Annuity calculator: monthly payout from a corpus, or the corpus for a payout
This annuity calculator answers two questions: how much a lump sum pays you each month, and how big a lump sum you need for the income you want. Choose a life annuity bought from an insurer at a quoted annuity rate — immediate or deferred, with or without return of purchase price — or a fixed-term annuity (annuity certain) that pays out a fund over a set number of years at an assumed return.
For a life annuity it also shows how many years of payments it takes to get the price back and the return you effectively earn if payments run to a given age. For a fixed term it gives the year-by-year schedule of payments, interest and the remaining balance. No insurer’s rates are built in: you enter the rate from your quote. It works in rupees, dollars, pounds and other currencies, and in NPS it helps size the annuity bought at exit alongside the NPS calculator.
How to use the Annuity Calculator
- Choose Life annuity (insurer rate) or Fixed term, and whether to work out the income or the lump sum.
- Pick the currency and payout frequency, and enter the purchase price (or the income you want).
- For a life annuity enter the annuity rate from your quote, your age, the age to count payments to, any deferment and whether the price is returned to your nominee.
- For a fixed term enter the return, the term, any yearly increase, whether payments come at the start or end of each period, and any years before payouts start.
- Read the payout, the payback period and return, and the rate or year-by-year table, then copy the summary.
Annuity Calculator features
Two annuity types
Life annuity at a quoted rate, and an annuity certain for a fixed term.
Both directions
Income from a lump sum, or the lump sum needed for a target income.
Return of purchase price
Shows what goes to the nominee and the effective return with or without it.
Deferred and rising payments
A deferment period for either type, and yearly increases for fixed-term payouts.
Rate sensitivity and schedule
Income at nearby rates for life annuities; the full payout schedule for a fixed term.
Annuity formulas with worked examples
Life annuity. Insurers quote an annuity rate as a percentage of the purchase price a year. Monthly payout = price × rate ÷ 12. ₹20,00,000 at an illustrative 7% pays ₹11,667 a month (₹1,40,000 a year), and it takes 100 ÷ 7 = 14.3 years of payments to receive the price back. With a life-only annuity, payments until 85 give an effective return of about 5.1% a year on a purchase at 60; with return of purchase price, the price comes back at death, so the return equals the rate itself (7.23% a year with monthly compounding) — but plans with this option quote lower rates. To find the corpus for an income, divide the yearly income by the rate: ₹50,000 a month at 6% needs ₹1 crore.
Annuity certain. For a fixed term, payment = PV × i ÷ (1 − (1 + i)−n), where i is the yearly return divided by the payments per year and n is the number of payments. ₹10,00,000 at 8% a year paid monthly for 10 years gives ₹12,133 a month; paid at the start of each month (an annuity due) it is ₹12,052. With a yearly increase the tool sums the present value of every rising payment instead.
Annuity options compared
In India, NPS subscribers must use at least 20% of the corpus (40% for government subscribers) to buy an annuity at normal exit when it is above ₹12 lakh, under the PFRDA exit regulations as amended in December 2025 (as of October 2026). Compare government options in the NPS vs UPS calculator.
| Option | Income | On death | Rate |
|---|---|---|---|
| Life annuity (life only) | For life | Stops; nothing returned | Highest |
| With return of purchase price | For life | Price paid to nominee | Lower |
| Joint life | For both lives | Continues to spouse | Lower |
| Increasing annuity | Rises each year | As chosen | Starts lower |
| Deferred annuity | Starts later | As chosen | Usually higher |
| Annuity certain (fixed term) | For the term only | Remaining payments or balance to the estate | Your assumed return |
Things to check before you buy
- Get written quotes for the same option from several insurers; the rate for your age and option is what matters, not an advertised headline rate.
- A level annuity loses buying power: at 6% inflation ₹11,667 buys about half as much after 12 years.
- Monthly payouts usually come at a slightly lower total than yearly ones; enter the rate quoted for the frequency you choose.
- Annuity income is generally taxed as income. In India it is added to your income and taxed at your slab rate.
- A fixed-term payout from your own fund keeps the money flexible but can run out; see the retirement calculator to plan the whole picture.
Annuity Calculator FAQ
How is a monthly annuity payout calculated?
For an insurer annuity, monthly payout = purchase price × annual annuity rate ÷ 12. The annuity calculator does this for any frequency and also works out the lump sum needed for a target monthly payout.
How much annuity will I get for ₹10 lakh?
It depends on the rate quoted for your age and option. At an illustrative 7% a year, ₹10 lakh pays about ₹5,833 a month; at 6%, ₹5,000. Use your own quote.
What is return of purchase price?
An option where the money you paid is returned to your nominee when you die. The income rate is lower than a life-only annuity because of that payment.
What is the difference between an immediate and a deferred annuity?
An immediate annuity starts paying from the next period after purchase. A deferred annuity starts after a waiting period you choose and usually quotes a higher rate.
How do I use this as an NPS annuity calculator?
Enter the part of your NPS corpus that must buy an annuity (at least 20%, or 40% for government subscribers) as the purchase price and the rate quoted by an annuity provider.
Is annuity income taxable?
Usually yes. In India annuity income is taxed at your slab rate in the year you receive it. This page is an estimate, not tax or financial advice.