NPS Calculator
The National Pension System builds a retirement corpus from your monthly contributions. Enter your plan to see the corpus, the lump sum you can take out and the pension an annuity could pay.
Results
Corpus at retirement
₹2,26,04,879
- Lump sum you can withdraw
- ₹1,35,62,928
- Amount used to buy an annuity
- ₹90,41,952
- Estimated monthly pension
- ₹45,209.76
- Total invested
- ₹36,00,000
- Estimated growth
- ₹1,90,04,879
Investing ₹10,000.00 a month in NPS from age 30 to 60 could build ₹2,26,04,879.25. Taking 40% as an annuity at 6% gives about ₹45,209.76 a month, plus a lump sum of ₹1,35,62,927.55.
At retirement
- Lump sum₹1,35,62,928 (60.0%)
- Used to buy an annuity₹90,41,952 (40.0%)
Show the calculation steps
- Monthly return i = 10% ÷ 12; months n = 360.
- Corpus = current balance × (1 + i)^n + monthly × ((1 + i)^n − 1) ÷ i = ₹2,26,04,879.25.
- Annuity purchase = 40% of the corpus = ₹90,41,951.70; lump sum = ₹1,35,62,927.55.
- Monthly pension = annuity amount × annuity rate ÷ 12 = ₹45,209.76.
- Rules on the minimum annuity share and taxation of withdrawals change; the default share of 40% is only an example. The pension assumes a level, non-increasing annuity.
How NPS pays out
At retirement you use a required minimum share of the corpus to buy an annuity, which pays a regular pension, and you can withdraw the rest as a lump sum. Rules on these shares and on taxation have changed over time.
Estimate, not promise
NPS returns depend on the fund mix you choose and on markets, and annuity rates depend on the insurer. The results here are illustrations based on the values you enter.
Formula
Corpus = Current × (1 + i)^n + Monthly × ((1 + i)^n − 1) ÷ i
Annuity amount = Corpus × annuity share
Monthly pension = Annuity amount × annuity rate ÷ 12
Where:
- i
- = Monthly return
- n
- = Months until retirement
Example calculation
₹10,000 a month from age 30 to 60 at 10%
Inputs
- Monthly Contribution
- ₹10,000
- Current NPS Balance
- ₹0
- Current Age
- 30 years
- Retirement Age
- 60 years
- Expected Annual Return
- 10 %
- Share Used to Buy an Annuity
- 40 %
- Annuity Rate
- 6 %
Result
- Corpus at retirement
- ₹2,26,04,879
- Lump sum you can withdraw
- ₹1,35,62,928
- Amount used to buy an annuity
- ₹90,41,952
- Estimated monthly pension
- ₹45,209.76
- Total invested
- ₹36,00,000
- Estimated growth
- ₹1,90,04,879
Step-by-step
- Monthly return i = 10% ÷ 12; months n = 360.
- Corpus = current balance × (1 + i)^n + monthly × ((1 + i)^n − 1) ÷ i = ₹2,26,04,879.25.
- Annuity purchase = 40% of the corpus = ₹90,41,951.70; lump sum = ₹1,35,62,927.55.
- Monthly pension = annuity amount × annuity rate ÷ 12 = ₹45,209.76.
Important notes
- Assumes contributions at the end of each month and a level annuity with no increase. Tax on the annuity is not included.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How much of the NPS corpus must buy an annuity?
A minimum share, commonly 40%, must be used to buy an annuity. Check the current rules.
What return should I assume?
NPS returns depend on your asset mix. Use a cautious estimate and try a few values.
Is the NPS pension taxable?
Annuity income is taxable as income. Rules on the lump sum change; confirm the current position.
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