Pension Calculator (Corpus to Income)
Turn a retirement corpus into a sustainable monthly pension, with optional inflation indexing of the payout.
Formula
This answers the question every retiree asks: how much can I safely draw each month so the money lasts? By discounting at the real return (return minus the rate at which you grow the pension each year), the tool finds an inflation-indexed withdrawal that exhausts the corpus over the chosen horizon. A level (non-indexed) pension starts higher but its purchasing power erodes; an indexed pension starts lower but holds its real value. The result is sensitive to longevity — plan for a long life, because outliving your corpus is the real risk. This is a deterministic plan; a Monte-Carlo or guardrails approach handles market-sequence risk better.
Educational. Market returns are uncertain; this is not a guaranteed income. Not financial advice. Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need pension calculator results fast? Analysts, founders, traders and finance professionals use the Pension Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Pension Calculator (Corpus to Income)
Turn a retirement corpus into a sustainable monthly pension, with optional inflation indexing of the payout. This answers the question every retiree asks: how much can I safely draw each month so the money lasts? By discounting at the real return (return minus the rate at which you grow the pension each year), the tool finds an inflation-indexed withdrawal that exhausts the corpus over the chosen horizon. A level (non-indexed) pension starts higher but its purchasing power erodes; an indexed pension starts lower but holds its real value. The result is sensitive to longevity — plan for a long life, because outliving your corpus is the real risk. This is a deterministic plan; a Monte-Carlo or guardrails approach handles market-sequence risk better. The governing relationship is Annual₁ = Corpus × rᵣ/(1−(1+rᵣ)⁻ⁿ), rᵣ = (1+r)/(1+infl) − 1. The Pension Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Pension Calculator (Corpus to Income)
- 1Enter Retirement corpus (₹), Return on corpus (%), Pension indexed at (%), Years pension must last (yrs) into the Pension Calculator.
- 2The result is computed automatically using Annual₁ = Corpus × rᵣ/(1−(1+rᵣ)⁻ⁿ), rᵣ = (1+r)/(1+infl) − 1 — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Pension Calculator (Corpus to Income)?
- ✓Computes pension calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Pension Calculator?+
Pension Calculator uses Annual₁ = Corpus × rᵣ/(1−(1+rᵣ)⁻ⁿ), rᵣ = (1+r)/(1+infl) − 1. This answers the question every retiree asks: how much can I safely draw each month so the money lasts? The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Pension Calculator need?+
Enter Retirement corpus (₹), Return on corpus (%), Pension indexed at (%), Years pension must last (yrs) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Pension Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. Educational. Market returns are uncertain; this is not a guaranteed income. Not financial advice. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Pension Calculator?+
By discounting at the real return (return minus the rate at which you grow the pension each year), the tool finds an inflation-indexed withdrawal that exhausts the corpus over the chosen horizon. A level (non-indexed) pension starts higher but its purchasing power erodes; an indexed pension starts lower but holds its real value. The result is sensitive to longevity — plan for a long life, because outliving your corpus is the real risk. This is a deterministic plan; a Monte-Carlo or guardrails approach handles market-sequence risk better.
What is the Pension Calculator based on?+
The method follows authoritative sources: Sustainable withdrawal / inflation-indexed annuity math. The formula and references are shown on the page so you can verify and cite the result.
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