Annuity Calculator
Estimate the guaranteed monthly pension you'd receive by buying an annuity with your retirement corpus.
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What is the Annuity Calculator?
An annuity is a financial product, usually sold by an insurance company, that converts a lump sum into a guaranteed regular income — often for the rest of your life. It's commonly the payout option chosen for the accumulated corpus in pension schemes like NPS, where a portion must be used to buy an annuity at retirement. Annuity income is taxable as regular income in the year you receive it.
How to Calculate
Enter the lump sum you're using to purchase the annuity and the annuity rate quoted by the insurer — this rate depends on your age, the annuity type (level, increasing, or with a spouse's pension attached) and prevailing interest rates, so it varies between providers and products. The calculator applies that rate to your purchase amount to estimate the resulting monthly and annual payout.
Formula
Monthly pension = Corpus × Annuity rate ÷ 12
How to Use
- Enter your details in the fields above.
- The result updates instantly as you type.
- Use Copy, Print or Download PDF to save your result.