Annuity Calculator - Calculate Pension Annuity
Calculate annuity payments for retirement. Plan your pension with lump sum and monthly annuity calculations.
Calculation Summary
Annuity with Return of Purchase Price (ROP) vs Without ROP Arbitrage
Contrasts Option A (With ROP), which refunds 100% of your initial purchase price to legal heirs/nominees upon death, against Option B (Without ROP), which permanently forfeits the capital to the insurer in exchange for higher lifetime monthly cash flow.
Immediate vs Deferred Annuity Compounding Simulator
Evaluate whether starting pension payouts immediately or deferring payout by 1 to 10 years (e.g., pre-retirees aged 50–58) maximizes lifetime pension and nominal wealth.
Visualizations
Payment Breakdown
Balance Over Time
Monthly Breakdown
Cumulative View
Calculation Schedule
About Annuity Calculator
Annuity & Pension Calculator Guide (India 2026)
Our Annuity Calculator calculates the guaranteed regular monthly or yearly pension stream you receive upon retiring and investing your accumulated retirement corpus into an immediate or deferred annuity plan.
Popular Guaranteed Pension Plans in India
- LIC Jeevan Shanti & Saral Pension: Popular single-premium immediate and deferred annuity plans with return of purchase price options.
- NPS 40% Mandatory Annuity: At age 60, National Pension System (NPS) subscribers must allocate a minimum 40% of their accumulated wealth into an approved Annuity Service Provider (ASP).
- Senior Citizen Tax Relief: Under Section 80TTB, senior citizens can claim deductions up to ₹50,000 on interest income from deposits, reducing their effective tax burden.
Frequently Asked Questions
What is an Annuity Calculator?
An Annuity Calculator calculates the guaranteed regular monthly or yearly pension payout generated by investing a lump-sum retirement corpus into life insurance and pension schemes.
How much monthly pension does ₹25 Lakh give in India?
At an average annuity rate of 7.0% p.a., a purchase price of ₹25,00,000 yields approximately ₹14,583 per month in guaranteed immediate pension.
What is the difference between Immediate and Deferred Annuity?
Immediate Annuity begins paying regular income right after lump-sum payment, ideal for recent retirees. Deferred Annuity allows your corpus to compound for 5 to 15 years before regular pension payouts begin.
Are annuity pension payouts taxable in India?
Yes, annuity income received from pension plans is added to your total income under "Income from Other Sources" and taxed at your applicable income tax slab rates.