charges cause.
It always shows the two gross returns IRDAI requires in every ULIP benefit illustration, 4% and 8%, next to your own assumption. Copy the charges from your policy’s benefit illustration for an accurate answer. It runs free in your browser; ULIP returns are market-linked and not guaranteed, and this is not investment advice.
How to use the ULIP Calculator
- Enter the yearly premium, the policy term, the premium paying term and the sum assured.
- Copy the charges from your benefit illustration: allocation charge by year, monthly administration charge, mortality rate per ₹1,000 and the fund management charge.
- Enter the gross return you want to test; 4% and 8% are calculated as well.
- Read the fund value at maturity, the net yield and the reduction in yield, the chart and the charge breakdown.
ULIP Calculator features
Monthly simulation
Charges are deducted each month the way ULIP funds cancel units, with fund growth in between.
Mortality on the sum at risk
Cover is charged on (sum assured − fund value), so it falls as the fund grows.
IRDAI 4% and 8%
The two illustration rates, plus your own, in one table.
Net yield and RIY
The IRR of your premiums against the maturity value, and how much the charges cost a year.
Charge breakdown
Total allocation, administration, mortality, fund management and GST over the term.
How the ULIP fund value is calculated
Each policy year the premium, less the premium allocation charge, buys units. Every month the fund pays the policy administration charge and the mortality charge = (sum assured − fund) × rate per ₹1,000 ÷ 1,000 ÷ 12, then grows at the gross return, and the fund management charge (yearly % ÷ 12) comes off the fund value.
Net yield is the IRR of the premiums against the fund at maturity; reduction in yield = gross return − net yield. With no charges the net yield equals the gross return exactly — a check the tool runs in its self-test. Insurers’ illustrations may calculate the reduction in yield on a slightly different basis, so compare the fund values as well.
| Charge | What it pays for | How it is taken |
|---|---|---|
| Premium allocation | Selling and set-up costs | % of each premium, usually higher in early years |
| Policy administration | Running the policy | Fixed ₹ a month (may rise each year) |
| Mortality | The life cover | Rate per ₹1,000 of sum at risk, by age |
| Fund management | Managing the investments | % a year of the fund value |
Reading a ULIP benefit illustration
- IRDAI requires insurers to give a benefit illustration at gross returns of 4% and 8%; these are not forecasts or guarantees.
- ULIPs have a five-year lock-in; surrender in that period moves the fund to a discontinued-policy fund.
- Since 22 September 2025, individual life insurance policies including ULIPs are exempt from GST, so enter 0% GST unless your charges were levied before then.
- Loyalty additions, wealth boosters and return of mortality charges in some plans add to the fund; they are not modelled — add them separately.
- To compare with investing on your own, try the SIP calculator or mutual fund calculator plus a term plan sized with the life insurance calculator. For traditional with-profit plans use the policy maturity calculator.
ULIP Calculator FAQ
How do I calculate ULIP returns?
Simulate the fund month by month after every charge, then find the IRR of the premiums against the final fund value. This ULIP calculator does both and shows the result at 4%, 8% and your own rate.
What is reduction in yield in a ULIP?
The difference between the gross return the fund earns and the net yield you receive after charges. A smaller reduction in yield means a cheaper policy.
Where do I find my ULIP charges?
In the benefit illustration and the policy document (often a schedule of charges). Enter those exact figures here.
Why does the mortality charge fall over time?
It is charged on the sum at risk — the sum assured minus the fund. As the fund grows the insurer’s risk falls, unless the rate rises with age faster.
Is this ULIP calculator online free?
Yes, with no sign-up and no phone number. Everything is calculated in your browser.
Are ULIP returns guaranteed?
No. The fund value depends on market performance; the 4% and 8% figures are illustrations only.