Estimate a defined-benefit pension and its lump-sum value.
Monthly pension = pensionable salary × years of service ÷ 70. With ₹15,000 salary and 30 years' service that is ₹6,428.57 a month.
A defined-benefit pension pays a monthly amount based on your salary and years of service. This calculator multiplies pensionable salary by service and divides by a divisor (70 for India's Employees' Pension Scheme) to give the monthly pension, then values the stream as a lump sum so you can compare with a one-time payout.
Schemes differ in salary caps, divisors, minimum service and indexation — check your own rules. To plan the whole of retirement see the Retirement Calculator and the Annuity Payout Calculator; for US benefits see the Social Security Calculator.
The calculator applies the standard financial formulas step by step.
| Item | Value |
|---|---|
| Pensionable salary | ₹15,000.00 |
| Service | 30 years |
| Monthly pension (salary × service ÷ divisor) | ₹6,428.57 |
| Yearly pension | ₹77,142.86 |
| Total over 20 years | ₹15,42,857.14 |
| Present value of the pension (lump-sum equivalent) | ₹8,74,460.20 |
| Case | Monthly pension |
|---|---|
| 20 years' service | ₹4,285.71 |
| 30 years' service | ₹6,428.57 |
| 35 years' service | ₹7,500.00 |
| Salary ₹10,000 | ₹4,285.71 |
| Discount rate 5% | ₹6,428.57 |
Monthly pension = pensionable salary × pensionable service ÷ 70, with the salary capped under the scheme's rules.
The salary on which the pension is based, often an average of the last years' pay and subject to a cap.
Compare the lump sum with the present value of the pension for your expected lifetime, and consider inflation and health.
A cautious long-term return or the yield on safe bonds; a higher rate lowers the pension's present value.
Some do, some do not. Use the yearly increase box to model it.
No. A defined-benefit pension is a formula; a pension from savings depends on investment returns — see the Annuity Payout Calculator.
It uses the standard formula: pension = salary × service ÷ divisor value = Σ pensionₜ ÷ (1 + r)ᵗ The full method and a worked example are shown on this page.
No. The calculator gives estimates for planning and learning. Real offers vary by lender, product and date, so confirm the details with your bank, lender or a qualified adviser before deciding.
Yes. The maths is identical in any currency; only the currency symbol shown in the results differs.
No. Everything is calculated in your browser and nothing you enter is uploaded or saved.
