Net Single Premium Calculator
The net single premium for whole life insurance is the actuarial present value of the death benefit, paid as one lump sum at issue with no expense loading. Using commutation functions it is simply the benefit amount times Ax, where Ax = Mx / Dx. This calculator takes the commutation columns Mx and Dx for the issue age (which you can build with our commutation function tool or read from a valuation table) and the face amount, then returns Ax and the net single premium. Because the proper mortality table depends on the insured population, Mx and Dx are user-editable inputs.
Net single premium formula
Ax = Mx / Dx
Net single premium = benefit * Ax
NSP per 1,000 = 1,000 * Ax
Ax is the present value of 1 payable at the end of the year of death for a life aged x. Multiplying by the face amount scales it to the policy benefit.
Net single premium context
- NSP is a net figure: no expense, commission, or profit loading is included.
- Mx is the sum of Cx from the issue age upward; Dx discounts the lives at the issue age.
- Use a consistent mortality table and interest rate when building Mx and Dx.
- Ax rises with issue age and falls as the interest rate rises.
- For benefit payable at the moment of death, multiply by approximately (1 + i)^0.5 under uniform deaths.
Net single premium: frequently asked questions
What is a net single premium?
A net single premium (NSP) is the actuarial present value of an insurance benefit paid as one lump sum at issue, with no loading for expenses or profit. For whole life it equals the benefit amount times Ax, the present value of 1 payable at death. It is the price that makes expected discounted benefits equal expected discounted premiums when the premium is paid once.
How is whole life Ax computed?
Using commutation functions, Ax = Mx / Dx, where Mx is the sum of Cx from age x onward and Dx = v^x times lx. Multiplying Ax by the face amount gives the net single premium for a benefit payable at the end of the year of death.
Where do Mx and Dx come from?
They are commutation columns built from a mortality table and an interest rate. You can compute them with our commutation function calculator or take them from a Society of Actuaries valuation table. Because the right table depends on the population being insured, Mx and Dx are user-editable inputs here.
Does this include expenses?
No. A net premium covers only the expected cost of the benefit. A gross or office premium adds loadings for expenses, commissions, taxes, and profit margin. This calculator returns the net figure, which is the actuarial floor before loadings.
What if I want a term or endowment NSP?
The same Mx and Dx columns support those products. Term insurance uses (Mx - M at the end age) / Dx; endowment adds a pure endowment term. This page focuses on whole life Ax = Mx / Dx; see our endowment premium calculator for endowment products.
Official sources
- Society of Actuaries: SOA valuation tables and study notes.
- U.S. Social Security Administration: SSA Office of the Chief Actuary life tables.
Reviewed by the CalculatorHub team, edited by James Graham, 17 June 2026. See our methodology.