Free Tool
Infinite Banking Calculator
Model how cash value builds inside a properly structured whole life policy, then see what happens when you borrow against it for a major purchase instead of going to a bank. Your numbers never leave your browser.
Your policy design
Cash value vs. premiums paid
Cash value
$570,639
after 30 years
Premiums paid
$240,000
Break-even year
Year 10
cash value exceeds every dollar paid in
Model a policy loan
Cash value with the loan (net of loan balance)
Annual payment
$7,122
5-year amortized repayment
Interest to the carrier
$5,609
at 6% on a policy loan
Interest a bank would charge
$8,564
same loan at 9%
Cash value growth while repaying
$99,312
your full balance never stopped compounding
This is a simplified model. Your policy won't be.
Real numbers come from a carrier illustration designed around your age, health, and goals. We'll build one for you with a top dividend-paying mutual company, free.
How this model works
A properly structured whole life policy splits your premium between base coverage and paid-up additions (PUA). More PUA means more of each dollar lands in cash value from day one, which is why the PUA slider changes your early-year numbers so much. In this model, each premium dollar is credited at an efficiency that starts around 50 to 70 percent in year one and climbs to 98 percent by year nine, and the whole balance compounds at your chosen dividend rate. That is the characteristic shape of a real high-cash-value design: a small early drag, then decades of uninterrupted compounding. Read more in what makes a policy properly structured.
The loan section shows the core of the infinite banking concept: you borrow against your cash value, not from it. The carrier lends you its money with your policy as collateral, so your full balance keeps compounding while you repay on your own schedule. You pay loan interest either way in life; the question is whether it goes to a bank or works within your own system, at a lower rate, with no application, credit check, or repayment demands. For the honest trade-offs, see the pros and cons of infinite banking and our top 10 infinite banking FAQs.
One important caveat: this is an educational simplification. Real policies have guaranteed values plus non-guaranteed dividends, and the only numbers that matter are the ones in a carrier illustration built for your age, health, and funding level. Treat this tool as a way to understand the mechanics, not as a quote.
Like the mechanics? See your real numbers.
A Pro Client Guide will design a policy illustration around your situation with a top dividend-paying mutual company. No pitch, no pressure, and the illustration is free.