Quick guide
How to use this calculator
- Enter the balances, contributions, income, costs, ages, plan terms, and assumptions from the scenario you want to test.
- Keep currencies, periods, and nominal-versus-real rates consistent; compare more than one plausible scenario where outcomes are uncertain.
- Use the companion results and limits to understand funding gaps, timing trade-offs, and which assumptions drive the result.
Calculation method
Calculation method
Pension present value = present value of monthly payments through the entered horizon; break-even months = lump sum ÷ monthly pension before discounting.
Deterministic calculations use exact fixed-decimal arithmetic. The explicitly probabilistic success tool uses a reproducible seeded simulation and discloses its model.
Worked example
Worked example
A 300,000 lump sum can be compared with 2,000 monthly for 20 years using an entered discount rate and pension growth rate.
Pension present value = present value of monthly payments through the entered horizon; break-even months = lump sum ÷ monthly pension before discounting.
Supported inputs
Precision and limits
Planning scope
This valuation does not decide which option is better. Longevity, survivor rights, inflation protection, plan solvency, investment risk, guarantees, fees, and legal protections can dominate the arithmetic comparison.
Payment timing conventions
Unless a timing selector says otherwise, recurring accumulation contributions are applied at month-end. Bridge withdrawals are valued at the beginning of each year. Pension lump-sum comparisons value pension payments at month-end. Withdrawal projections apply the return for a period before that period's withdrawal.
Return and inflation assumptions
Investment returns, inflation, education costs, earnings, healthcare costs, longevity, and plan outcomes are uncertain. Entered constant rates and simulated distributions are scenarios rather than forecasts.
No tax or statutory calculations
At the owner's direction, these calculators do not calculate tax, required distributions, government-benefit claiming, contribution limits, early-withdrawal penalties, education tax credits, or country-specific account rules.
Decision boundary
Results do not recommend a pension election, investment, withdrawal strategy, school, loan, retirement date, healthcare plan, or employment decision. Confirm plan terms and consequential choices with the relevant administrator or qualified professional.
Precision and privacy
Plain decimals accept up to 30 digits and 12 decimal places. Calculations remain in this browser and raw entered values are not submitted to 365CALCS.COM.
Continue calculating