What Makes This ULIP Calculator Different

Most online ULIP calculators give you one maturity number based on gross returns before charges. This calculator goes significantly further.

1. Net maturity value after all charges You see what you actually receive at the end of your policy term, not an inflated pre-charge figure. Allocation charges, fund management charges (1.35 per cent per year as per the IRDAI cap) and mortality charges are all applied before showing you the final number.

2. Year-by-year fund growth table Every single year of your policy term is shown in a breakdown table with premium paid, charges deducted, and fund value at end of that year. You can track exactly how your corpus grows over time.

3. CAGR (annualised yield) after charges The calculator shows your actual CAGR after all charge deductions. This is the only number that lets you fairly compare your ULIP against FD rates, PPF or SIP returns on a like-for-like basis.

4. Death benefit projection year by year Your nominee’s death benefit changes each year as your fund value grows. This calculator shows the death benefit for every year of the policy term, not just the sum assured at entry.

5. Fund allocation modelling Split your premium across equity, debt and balanced funds to see how your risk profile changes the projected maturity value. Compare aggressive, moderate and conservative scenarios in seconds.

6. Monthly SIP mode If you prefer paying ULIP premiums monthly (common in new-age digital ULIPs), the calculator handles monthly compounding correctly. Enter your monthly amount and get accurate monthly-frequency projections.

7. Quick example presets Four ready-made scenarios are built in: Standard (1 lakh per year at 8 per cent for 15 years), Aggressive (2 lakh per year at 10 per cent for 20 years), Conservative (50k per year at 6 per cent for 10 years) and Monthly SIP (5k per month at 8 per cent for 15 years).

8. CSV download and shareable plan link Download your full projection as a CSV file for offline analysis or share a personalised link with your family or financial advisor.

9. Completely free, no login, no data collection No registration. No email required. No data is stored. Your financial information stays on your device.

What Is a ULIP?

A ULIP, or Unit Linked Insurance Plan, is a financial product that does two things simultaneously. It provides life insurance cover to protect your family, and it invests part of your premium in market-linked funds to grow your wealth over time.

When you pay a ULIP premium, your money is split like this: A portion covers your life insurance (this is the mortality charge). A portion goes to the insurer for administrative and allocation costs. The remaining amount, called the net premium, is invested in funds you choose such as equity, debt or balanced.

The fund grows based on market performance. NAV (Net Asset Value) is calculated daily for each fund. At the end of your policy term, you receive the current fund value as your maturity benefit.

If you pass away during the policy term, your nominee receives the higher of the sum assured or the current fund value.

ULIPs have a mandatory 5-year lock-in period. Most financial planners in India recommend staying invested for at least 10 to 15 years for compound growth to meaningfully outweigh the charge drag from the early years.

ULIP Returns: What Can You Realistically Expect?

This is the most common question from investors, and most websites answer it poorly by quoting only the best-case scenario. Here is an honest breakdown based on historical performance of Indian ULIP funds.

ULIP returns in 5 years

Short-term ULIP returns over 5 years are heavily impacted by the initial allocation charges and early-year mortality charges. Even with a reasonable fund return, your net CAGR after charges over 5 years may be meaningfully lower than a comparable mutual fund SIP. The 5-year lock-in exists precisely because ULIPs need time for charges to become a smaller proportion of the total corpus.

Typical range after charges: 6 to 10 per cent per annum for equity-oriented funds under average market conditions.

ULIP returns in 10 years

At 10 years, the charge drag becomes a smaller share of your total corpus and compounding starts to have real impact. The typical range of ULIP returns over 10 years is 8 to 12 per cent per annum, with equity-focused funds performing toward the higher end during bull market phases.

Realistic expectation after all charges: 8 to 12 per cent CAGR for equity-oriented ULIPs.

ULIP returns in 15 years

The 15-year horizon is widely regarded as the sweet spot for ULIPs in India. Charges have been absorbed over a long base, compounding has had full effect and the life cover has provided protection throughout. Historical long-term ULIP equity fund data suggests a 10 to 13 per cent CAGR range for well-managed equity funds over this period.

Realistic expectation after all charges: 10 to 13 per cent CAGR for equity-oriented ULIPs.

