Pension Calculator
Estimate annual and monthly pension from years of service, final average salary, and an accrual percent. Optionally discount monthly payments to a lump-sum sketch. Informational, not a plan quote.
Rated 4.6 out of 5 based on 274 reviews
How to sketch a defined-benefit pension
- Enter years of service and final average salary from the plan definition you are modeling.
- Enter the accrual percent per year of service.
- Optional: set a discount rate and payout years to see a present-value lump-sum sketch of the monthly stream.
- Read estimated annual pension, monthly amount, and any lump-sum row.
- Treat the result as a formula sketch, not a plan quote or retirement advice.
Defined-benefit pension sketch
Years × final salary × (accrual% / 100)
| Annual benefit | yearsService × finalSalary × (multiplier / 100) |
|---|---|
| Monthly | Annual benefit / 12 |
| Accrual field | multiplier as percent per year of service |
| Optional lump sum | Present value of monthly payments at a typed discount rate |
| Omitted | COLA, survivor options, vesting, and plan caps |
| Advice | Informational. Not a plan quote. |
What this pension page sketches
Many defined-benefit plans describe a benefit as years of service times a final average salary times an accrual percent. This page applies that identity and divides by 12 for a monthly figure. It does not read a specific plan document or apply Social Security offsets.
Formulas used
Annual pension = years of service × final salary × (accrual percent / 100). Monthly = annual / 12. When discount rate and payout years are both greater than 0, the page also shows a present value of those monthly payments at a monthly discount rate equal to the annual rate divided by 12.
Related money pages
A fixed withdrawal from a nest egg is on annuity payout. Level annuity solve modes sit on annuity. Tax-deferred growth sketches without a defined-benefit formula are on Roth IRA.
Use cases
Translate a handbook accrual rate into an annual dollar sketch. Compare two accrual percents on the same salary and service. Rough a lump-sum present value when you also type a discount rate and payout horizon. Not an official benefit estimate from a plan administrator.
Worked example
Thirty years of service, $80,000 final salary, and 1.5% accrual give annual pension = 30 × 80,000 × 0.015 = $36,000, or $3,000 per month. With a 4% discount rate and 20 payout years, the page also sketches a present value of that monthly stream.
Limits
No COLA, early-retirement reduction, survivor election, or IRS / plan dollar caps. The lump-sum row is a simple annuity present value, not a plan actuarial factor. Informational, not a plan quote. See the disclaimer.