Endowment Policy Return (IRR) Calculator
The true annualised return (IRR) of a traditional endowment/savings policy — premiums in, maturity out.
Formula
Insurance agents quote endowment and money-back policies in terms of 'total returns' or a big maturity figure, which hides how poor the annualised return really is. The internal rate of return (IRR) is the only fair measure: it is the single compound rate that equates all premiums you pay with the maturity you receive, properly accounting for timing. Most Indian traditional plans land around 4–6% IRR — below inflation-beating equity and often below a simple PPF. Compute the IRR before you buy or surrender: if it is well under what a term plan plus an index fund would give, the policy is costing you growth. Note the maturity is usually tax-free under §10(10D) if conditions are met, which slightly improves the post-tax comparison.
Educational. Maturity values shown by insurers may be projected, not guaranteed. Not financial advice. Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need endowment policy return calculator results fast? Analysts, founders, traders and finance professionals use the Endowment Policy Return Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Endowment Policy Return (IRR) Calculator
The true annualised return (IRR) of a traditional endowment/savings policy — premiums in, maturity out. Insurance agents quote endowment and money-back policies in terms of 'total returns' or a big maturity figure, which hides how poor the annualised return really is. The internal rate of return (IRR) is the only fair measure: it is the single compound rate that equates all premiums you pay with the maturity you receive, properly accounting for timing. Most Indian traditional plans land around 4–6% IRR — below inflation-beating equity and often below a simple PPF. Compute the IRR before you buy or surrender: if it is well under what a term plan plus an index fund would give, the policy is costing you growth. Note the maturity is usually tax-free under §10(10D) if conditions are met, which slightly improves the post-tax comparison. The governing relationship is IRR solves Σ CFₜ /(1+IRR)ᵗ = 0 over the premium and maturity cash flows. The Endowment Policy Return Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Endowment Policy Return (IRR) Calculator
- 1Enter Annual premium (₹), Premium paying term (yrs), Policy term (yrs), Maturity value received (₹) into the Endowment Policy Return Calculator.
- 2The result is computed automatically using IRR solves Σ CFₜ /(1+IRR)ᵗ = 0 over the premium and maturity cash flows — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Endowment Policy Return (IRR) Calculator?
- ✓Computes endowment policy return calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Endowment Policy Return Calculator?+
Endowment Policy Return Calculator uses IRR solves Σ CFₜ /(1+IRR)ᵗ = 0 over the premium and maturity cash flows. Insurance agents quote endowment and money-back policies in terms of 'total returns' or a big maturity figure, which hides how poor the annualised return really is. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Endowment Policy Return Calculator need?+
Enter Annual premium (₹), Premium paying term (yrs), Policy term (yrs), Maturity value received (₹) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Endowment Policy Return Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. Educational. Maturity values shown by insurers may be projected, not guaranteed. Not financial advice. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Endowment Policy Return Calculator?+
The internal rate of return (IRR) is the only fair measure: it is the single compound rate that equates all premiums you pay with the maturity you receive, properly accounting for timing. Most Indian traditional plans land around 4–6% IRR — below inflation-beating equity and often below a simple PPF. Compute the IRR before you buy or surrender: if it is well under what a term plan plus an index fund would give, the policy is costing you growth. Note the maturity is usually tax-free under §10(10D) if conditions are met, which slightly improves the post-tax comparison.
What is the Endowment Policy Return Calculator based on?+
The method follows authoritative sources: Internal rate of return (IRR) — discounted cash-flow analysis. The formula and references are shown on the page so you can verify and cite the result.
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