ULIP returns in 20 years

At 20 years, compounding becomes very visible. A modest 10 per cent post-charge CAGR on a 1 lakh per year premium creates a corpus approaching 63 lakh. Equity-focused long-term ULIPs have historically performed strongly over 20-year periods, though market cycles during this window will influence actual outcomes.

Realistic expectation after all charges: 10 to 14 per cent CAGR for equity-focused funds.

ULIP returns in 25 years

A 25-year ULIP investment is one of the most powerful long-term wealth-building tools for Indian investors, combining decades of compounding with tax-free maturity proceeds under Section 10(10D) of the Income Tax Act. Historical Nifty 50 data, the benchmark for most ULIP equity funds, averaged 13.2 per cent annual returns over the last 10 years. Over 25 years, assuming average market conditions, a realistic net-of-charges expectation is 10 to 12 per cent CAGR.

Realistic expectation after all charges: 10 to 12 per cent CAGR over a 25-year horizon.

ULIP returns in 35 years

Very few ULIP calculators in India show 35-year projections. The PlanMyReturns ULIP calculator supports custom terms up to 35 years. At this horizon, even a conservative 8 per cent net CAGR on a 1 lakh annual premium generates a corpus exceeding 1.7 crore. The compounding effect at 35 years is dramatic: the majority of your total corpus is generated in the final 5 to 7 years of the policy.

If you are in your 20s and buying a ULIP today, a 35-year horizon means you could retire with a substantial tax-free corpus. Enter your details above to see your personal 35-year projection.

ULIP Returns in the Last 5, 10 and 15 Years: Historical Data

Understanding what ULIPs have actually delivered in the past helps set realistic expectations for future planning.

Historical ULIP fund performance for equity category (approximate figures):

Past performance is not a guarantee of future returns. These ranges reflect top equity ULIP funds from established insurers. Debt-oriented ULIP funds have historically returned 6 to 8 per cent over the same periods.

The PlanMyReturns ULIP calculator lets you test multiple scenarios. Enter 6 per cent for a pessimistic view, 10 per cent for a conservative, realistic view, and 14 per cent for an optimistic scenario, then compare all three projections side by side.

How to Use the PlanMyReturns ULIP Calculator: Step by Step

Step 1: Enter your premium amount

Type the amount you pay per policy period. This can be your annual premium (for example 1,00,000 rupees per year) or your monthly premium (for example 8,333 rupees per month). Toggle between yearly and monthly using the buttons above the input field.

Step 2: Select premium frequency

Choose Yearly or Monthly. If you pay an annual premium to your insurer, select Yearly. If you prefer SIP-style monthly payments common in digital ULIPs, select Monthly. The calculator applies correct compounding logic for each mode.

Step 3: Set your policy term

Select from 10, 15, 20 or 25 years, or use the custom input for any other duration including 5, 30 or 35 years. The longer your term, the more pronounced compounding becomes relative to charge drag.

Step 4: Enter your expected return rate

This is your assumed annual growth rate for your chosen fund. Reference points to use: Conservative: 6 to 7 per cent (debt-oriented funds). Moderate: 8 to 10 per cent (balanced funds). Aggressive: 11 to 14 per cent (equity-oriented funds in strong markets).

Step 5: Adjust fund allocation (optional)

Open the Advanced section to split your investment across equity, debt and balanced funds. The total must equal 100 per cent. This lets you model different risk profiles and compare how aggressive versus conservative allocation affects your projected maturity value.

Step 6: Click Calculate

Your results appear instantly showing total premium paid, total charges deducted, final maturity value (net of charges), net profit in rupees, CAGR as a percentage, death benefit and year-by-year fund growth table.

ULIP Charges Explained: Why Net Returns Matter More Than Gross Returns

The biggest knowledge gap for ULIP buyers in India is not understanding how charges affect long-term returns. Here is a clear breakdown of every charge the PlanMyReturns calculator applies.

Premium allocation charge

Deducted upfront before your premium reaches the investment fund. Typically 5 per cent in years 1 to 3, reducing in later years. On a 1,00,000 rupee premium, only 95,000 rupees is actually invested in year 1.

Fund management charge (FMC)

Charged as a percentage of your fund value every year. IRDAI caps FMC at 1.35 per cent per annum. The PlanMyReturns calculator uses 1.35 per cent as the standard assumption. Applied daily as a reduction in NAV.

