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NPS Calculator

The National Pension System is India's portable, market-linked retirement scheme: you contribute monthly, choose a fund and asset mix, and at exit it buys a lifetime annuity. Discipline comes from the lock-in until 60; the fine print reserves at least 40% of the exit corpus for that annuity. This calculator projects the corpus, then splits it into the lump sum you may withdraw and the annuity's monthly pension.

Enter values

Tier-1 contribution — even ₹500 a month keeps the account active

NPS account runs until you exit, normally at 60

Depends on your active/auto choice and the fund's record

At least 40% of the corpus must buy an annuity

Annual pension rate an annuity provider offers today

Results update as you type.

Results

NPS corpus at retirement
₹2,26,04,879.25
Lump sum you can withdraw
₹1,35,62,927.55
Amount used to buy an annuity
₹90,41,951.70
Estimated monthly pension
₹45,209.76
056.5L1.1Cr1.7Cr2.3CrY1Y5Y9Y13Y17Y21Y25Y29
  • Corpus by year

How is the NPS calculated?

Enter your monthly Tier-1 contribution, current age, exit age, expected return, the annuity share of the corpus, and the annuity rate providers quote today. Each contribution compounds at a monthly rate and the calculator sums them to your exit corpus, then splits it into the withdrawable lump sum and the annuity purchase, converting the annuity into a monthly pension. The chart tracks corpus value at every year-end, showing how much of the final figure the last decade builds.

Formula

FV = C × ((1 + i)^n − 1) ÷ i

where:
C = monthly contribution (invested at each month's end)
i = monthly return = annual rate ÷ 12 ÷ 100
n = months to retirement

lump sum = corpus × (1 − annuity share)
monthly pension = corpus × annuity share × annuity rate ÷ 12

NPS requires at least 40% of the exit corpus to buy an annuity.

Example

Contribution: ₹10,000 a month · Age 30 → 60 (30 years, 360 instalments) · Return: 10% · Annuity: 40% at 6%
Monthly rate = 10 ÷ 12 ÷ 100 ≈ 0.00833
Corpus = 10,000 × ((1.00833)^360 − 1) ÷ 0.00833 ≈ ₹2,26,04,879
Lump sum (60%) ≈ ₹1,35,62,928 · Annuity purchase (40%) ≈ ₹90,41,952
Monthly pension = 90,41,952 × 6% ÷ 12 ≈ ₹45,210
After year one the same SIP is worth only about ₹1,25,656 — the corpus is built by the final decade, not the first.

Things to remember

NPS returns depend on fund performance and equity share, so treat these figures as projections, not promises. Annuity rates move with markets, so the pension shown reflects today's rates, not retirement day's. Exit and tax rules change — verify current terms with PFRDA.

Frequently Asked Questions

How is the NPS corpus calculated?

Each monthly contribution compounds at the monthly rate — annual return ÷ 12 — until retirement, and the calculator sums their future values with FV = C × ((1 + i)^n − 1) ÷ i. Contributions are assumed to land at each month's end, the convention PFRDA product pages also illustrate.

How much of my NPS corpus must become an annuity?

At least 40% of the exit corpus must buy an annuity under current NPS rules; you may annuitise up to 100% if you prefer a larger pension. The remaining portion can be withdrawn as a lump sum — a route current rules tax favourably after 60, though that treatment can evolve.

What pension does ₹90 lakh of annuity buy?

At an annuity rate near 6% a year, ₹90,41,952 buys roughly ₹45,210 a month for life. Annuity rates are quoted by insurers at the time of purchase and move with bond yields, so treat this as an order-of-magnitude figure and re-check rates as you approach 60.

Is NPS contribution eligible for tax deduction?

Under current rules, NPS Tier-1 contributions qualify under Section 80CCD, with the combined ceiling sitting inside the Section 80C limit plus an additional employer-contribution window under 80CCD(2). Limits and slabs change with each budget, so verify the current year's provisions before claiming.

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