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Compare annuity cash flows across survival horizons using XIRR, nominal cash received, break-even time and purchasing-power erosion.
Enter the facts and calculate. The result appears here.
Compare annuity cash flows across survival horizons using XIRR, nominal cash received, break-even time and purchasing-power erosion.
Annuities exchange liquidity/capital for a stream of future cash flows and, depending on the option, may include joint-life or return-of-purchase-price features. A headline pension rate alone is not enough to compare options.
This tool runs horizon scenarios because annuity economics are longevity-dependent. A short-horizon IRR and a long-horizon IRR can be very different.
The “final-year pension in today’s rupees” highlights inflation erosion. A fixed ₹70,000 pension can lose substantial purchasing power over a long retirement even though the nominal cash amount is unchanged.
The model is a cash-flow comparison, not a mortality model and not a recommendation between annuity providers. Use actual product terms and separately assess insurer strength, guarantees, tax and liquidity.
Every field below changes the result. They are listed exactly as the form asks for them.
| Field | Type | What it controls |
|---|---|---|
| Purchase / annuity start date | Date | |
| Purchase price | Number | |
| Annual pension in year 1 | Number | |
| Annual pension escalation (%) | Number | |
| Inflation assumption (%) | Number | |
| Return of purchase price at horizon / death scenario | Number | |
| Survival / evaluation horizon (years) | Number |
XIRR uses the entered purchase/start date for the initial outflow and places annual pension/return-of-purchase-price cash flows on exact calendar anniversaries of that date; real pension divides nominal pension by cumulative inflation.
The engine validates required values before calculating and rejects impossible combinations instead of converting them to zero silently. Dates, thresholds and category switches that drive the result remain visible to the user.
The logic on this page is built from the instrument(s) below. Where a rule did not clearly cover a scenario, that scenario is excluded rather than estimated.
The most common error in regulated calculations is not arithmetic; it is putting the facts into the wrong legal or product category. Check the transaction, entity, holding, policy or taxpayer classification before relying on the number.
Keep statements, acknowledgements, invoices, policy schedules, complaint IDs, tax workings or orders that support the inputs. A number without an evidence trail is difficult to defend in a complaint, return, claim or review.
Rules can change. This page records a source-check date, not a fabricated professional review date. If the event belongs to an older period, confirm that the rule version used here applies to that period.
Because the number of pension payments received depends on how long the annuity is evaluated.
It is a user-entered terminal cash flow at the selected horizon; use it only for an option that actually provides it.
The calculator uses your entered cash-flow assumption; confirm the product guarantee/terms.
No. It is a simple nominal purchase-price/pension ratio and ignores time value, inflation and terminal benefits.
Run each with its actual terms and compare XIRR, real pension, liquidity and guarantees.
Source links below are the authority trail used to design the current rule logic. They remain more important than a generic secondary explainer.
Source checked: 14 August 2026. This denotes source verification for the package, not CA/legal review or approval of the individual case.
These cover adjacent decisions. Each owns a different question, so use the one that matches your actual event.
This calculator is published for general information and educational purposes only. It is not legal, tax, accounting or investment advice, is not personalised to your circumstances, and is not a substitute for reading the governing instrument or taking professional advice on your facts. Finin2min records a source-check date, which denotes verification of the authority trail and not a professional review or approval of any individual case.
Scope: Computes interest on delayed GST tax payment under Section 50 of the CGST Act.
Review status: reviewed and approved by CA Nikhil Gupta on 19 July 2026.
Background, worked examples and the rules behind these numbers.