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Pension Commutation Calculator
Result
Chart
Show formula & working
Commuted value = Monthly pension commuted × 12 × Commutation factor
Details
How this works
Commuting gives up part of the monthly pension for a lumpsum now. The factor converts a year's pension into its present value at your age.
The break-even shows how many years of the lost pension the lumpsum equals, before interest.
Frequently asked questions
Is the commuted pension taxable?
Treatment differs for government and non-government employees and depends on whether gratuity is received; check the current tax rules.
Where do I find the factor?
In your pension scheme's commutation table, by age next birthday.