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Calculation Machine

Pension Calculator

Defined benefit pension income.

Reviewed by James Whitfield · How we check our maths

Your values

ⓘ Live results

Results
Annual pension
$42,120.00
Monthly pension
$3,510.00
Replacement ratio
54%
Value after 10 years of COLA
$51,344.04
20-year total (with COLA)
$1,023,405.22

Quick answer

A defined benefit pension pays years of service × accrual rate × final average salary each year in retirement.

The formula

Pension = Years × Multiplier × Final salary

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Years of service30
  • Final average salary78000 $
  • Accrual multiplier1.8 %/yr
  • Annual COLA2 %

Result

  • Annual pension$42,120.00
  • Monthly pension$3,510.00
  • Replacement ratio54%
  • Value after 10 years of COLA$51,344.04
  • 20-year total (with COLA)$1,023,405.22

How to use the Pension Calculator

  1. 1Enter your total years of pensionable service.
  2. 2Enter final or final-average salary.
  3. 3Enter the scheme's accrual multiplier.

Frequently asked questions

What is a typical multiplier?

US public plans commonly use 1.5–2.5% per year of service.

Is a pension inflation-protected?

Some plans offer a COLA, many do not — check your scheme rules.

About this calculator