Return on a Savings Plan
Iteratively determines the annual return of a regular savings plan (optionally with starting capital) that leads to a known final value – ideal for comparing insurance policies.
Enter your own numbers and press "Calculate" – or load an example on the right; "Type in" replays it on the device.
The bare maturity sum says little – only the recomputed return makes a policy comparable with other investments. It is not the promise that counts, but the number.
→ Story & full explanation: What return does the life insurance really deliver?
Before canceling, first work out the minimum return: only if the alternative clearly beats this threshold is switching worthwhile – otherwise you give up security for no reason.
With a savings plan the rate cannot be solved directly because it appears in several places of the formula. The calculator tries it iteratively until the deposits and target value match exactly (internal rate of return). This is how, for example, the true return of an insurance policy becomes visible.
Internal rate of a savings plan; iterative solution, output as the effective rate.