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Savings & Retirement Schemes

Pension Calculator

Find the monthly income your retirement corpus can pay for a set number of years, rising each year with inflation.

By Nitin Raturi · Last reviewed

Your worksheet

How to use the Pension Calculator

Turn a corpus into a monthly income that lasts a set number of years.

  1. Enter the corpus you will have when income starts.
  2. Enter how many years the income should last.
  3. Set the return on the balance and the yearly increase.
  4. Read the first monthly income and open the yearly table to see the balance fall to zero.

Good to know

  • Tap the ⓘ next to any field for a short guide to it.

Income is taken at the start of each month, raised once a year, and uses up the corpus over the years you choose.

Retirement corpus

The total amount you will live on, invested, on the day income starts.

How to fill it in

  • Type 1 crore, 10000000 or 1,00,00,000. Allowed range: ₹10,000 to ₹1,000 crore.

Example

₹1 crore over 25 years gives ₹42,715.47 a month at first.

Years of income

How many years the corpus should last before it reaches zero.

How to fill it in

  • Enter 1 to 50 whole years.
  • More years means a smaller monthly amount.

Keep in mind: Nobody knows their lifespan. Choosing too few years risks running out.

Return on the balance

The yearly growth you assume on the money not yet paid out.

How to fill it in

  • Enter 0% to 15% a year, as an effective annual rate.

Keep in mind: Returns are not guaranteed. Many people assume a lower rate in retirement.

Yearly increase in income

How much the monthly income rises each year, usually to keep up with inflation.

How to fill it in

  • Enter 0% to 10%. Use 0% for a flat income.

Example

With no increase the default corpus pays ₹68,922.47 every month instead.

Estimated monthly income in the first year

₹42,715.47

₹1 crore can pay about ₹42,715.47 a month at first, rising 5% each year to ₹1,37,761.66 in year 25, when the money runs out.

Total paid out
₹2,44,64,225.17
Growth earned on the balance
₹1,44,64,225.17
Income in the final year
₹1,37,761.66 a month

This is a self-managed withdrawal plan that ends at zero. An annuity bought from an insurer works differently: it can pay for life, at rates the insurer sets.

Steady 7% a year on the remaining balance, income taken at the start of each month and raised once a year. Excludes taxes, fees and market swings. Returns are not guaranteed.

Full schedule and CSV

Display rounds only for reading. CSV preserves full precision.

Monthly income and remaining balance each year
YearMonthly income (INR)Paid in year (INR)Balance at year end (INR)
1₹42,715.47₹5,12,585.63₹1,01,68,179.71
2₹44,851.24₹5,38,214.91₹1,03,21,540.99
3₹47,093.81₹5,65,125.66₹1,04,57,716.99
4₹49,448.50₹5,93,381.94₹1,05,74,108.72
5₹51,920.92₹6,23,051.04₹1,06,67,865.45
6₹54,516.97₹6,54,203.59₹1,07,35,863.61
7₹57,242.81₹6,86,913.77₹1,07,74,684.01
8₹60,104.96₹7,21,259.46₹1,07,80,587.34
9₹63,110.20₹7,57,322.43₹1,07,49,487.68
10₹66,265.71₹7,95,188.56₹1,06,76,924.00
11₹69,579.00₹8,34,947.98₹1,05,58,029.47
12₹73,057.95₹8,76,695.38₹1,03,87,498.36
13₹76,710.85₹9,20,530.15₹1,01,59,550.42
14₹80,546.39₹9,66,556.66₹98,67,892.48
15₹84,573.71₹10,14,884.49₹95,05,677.16
16₹88,802.39₹10,65,628.72₹90,65,458.38
17₹93,242.51₹11,18,910.15₹85,39,143.48
18₹97,904.64₹11,74,855.66₹79,17,941.68
19₹1,02,799.87₹12,33,598.44₹71,92,308.67
20₹1,07,939.86₹12,95,278.37₹63,51,886.90
21₹1,13,336.86₹13,60,042.28₹53,85,441.43
22₹1,19,003.70₹14,28,044.40₹42,80,790.91
23₹1,24,953.88₹14,99,446.62₹30,24,733.28
24₹1,31,201.58₹15,74,418.95₹16,02,965.96
25₹1,37,761.66₹16,53,139.90₹0.00

