Annuity Calculator

An annuity calculator is an online financial tool that predicts the future value of your annuity investments with ease and precision. By inserting the required values, you can quickly determine the projected growth of your annuity plans over time. In India, purchasing an annuity is one of the most common ways of financing life after retirement, and most experts consider it an insurance tool rather than an investment instrument.

Read more

Get Guaranteed Lifelong Pension
For You And Your Spouse

Invested amount returned to your nominee

Best Pension Options
  • Invest ₹20k monthly & Get yearly pension of ₹4.2 Lacs for Life

  • Guaranteed Return For Life

  • Multiple Annuity Options

We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
Buy Online and Get ₹ 1.4 Lacs extra#
Get Guaranteed Lifelong Pension
For You And Your Spouse
Invested amount returned to your nominee
+91
Secure
We don’t spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
Annuity Calculator

Your Age

18 Years 59 Years
Enter Your Age

Monthly Investment

₹500 ₹10L
Enter Investment Per Month

Expected Return on Investment

5% 15%
Expected Return on Investment

Percentage of Corpus Allocated for Pension

40% 100%
Enter Corpus Percentage

Expected Return from Pension

5% 15%
Enter Annuity Return
₹0
Your Monthly Pension
₹0
Your Monthly Pension
Your Pension Calculation
Your Pension Calculation
Total Investment
Returns Earned
Maturity Amount
Maturity Amount split (Lumpsum & Pension)
60%
Lumpsum Amount
At the age of 60 Yrs
40%
Pension Wealth
At the age of 60 Yrs

What is an Annuity Calculator?

An annuity calculator is a tool that helps you estimate the payouts or investments needed for an annuity.

An annuity is a financial product that provides a series of payments at regular intervals, typically monthly, quarterly, semi-annually, or annually, for a predetermined period or for the rest of the annuitant's life.

The annuity calculator typically requires inputs such as: 

  • Initial investment amount

  • Rate of return

  • Frequency of payments

  • Duration of the annuity

Results of Annuity Calculator

The annuity calculator helps to compute the income from investments in a specific period. By providing the above-mentioned information, the investors can calculate the retirement result, which includes:

  • Total retirement amount

  • Future value of savings available

  • Additional savings that are required

  • Number of years your investment will generate payment at a specified return

  • A lump sum investment amount is needed to generate the desired monthly income

How Does an Annuity Calculator Work?

An annuity calculator uses the following formula to calculate the Future Value (FV) of your annuity plan:

The Annuity Calculator Work on the following formula:
FV = PMT * [ (1 + i)^n - 1 ] / i
Here is the formula for annuity calculation:
FV
stands for Future value of the annuity
PMT
stands for Payment amount made at each interval (e.g., monthly payment)
i
stands for Interest rate per compounding period (e.g., annual rate divided by the number of compounding periods per year)
n
stands for Total number of compounding periods

Steps to Use an Annuity Calculator

Step 1- Find the Calculator: Search for "Annuity Calculator" on the Policybazaar website.

Step 2- Input Your Details: Enter the following information in the annuity deposit calculator: 

  • Age

  • Investment amount (for immediate annuities)

  • Monthly investment amount (other annuities)

  • Expected Rate of Return 

  • Percentage of corpus allocated for pension

  • Expected return from pension

Step 4- Calculate: Click the "calculate" button to see the estimated annuity payout.

IMPORTANT NOTE: Take a close look at the results provided by the Policybazaar Annuity Plan Calculator. Consider how they align with your financial goals and retirement plans. You may want to compare the results with different scenarios by adjusting the inputs.

pension-ki-no-tensionpension-ki-no-tension

Benefits of Annuity Calculator

An annuity calculator can be a valuable tool for retirement planning, offering several benefits:

  • Clarity: It helps you understand how much income you can expect from an annuity plan based on your investment and other factors.

  • Planning: It aids in financial planning by allowing you to experiment with different scenarios to see how they affect your future income.

  • Comparison: You can compare different annuity plan options to choose the one that best fits your needs and goals.

  • Time-saving: It saves time by quickly calculating complex annuity figures, which would otherwise require manual calculations.

