Annuity Payout Calculator
Convert a lump sum into a fixed monthly payout for a chosen term. See interest earned and total payout instantly.
The lump sum you convert into income.
Monthly payout
₹41,822
Total payout
₹1,00,37,281
Over 240 months
Interest portion
₹50,37,281
Principal returned
49.8%
Of the total payout
A fixed-term annuity pays a constant monthly amount until the corpus is exhausted. In India, annuity income is taxed at your slab rate and part of the corpus may not be returned if it is a lifetime plan — check the terms before buying.
Annuity Payout Calculator on True Calculator gives you an instant, accurate answer with no sign-up and no app install. Convert a lump sum into a fixed monthly payout for a chosen term. See interest earned and total payout instantly. Every result shows the formula and a worked example so you can verify the calculation yourself, and all values are computed in your own browser — your numbers never leave your device.
Popular uses: annuity payout calculator · annuity income calculator · monthly pension calculator
How We Calculate
This calculator uses standard financial formulas verified by our team. All calculations are performed instantly in your browser using JavaScript — no data is sent to any server.
We use RBI-approved formulas and regularly updated bank rates. All rates and standards are sourced from official government and regulatory websites.
When to Use This Calculator
Use this calculator at the transition point — the moment a retirement corpus must start producing income — to translate a lump sum into a monthly number you can live on. It is the natural second step after the annuity calculator: accumulate first, then convert. The tool answers questions like how long ₹1 crore lasts at a given withdrawal rate, or what corpus is needed to generate a target monthly income, which is the reverse reading of the same formula. Indian retirees often combine it with EPF and PPF payouts to check total monthly income against expenses. Because the payout and the term are both fixed, it is an honest stress test — use a low return assumption and see whether the income still covers your needs. The interest portion of the payout is taxable at your slab.
How to Use This Calculator
- Step 1: Enter the corpus you will convert into income — the maturity value of your annuity or retirement fund.
- Step 2: Set the expected return the insurer or instrument will earn during the payout phase.
- Step 3: Enter the payout term in years — how long you need the income to last.
- Step 4: Read the monthly payout, the total payout over the term, and the interest portion the corpus generates.
Worked Example
Deepa retires with a ₹50,00,000 corpus and buys a 20-year term-certain annuity earning 8% per year. The monthly payout works out to about ₹41,822, totalling ₹1,00,37,281 over 240 months. Of that, ₹50,37,281 is interest — the corpus roughly doubles across the term. Had she chosen 10 years at 7% on a smaller ₹10,00,000 corpus, the payout would be about ₹11,611 monthly. Longer terms pay less per month but spread the corpus further.
Tips and Common Mistakes
- •Match the payout term to your life expectancy plus a margin — an annuity that ends at 80 is painful if you live to 90.
- •Compare term-certain versus lifetime plans; lifetime pays less monthly but removes longevity risk.
- •Factor TDS and slab-rate tax on the interest portion when sizing your true monthly income.
- ✗Avoid selecting a term purely by monthly payout size — a short term can exhaust the corpus while you still need income.
- ✗Avoid ignoring the return-of-corpus option if you want money left for nominees; it lowers the payout.
Frequently Asked Questions
What does this calculator tell me?
It converts a lump-sum corpus into a fixed monthly income for a chosen term. For example, ₹50 lakh at 8% over 20 years pays ₹41,822 per month. You can compare how long a corpus lasts versus how much income you need.
What is the difference between term-certain and lifetime annuities?
A term-certain annuity pays for a fixed number of years, like this calculator; a lifetime annuity pays until death. Lifetime plans typically pay less per month for the same corpus because the insurer carries the longevity risk. Some plans also offer return of corpus to nominees.
How is annuity income taxed in India?
The interest component of the monthly payout is taxable at your slab rate — for someone in the 30% bracket, the tax can materially cut the effective income. Payouts are also subject to TDS above certain thresholds. Account for this in your retirement planning.
What happens to the corpus at the end of the term?
In a plain term-certain annuity the corpus is exhausted exactly at the end of the term — the 'principal returned' card shows only what portion of the payouts was your own money. If you want the capital back, choose a plan with return-of-premium, which pays less monthly.
Should I use this with the annuity calculator?
Yes — they are two halves of the same plan. Use the annuity calculator to project the corpus you can accumulate, then this one to see what monthly income that corpus buys. Adjust the rate in both to stay consistent.
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