Monthly Pension Calculator
Estimate monthly pension income
Work out the monthly income you can draw from savings during retirement if you withdraw them over a number of years while they keep earning. You need the capital, the assumed return and the payout years.
Calculate your monthly retirement income
Result
Monthly income
€948.42
- Total received
- €284,526.79
- Returns earned
- €84,526.79
Formula version: 1.0.0
How to use the monthly pension calculator
- Enter the capital available at retirement.
- Enter the annual return you assume while withdrawing it.
- Enter how many years you want the payments to last and review the monthly income.
Monthly income formula
Income = K × i / (1 − (1 + i)^−n)
What each variable means
- K
- capital
- i
- monthly return
- n
- payout months
It's the loan payment formula in reverse: the capital “pays” you each month.
Monthly pension example
€200,000 at 3% drawn down over 25 years gives €948.42 a month; you'd receive €284,526.79 in total.
Illustrative example with the data shown; not a guaranteed outcome.
Assumptions and limitations
- A constant monthly income that runs the capital down to zero at the end.
- Constant return; taxes, fees and inflation are not included.
Frequently asked questions
What if I live longer?
This income runs the capital out at the end of the term; choose a prudent term or combine it with a lifetime pension.
Does it keep its purchasing power?
No: the income is fixed. With inflation, it buys a little less each year.
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See retirement calculatorsIndicative result for information only; not financial or tax advice. Read the legal notice · How we calculate results
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