Annuity Calculator India: Monthly Pension from a Lump Sum
The monthly pension a lump sum can buy at the annuity rate an insurer quotes you. Rate is your input, not a forecast.
₹20 L
The rate is an example, not a quote or a forecast. Enter the rate an insurer gives you, which depends on your age and the option you choose.
Monthly pension
₹11,667
₹1,40,000 a year before tax. Insurers' monthly rates can differ slightly from a yearly rate divided by twelve.
Will your retirement plan hold up?
The app estimates how much you may need, the probability of reaching that goal, and a month-by-month SIP plan to get there.
Free to download · advisory ₹999 a year · SEBI-registered Investment Adviser (INA000022172)
How to use the Annuity calculator
Estimate the pension a lump sum can buy, using the rate an insurer quotes you.
- Enter the lump sumThe amount you would use to buy the annuity.
- Enter the quoted rateUse the rate from an insurer's quote for your age and option. The starting figure is only an example.
- Read the pensionYearly pension = lump sum × annuity rate. Monthly is about a twelfth of that.
What changes the rate you get
An annuity turns a lump sum into a regular pension, usually for life. The rate depends on your age, the insurer and the option you choose. Options that return the purchase price to a nominee generally pay a lower pension than a plain life annuity.
Our guide on what an annuity is explains the options and when each applies.
This calculator is educational and uses the inputs shown. Read the related terms in the nyvo money glossary and consider regulated advice for decisions that depend on your full finances.
Frequently asked questions
How is an annuity pension calculated?
Yearly pension = amount used to buy the annuity × the annuity rate the insurer quotes. For example, ₹20,00,000 at a quoted 7% gives ₹1,40,000 a year, about ₹11,667 a month.
Is annuity income taxable?
Yes. The income from an annuity is taxed as income in the year you receive it, at your slab rate.
How much of my NPS must buy an annuity?
Since PFRDA's December 2025 amendment, a non-government subscriber must use at least 20% of the corpus at normal exit, and government subscribers at least 40%. Our NPS withdrawal rules guide has the details.
Read more on this
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OpenCalculators are educational estimates, not guarantees or personalised recommendations. Investment in securities markets is subject to market risk. Past performance does not guarantee future returns. Verify current product, tax and regulatory information before acting.