Why FMC matters: On a fund value of 10 lakh, FMC at 1.35 per cent equals 13,500 rupees per year. At 50 lakh fund value, it is 67,500 rupees per year. Over a 15 to 20 year horizon, total FMC deducted can be several lakhs.

Mortality charge

The cost of your life insurance cover. It varies by age, sum assured, gender and health status. Mortality charges increase every year as you age. A 30-year-old investor pays significantly less in mortality charges than a 45-year-old for the same sum assured.

Key insight: For younger investors (25 to 35 years), mortality charges are low and the investment component is high. For older investors, mortality charges become more significant and reduce the investable surplus. This is one reason ULIPs are generally more effective for younger investors with long horizons.

Impact on returns: A numerical example

Investor profile: 30-year-old, 1,00,000 rupees annual premium, 15-year term, 8 per cent expected return, 60 per cent equity and 40 per cent debt.

This gap is why this calculator shows you the net figure. Use it above to run your own specific scenario.

How to Calculate ULIP Returns: Three Methods

Method 1: Using the PlanMyReturns ULIP calculator (recommended)

Enter your premium, term and expected return rate. The calculator applies all charges and shows net maturity value, CAGR and year-wise table automatically. Fastest and most reliable for planning.

Method 2: CAGR formula for existing policyholders

If you already hold a ULIP and want to calculate your actual return to date:

CAGR = [(Current Fund Value divided by Total Premium Paid) raised to the power of (1 divided by Number of Years)] minus 1

Multiply the result by 100 to get the percentage.

Example: Fund value today is 8 lakh, total premium paid over 5 years is 5 lakh. CAGR = (8 divided by 5) to the power 0.2, minus 1 = approximately 9.86 per cent.

Method 3: NAV-based absolute return (single-year only)

Absolute Return = [(Current NAV minus Initial NAV) divided by Initial NAV] multiplied by 100

This is only suitable for single-year comparisons. For all multi-year analyses, always use CAGR.

ULIP Mortality Charges: Calculation Explained

Mortality charges are one of the most misunderstood ULIP components. They represent the pure cost of your life insurance cover and are deducted monthly by cancelling units from your fund.

How mortality charges are calculated: Mortality charge per month = (Sum at Risk x Mortality Rate from IRDAI table) divided by 12

Sum at Risk = Sum Assured minus Current Fund Value

What this means in practice: In the early years, when fund value is low, the Sum at Risk is high and mortality charges are significant. As your fund grows, the Sum at Risk reduces and mortality charges reduce with it. This is why the charge drag reduces as your ULIP matures.

The PlanMyReturns calculator applies standard mortality charge assumptions based on a typical 30 to 40-year-old investor profile. If you are significantly older or have a much higher sum assured, your actual mortality charges may differ from the calculator’s estimates.

ULIP vs SIP: An Honest Comparison

The honest verdict: If you need life cover AND market-linked investment AND plan to hold for 15 or more years AND are in the 30 per cent tax bracket, a ULIP can be appropriate. If you only want wealth creation, a term plan plus direct mutual fund SIP typically generates higher net returns due to significantly lower charges.

Use both tools to compare your specific numbers:

• ULIP: use the calculator on this page
• SIP equivalent: use the PlanMyReturns SIP Calculator

ULIP vs Traditional Endowment Plans

ULIP Tax Benefits in India for FY 2025-26

Section 80C: Deduction on premium paid

Premium paid toward a ULIP qualifies for deduction under Section 80C of the Income Tax Act, up to a maximum of 1,50,000 rupees per year. This applies only under the old tax regime. If you have chosen the new tax regime, Section 80C deductions are not available.

Section 10(10D): Tax-free maturity

Maturity proceeds from a ULIP are tax-free under Section 10(10D), subject to these conditions:

For policies issued after April 1, 2012: sum assured must be at least 10 times the annual premium for tax-free maturity.

For policies issued after February 1, 2021: if your total annual ULIP premium across all policies exceeds 2,50,000 rupees, gains at maturity are taxed as LTCG at 12.5 per cent on gains above 1.25 lakh (same as equity mutual fund taxation following the 2024 Budget revision).

If your annual premium is below 2,50,000 rupees and the sum assured condition is met, maturity remains fully tax-free.

