Enter the total premiums paid ($) and the total dividends received ($) into the Calculator. The calculator will evaluate the Net Cost Of Insurance. 

Net Cost Of Insurance Formula



  • NCOI is the Net Cost Of Insurance ($)
  • TP is the total premiums paid ($)
  • DR is the total dividends received ($)

To calculate the Net Cost Of Insurance, subtract the total dividends received from the total premiums paid.

How to Calculate Net Cost Of Insurance?

The following steps outline how to calculate the Net Cost Of Insurance.

  1. First, determine the total premiums paid ($). 
  2. Next, determine the total dividends received ($). 
  3. Next, gather the formula from above = NCOI = TP – DR.
  4. Finally, calculate the Net Cost Of Insurance.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

total premiums paid ($) = 50000

total dividends received ($) = 10000