  • Accuracy: The annuity calculator provides accurate estimates, ensuring you make informed decisions about your best annuity plans and retirement finances.

  • Empowerment: Using an annuity calculator empowers you to take control of your financial future by understanding the implications of various investment choices.

Invest More Get More
Invest ₹10K/Month YOU GET ₹1.5 LAKHS* MONTHLY PENSION View Plans
Invest ₹7K/Month YOU GET ₹1 LAKHS* MONTHLY PENSION View Plans
Invest ₹5K/Month YOU GET ₹75 THOUSAND* MONTHLY PENSION View Plans
standard T&C Apply *

Taxation of Annuity

As annuities are specifically designed to provide regular pension income to individuals after retirement, it is taxable as per different slabs governed by the existing rules of taxation. 

  1. Tax-Deferred Growth:

    • Contributions you make towards the annuity plan are not taxed currently. This allows your money to grow within the plan without immediate tax implications.

  2. Tax Benefits During Contribution:

    • Contributions towards annuity plans qualify for tax deductions under sections 80C, 80CCC, and 80CCD of the Income Tax Act, 1961.

    • This allows you to reduce your taxable income and potentially save on taxes.

    • There is a maximum limit on this deduction (currently Rs. 1.5 lakh annually).

  3. Taxation of Annuity Payments:

    • When you start receiving payouts from the annuity, those payments are generally considered taxable income.

    • The tax rate depends on your total taxable income and the prevailing tax slabs in your country.

FAQs

  • How do you calculate annuities?

    The formulas to calculate the present value (PV) of the best annuity plan are mentioned below:

    FV = PMT * [ (1 + i)^n - 1 ] / i

    Where:

    • FV - Future value of the annuity

    • PMT - Payment amount made at each interval (e.g., monthly payment)

    • i - Interest rate per compounding period (e.g., annual rate divided by the number of compounding periods per year)

    • n - Total number of compounding periods

  • How much can a 100000 annuity pay per month?

    You can estimate your monthly payouts from a chosen best annuity plan by inserting the following factors:
    • The interest rate of the annuity.

    • The number of years the annuity will pay out (payment period).

    • Whether it's an ordinary annuity or an annuity due.

  • Why do we calculate annuity?

    We calculate annuities to figure out several things, such as:
    • The monthly payment amount

    • The future value of an annuity

    • How long an annuity will last

  • What is an example of an annuity?

    Some examples of Annuity plans are:
    • ICICI Prudential Guaranteed Pension Plan Flexi

    • Max Life Guaranteed Return Insurance Plan

    • Tata AIA Forutne Guanrantee Pension Plan

    In these pension plans, you contribute money throughout your working years, and then upon retirement, you receive a fixed monthly payment until the end of your life. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Pension plans articles

Recent Articles
Popular Articles
How Can I Get a 3000 Pension?

01 May 2024

Securing a monthly pension of 3000 rupees is a goal that many
Read more
Pension Calculator

13 Feb 2024

Pension calculator helps you calculate the amount you could
Read more
NPS vs ULIP - Which One Is Better?

10 Oct 2023

NPS (National Pension System) and ULIP (Unit Linked Insurance
Read more
Best Mutual Funds for Retirement

21 Sep 2023

Planning for a secure and comfortable retirement is a financial
Read more
Mahila Samman Savings Certificate (MSSC)

04 Sep 2023

The Mahila Samman Savings Certificate (MSSC) or Mahila Samman
Read more
SBI Annuity Deposit Scheme Calculator 2024
SBI Annuity Deposit Scheme Calculator 2024 is an online tool that helps you figure out your fixed annuity
Read more
Top 15 Pension Plans in India
The Pension Plan, also known as a Retirement Plan is the best investment instrument allowing individuals to build
Read more
Sevarth Mahakosh
Sevarth Mahakosh Portal is a one-stop solution for all state government employees' financial transactions and
Read more
NPS Calculator 2024
NPS Pension Calculator is a financial tool that calculates potential returns on the National Pension Scheme, by
Read more
NPS Calculator for Government Employees
National Pension Scheme or National Pension System (NPS) is launched by the Government of India for all its
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL