Financial Calculators
Annuity Income Calculator
How much monthly income can a corpus pay forever, principal untouched? The cleanest arithmetic in retirement.
Monthly income
₹25,000
without touching the principal
- Corpus
- ₹50,00,000
- Yearly income
- ₹3,00,000
Shows the income a corpus generates at a given rate with the principal intact. Annuity plans from insurers, and options like return of purchase price, have provider-specific rates; this is the clean arithmetic behind them.
Income with the principal intact
The simplest retirement income question: if a corpus earns a certain rate and you spend only the earnings, what lands in your account each month? This calculator answers exactly that, the arithmetic underneath annuity plans, SCSS payouts and every interest-only income strategy.
Its limitation is the strategy's limitation: income that never grows loses to inflation over a long retirement. That is why we usually pair a payout base like this with a growth sleeve drawn via SWP, so the later years are funded as well as the early ones.
The formula
Monthly income = Corpus x annual rate / 100 / 12Worked example: a corpus of Rs 50,00,000 at a 6% payout rate generates Rs 25,000 per month, Rs 3,00,000 a year, with the principal untouched.
Frequently asked questions
How is this different from an SWP?
An SWP withdraws a fixed amount regardless of what the corpus earned that month, so the principal can grow or shrink. This calculator models pure income at a rate, principal constant.
What rates do annuity plans actually offer?
Insurer annuity rates vary with age, plan type and options like return of purchase price. Use this calculator with the quoted rate to sanity-check any annuity illustration.
Is annuity income taxable?
Annuity payouts from insurers are generally taxable as income at slab rate. Factor tax before comparing options.
Will this income keep up with inflation?
Not by itself; the payout is flat while prices rise. Pair it with growth assets, or choose increasing-annuity options, to protect later years.
Design income for all thirty years.
Base income from dependable instruments, growth via SWP for the later years. We structure both.