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Retirement Income Calculator

Work out retirement income instantly with clear inputs, formula shown and shareable results.

About Retirement Income Calculator

Given a corpus, a return and a horizon, the monthly income is the annuity payment that exhausts the fund exactly at the end. The interest-only figure shows the lower income that would preserve the capital indefinitely.

Formula

Income from corpus

Income = C·r/(1-(1+r)^-n); interest only = C × r

Worked example

With the default values below, Retirement Income Calculator returns Sustainable Monthly Income of $154,363.24. Change any input above and every figure here is recalculated in your browser.

Inputs used

Retirement Corpusminimum 0
20,000,000
Expected Return On Corpusaccepts 0–100 %
8 %
Years The Income Must Lastaccepts 1–50
25

Results

Sustainable Monthly Income
$154,363.24
Annual Income
$1,852,358.93
Total Drawn Over The Period
$46,308,973.16
Income If The Corpus Is Never Touched
$133,333.33

Step by step

  1. 1Values used
  2. 2Income from corpus
  3. 3Sustainable Monthly Income= 154,363.24
  4. 4Annual Income= 1,852,358.93
  5. 5Total Drawn Over The Period= 46,308,973.16
  6. 6Income If The Corpus Is Never Touched= 133,333.33

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Should the corpus be fully drawn down?

It depends on longevity and legacy plans. Drawing capital gives more income but leaves no buffer for a long life.

Does this allow for inflation?

No — the income is level. For a rising income, use a real return and treat the answer as today's money.

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