Pension Calculator
Estimate the retirement corpus a monthly contribution can build and the monthly pension it can pay as an annuity.
How it works
Corpus = future value of the monthly contribution grown at the saving-phase return · Monthly pension = corpus × annuity rate ÷ 12
A pension plan works in two phases. While you are earning, a monthly contribution is invested and compounds at an assumed return, building a lump-sum corpus by retirement. After you retire, that corpus is used to buy an annuity that pays a regular income, so the monthly pension is simply the corpus multiplied by the annuity rate and divided across twelve months. A higher saving-phase return grows the corpus faster, while the annuity rate decides how much income that corpus can then throw off.
Worked example
Investing ₹5,000 a month for 30 years at 10% grows to a corpus of about ₹1.14 crore. Bought as an annuity paying 6%, that corpus yields roughly ₹57,000 a month — built from just ₹18 lakh of actual contributions over the 30 years.
Frequently asked questions
Is the pension amount guaranteed?
No. Both the saving-phase return and the annuity rate are assumptions here. Market-linked plans can do better or worse than the figure you enter, and annuity rates on offer change over time, so treat the result as a planning estimate rather than a promise.
Why is the monthly pension so much smaller than the corpus?
The corpus is a one-time lump sum, while the pension is only the yearly income it earns, spread over twelve months. At a 6% annuity a crore pays about ₹50,000 a month while the principal stays intact to keep paying.
How can I raise my monthly pension?
Contribute more, start earlier so compounding runs longer, or accept a higher-return (and higher-risk) mix while saving. Even a small increase early in the saving phase has a large effect on the final corpus.
Related calculators
Educational estimate only, not investment advice. Interest rates on PPF, EPF, NPS, Sukanya Samriddhi and other small-savings schemes are revised periodically by the Government of India — confirm the current rate before relying on this.