Pension Calculator

About this calculator

A traditional defined-benefit pension pays a retiree a set amount based on a formula rather than on how an individual investment account performed. The typical formula is: annual pension = years of service × final average salary × a multiplier (an accrual rate the pension plan sets, often somewhere around one to two and a half percent per year of service, though this varies by plan and employer).

Because all three inputs — years worked, final salary, and the plan's multiplier — move the result, small differences in any one of them (working a few extra years, a late-career raise) can noticeably change the eventual benefit. This calculator takes your years of service, final salary, and the plan's multiplier and estimates the resulting monthly pension, which is useful for retirement planning, comparing job offers with different pension plans, or checking a benefits statement.