ChangelogHow we test this calculatorEmbed this calculator

How this calculator works

  1. Step 1Start with the corpus₹1 croreInvested on the day income starts.
  2. Step 2The balance keeps earning7% a yearMoney not yet paid out still grows.
  3. Step 3Income rises each year5% a yearTo help keep up with prices.
  4. Step 4Solve for the first month₹42,715.47The amount that uses up the corpus in 25 years.

The plan ends at zero on purpose. Every rupee, plus the growth on it, is paid out over the years you choose.

Worked example

₹1 crore can pay ₹42,715.47 a month at first, rising to ₹1,37,761.66 in year 25.

The default plan
First monthly income
corpus ÷ (a × S)
Yearly growth factor
S = (1 − qᴺ) ÷ (1 − q), q = (1 + g) ÷ (1 + r)
  • a12 start-of-month payments of ₹1, valued at the start of the year from r
  • rreturn on the balance 7%
  • gyearly increase in income 5%
  • Nyears of income 25
  1. Corpus₹1,00,00,000.00
  2. Total paid out₹2,44,64,225.17
  3. Of which growth on the balance₹1,44,64,225.17
  4. First monthly income₹42,715.47

Reading the result

Planning for more years lowers the monthly income, but by less than you might expect.

  • 20 years₹51,103.91
  • 25 years₹42,715.47
  • 30 years₹37,164.34
First monthly income from the default corpus for different numbers of years
  • Rising 5% a year₹42,715.47 at firstReaches ₹1,37,761.66 a month by the final year.
  • Flat income₹68,922.47 every monthHigher at first, but it buys less each year as prices rise.

This is a self-managed withdrawal plan. An annuity bought from an insurer can pay for life, but at rates the insurer sets; compare its quote with this estimate.

Planning around a pension

A pension draws a fixed number of years from a corpus. Other tools cover building it and drawing without an end date.

To see how long a fixed withdrawal lasts, use the SWP calculator. The retirement planner estimates the corpus a retirement needs, and the NPS calculator models the National Pension System.

To retire much earlier, the FIRE calculator works out a target and the years to reach it.

Common mistakes

  • Mistake: Choosing a flat income for a long retirement.

    Instead: Check how much a flat amount buys in later years.

  • Mistake: Planning for too few years.

    Instead: Choose an age beyond your expected lifespan so the money lasts.

  • Mistake: Using a high return for money you need soon.

    Instead: Check a lower return, since the balance is being drawn down.

This calculator shows arithmetic on your assumptions. It does not recommend any product or amount.

Read how we test our calculators, or browse more money calculators.

Frequently asked questions

How does the calculator work out my monthly income?

It finds the first monthly amount that, taken at the start of each month and raised once a year, uses up your corpus and its growth exactly over the years you choose.

Why does the money run out?

The plan pays out the corpus as well as the growth on it. If you want the corpus to last for life, choose more years or a lower income.

Is this the same as buying an annuity?

No. An insurer’s annuity can pay for life at rates the insurer sets, and you usually cannot get the lump sum back. This tool models drawing down your own investments.

Does it include EPS or NPS pensions?

No. Scheme pensions follow their own rules. Add any such income to your plan separately.

Does it include tax?

No. Tax on income or gains is not deducted, so the amount you receive after tax may be lower.

Sources and methodology

The formulas are standard time-value-of-money results. We check every figure against golden values worked out independently, by closed form and by month-by-month simulation; see the methodology.

Written and maintained by Nitin Raturi, a software engineer (about the author). Last reviewed 27 Oct 2026; next review due by . Found an error? Tell us.

Changelog

  • : Initial release. Demand metrics remain unverified.

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