Annual Retirement Income Calculator
Estimate your retirement corpus and the annual income you can expect during retirement.
Pre-retirement
Sample value. Enter your own.
In retirement
Sample value. Enter your own.
Annual retirement income
$6,847
Corpus at retirement
$101,524
Please note that these calculators are for illustrations only and do not represent actual returns. Investment returns are not guaranteed. Actual retirement income depends on investment performance, inflation, taxes, fees, and future market conditions.
What is an annual retirement income calculator?
This calculator helps you estimate how much annual income you can expect during retirement based on your current savings, regular contributions, and expected returns. It projects your corpus at retirement and then calculates a sustainable annual withdrawal over your retirement years.
How is this calculated?
The calculation runs in two stages. First, your pre-retirement corpus grows using compound growth on your current principal plus the future value of your annual additions. Second, that corpus is treated as a fixed pool earning the post-retirement growth rate, and the calculator solves for the level annual withdrawal that exactly exhausts it after your chosen payout period — similar to how a loan amortizes, just running in reverse from a lump sum down to zero instead of from zero up to a payoff.
This means your post-retirement growth rate assumption matters enormously: a corpus that keeps earning even a modest return during retirement can sustain meaningfully higher withdrawals than one assumed to sit in cash, since the remaining balance keeps growing between withdrawals rather than only shrinking.
How to use this calculator
- Enter your current principal (savings earmarked for retirement).
- Enter your annual addition (how much you'll add each year until retirement).
- Set the years to grow (remaining working years).
- Choose a pre-retirement growth rate (expected return on investments).
- Specify the years to pay out (your expected retirement duration).
- Choose a post-retirement growth rate (return on remaining corpus).
- The calculator will show your annual retirement income and corpus.
Understanding the results
Corpus at retirement
This is the total amount you'll have saved by the time you retire, considering your current savings, annual additions, and investment growth.
Annual retirement income
This is the amount you can withdraw each year during retirement, assuming the remaining corpus continues to earn the post-retirement growth rate.
Related
- LessonRetirement Planning — Turn a distant, abstract goal into a practical, numbers-based savings system.
- CalculatorSWP Calculator — How long a lump sum lasts with a fixed monthly withdrawal — or whether it's sustainable forever.
Common questions
Expected long-term investment returns vary depending on your portfolio, asset allocation, and market conditions. Stocks have historically delivered higher long-term returns than bonds or cash, but they also involve greater risk. Choose assumptions that match your investment strategy. Choose based on your asset allocation.