Pension Calculator

The pension calculator shows how your retirement capital grows from monthly contributions at a given return, and how much you can withdraw every month after retirement. It works in two modes: accumulation and payouts, with a year-by-year growth chart. The calculation is instant, on your device.

How to use the calculator

Choose a mode. «Accumulation»: enter your age, planned retirement age, monthly contribution, amount already saved and expected return. The calculator shows your capital at retirement, how much of it you contribute yourself, how much grows as interest, and a chart of growth by year. «Payouts»: enter the accumulated capital, the payout period and the return on the balance — it computes the monthly payment and the total you will receive. For planning in today’s money, subtract expected inflation from the return.

How retirement capital grows

Capital grows by compound interest: every monthly contribution earns interest, and the interest itself starts earning interest, so growth accelerates over time. The calculator uses the annuity formula FV = PMT × ((1+r)ⁿ − 1) / r, where PMT is the monthly contribution, r the monthly rate and n the number of months. For example, saving $150 a month at 8% a year from age 30 to 65 you accumulate ≈$344,000, of which only $63,000 are your own contributions — the rest is growth.

What return to assume

Conservatively, use 5–8% a year for deposits and bonds and 8–10% for balanced long-term pension portfolios. Stock markets have historically returned about 10–12% a year, but with deep drawdowns along the way. For planning, take a below-average scenario: if you expect 10%, plan with 7–8%. Past returns do not guarantee future results.

How much you can withdraw monthly

In payout mode the calculator treats your capital as an annuity: equal payments at the end of each month while the remaining balance keeps earning interest. For example, a capital of $50,000 at 6% a year pays ≈$358 a month for 20 years — over the period you receive ≈$86,000, more than the initial amount, because the balance keeps growing. A quick rule of thumb is the 4% rule: $100,000 of capital allows about $333 a month in the first year, then the amount is raised with inflation.

The calculation is for information only and is not individual investment advice.

Frequently asked questions

How do I calculate my retirement capital?
Use the future value of an annuity: FV = PMT × ((1+r)ⁿ − 1) / r, where PMT is the monthly contribution, r the monthly interest rate (annual rate divided by 12) and n the number of months. Enter your numbers in the calculator and it computes the result instantly.
How much should I save for retirement?
A common guideline is 10–15% of income throughout your working life. For scale: to receive $500 a month for 20 years of payouts at 6% on the balance you need ≈$69,800 of capital; to build it by 65 at 8% a year, start at 30 — about $30 a month, at 45 — about $118 a month. The earlier you start, the smaller the contribution.
What is the 4% rule?
It says you can withdraw 4% of your capital in the first retirement year and then increase the amount with inflation — historically this has sustained payouts for 30+ years. Example: $100,000 of capital gives about $333 a month in year one. The rule is a rough guide, not a guarantee.
What return should I assume?
Conservatively 5–8% a year for deposits and high-grade bonds, 8–10% for a balanced pension portfolio, 10–12% for stock-heavy portfolios — historically. Plan with a below-average scenario and remember: past returns do not guarantee future results.
Does the calculator include the state pension and inflation?
No. All amounts are in nominal money, without inflation, and the state pension is not added — check your estimated state pension in your pension fund’s statement and add it separately. For planning in today’s money, use return minus inflation, for example 8% − 4% = 4%.
Is it better to pay off debt or invest?
An expensive loan is a guaranteed «return»: paying off a 20% credit card is like earning 20% risk-free, so it usually comes first. A cheap mortgage at 6–8% is a tougher call. A sensible order: emergency cushion → expensive debts → investments.

Updated: Oct 23, 2026

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