Pension Calculator
Estimate the monthly pension you can draw from a retirement corpus using an annuity. Enter your corpus and annuity rate to see your monthly income.
Formula last reviewed 4 August 2026 · How we verify our calculators
Monthly pension
- Annual pension
- ₹3,00,000
- Annuity corpus
- ₹50,00,000
Updates live as you type
Frequently asked questions
An annuity is a financial product where you hand a lump sum to an insurer in exchange for a guaranteed regular income — typically monthly — for life or a fixed term.
This calculator estimates monthly pension as corpus × annuity rate ÷ 12. The actual payout depends on the annuity type, your age and the provider's rates.
Common options include annuity for life, life with return of purchase price, joint-life annuity for couples, and increasing annuities. Each offers a different trade-off between payout size and features.
Yes. Pension received from an annuity is treated as income and taxed at your applicable slab rate in the year of receipt.
A guaranteed income, priced in a single division
Hand over ₹50,00,000 for an annuity at a 6% rate and the payout is ₹25,000 a month, ₹3,00,000 a year — arrived at with nothing more than Monthly pension = Corpus × (Annuity rate ÷ 100) ÷ 12. There's no compounding once a corpus is annuitised, no market movement to track, just a fixed rate applied to a fixed sum: double the corpus to ₹1 crore at the same rate and the pension doubles too, exactly and predictably, to ₹50,000 a month. Real annuity providers price actual policies using their own actuarial tables — factoring in your age and life expectancy — so treat this figure as a close planning estimate rather than a binding quote from any specific insurer.
What you're giving up for that predictability
An annuity is the opposite bet from a market-linked withdrawal plan: the payout is fixed and guaranteed regardless of what happens to markets afterward, which is exactly what appeals to retirees who'd rather have certainty than a shot at higher but variable returns. The cost of that certainty shows up in the rate itself — annuity rates typically sit close to, or only modestly above, fixed deposit rates — and in a basic life annuity, the corpus itself is gone once you're gone; it isn't returned to your heirs, having been fully converted into the income stream you received while alive.
The variants that trade payout size for other features
Return-of-purchase-price annuities, joint-life annuities for couples, and increasing-payout annuities all exist precisely because a plain life annuity doesn't suit everyone — each one lowers the monthly payout somewhat in exchange for a feature: getting the original corpus back to your heirs, extending the guarantee to a spouse, or letting the payout rise over time. That variety is exactly why it's worth comparing several providers and structures as retirement approaches, rather than accepting the first quote presented. And whatever structure you choose, remember the income itself is taxable at your normal slab rate, same as any other income. A common middle path: annuitise only part of the corpus for a guaranteed income floor, and run an SWP on the remainder for potentially higher, if less certain, growth.