Death benefit: Always tax-free

The death benefit received by the nominee is fully exempt from income tax under Section 10(10D), regardless of the premium amount paid.

Use the Income Tax Calculator at PlanMyReturns to see how ULIP premium deductions affect your total tax liability.

ULIP Fund Value: How It Grows Over Time

Your ULIP fund value is the current market worth of all the units you hold across your chosen funds. It changes every day based on NAV movement.

How fund value is calculated: Fund Value = Number of Units Held x Current NAV per Unit

How units are allocated when you pay a premium: Each premium payment (minus charges) is divided by the current NAV of your chosen fund to determine how many units you receive.

Example: Annual premium 1,00,000 rupees. After 5 per cent allocation charge, 95,000 rupees is invested. Current equity fund NAV is 25 rupees per unit. Units allocated: 95,000 divided by 25 = 3,800 units.

Over 15 years, with consistent premium payments and fund growth, you accumulate a large number of units. Your total fund value at any point is all units held multiplied by the current NAV.

The year-by-year fund value table in the PlanMyReturns calculator shows exactly how your unit holdings and fund value grow each year, giving you a complete picture of your investment across the entire policy term.

ULIP SIP Mode: Monthly Premium ULIP Explained

Many newer ULIP products in India allow monthly premium payment, functioning similarly to a SIP. This is sometimes called ULIP SIP in common usage, though technically it is a ULIP with monthly premium frequency.

Advantages of monthly ULIP premium mode: Smaller individual payments are easier to budget monthly. Rupee cost averaging applies (more units purchased when NAV is low, fewer when NAV is high). Mimics the investment discipline of a mutual fund SIP.

How the PlanMyReturns calculator handles monthly mode: Select Monthly under premium frequency. The calculator applies monthly compounding and deducts charges monthly as all insurers do. Monthly mode compounding is calculated correctly, distinct from the yearly mode.

Is monthly ULIP premium better than yearly? For the same total annual premium, monthly mode typically yields a slightly lower maturity value than yearly mode in a steadily rising market because capital is deployed gradually rather than at the start of the year. In volatile markets, monthly mode reduces the risk of deploying a large annual premium at an unfavorable NAV. The calculator lets you compare both modes directly.

Testing Financial Goals Using the ULIP Calculator

The ULIP calculator is designed to answer the question: does a ULIP fit my specific financial goal?

For child education planning: Enter your target year (when your child turns 18 or 21). Set the policy term as the number of years from today to that date. Use a realistic return rate of 8 to 10 per cent and see whether your planned premium generates the required corpus.

For retirement planning: Enter your target retirement age. Set the policy term accordingly. Compare the ULIP maturity value with our Retirement Calculator to see how a ULIP fits into your overall retirement plan.

For wealth creation to a specific corpus target: Work backwards. If you want 50 lakh at end of 15 years, adjust the premium input upward until the maturity value in the calculator reaches your target.

For marriage planning: Set the term to the number of years until your child’s expected marriage. Use a conservative 7 to 8 per cent return rate to stress-test the plan against a pessimistic market scenario.

ULIP Calculator for LIC, Max Life and Other Insurers

The PlanMyReturns ULIP calculator is a general-purpose tool not linked to any single insurer. It can estimate returns for any ULIP plan by entering the specific premium and using the insurer’s fund historical return as the expected return rate input.

For LIC ULIP plans: LIC ULIP products like LIC New Endowment Plus and LIC Nivesh Plus typically offer a more conservative fund mix than private insurers. For LIC ULIP estimation, use 7 to 9 per cent as your expected return rate, reflecting LIC’s moderate historical equity fund performance.

For Max Life (Axis Max Life) ULIP plans: Axis Max Life equity ULIP funds have shown strong historical performance. Check your specific fund’s 5-year CAGR in the fund fact sheet and use that as your expected return input.

For all insurer-specific estimates: Look up your insurer’s fund fact sheet for the 5-year and 10-year CAGR of your specific fund. Enter that figure as the expected return rate. The maturity value output gives a realistic estimate of what your plan may deliver.

ULIP Average Return Rate Reference Table

The expected return rate field causes the most confusion for first-time users. Use this table as your reference:

Recommendation: Run the calculator three times using a low, medium and high return rate to see the range of possible outcomes. Never plan financial goals based only on the optimistic scenario.

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Frequently Asked Questions