National Pension System & Scheme Calculator

Currency

Current Age

Retirement Age

Monthly Contribution

Expected Annual Return (%)

Annuity Rate (%) — Expected return on annuity portion

Annuity % of Corpus at Retirement — Min 40% as per NPS rules

About the NPS Calculator

The NPS (National Pension System) Calculator estimates the retirement corpus, lump sum withdrawal, and monthly pension you can expect based on your monthly contributions and investment horizon. It applies the standard NPS accumulation formula (SIP future value) and annuity conversion rules — including the mandatory 40% annuity requirement — so you get a realistic retirement income projection. This tool is essential for salaried employees, self-employed individuals, and NRIs who want to build a structured, tax-efficient retirement fund under India's government-backed NPS scheme.

How to Use

Enter your Current Age and planned Retirement Age (NPS matures at 60).
Enter your Monthly Contribution to NPS Tier 1.
Set the Expected Annual Return (historical NPS equity returns: 10–12%; debt: 7–8%) and Annuity Rate.
Adjust the Annuity % (minimum 40% as per NPS rules) and click Calculate.

Formula / Methodology

Corpus = C × [(1+r)^n − 1] ÷ r × (1+r)

Where:
  C = Monthly contribution
  r = Monthly return rate (Annual % ÷ 12 ÷ 100)
  n = Total months to retirement

Annuity Corpus = Corpus × Annuity%
Lump Sum      = Corpus × (1 − Annuity%)
Monthly Pension = Annuity Corpus × Annuity Rate ÷ 12

NPS Tier 1 offers tax benefits under Sections 80CCD(1) up to ₹1.5 L, and an additional ₹50,000 under 80CCD(1B). Equity allocation (up to 75%) in the Active choice can significantly boost corpus over long horizons.

Understanding Your Results

Total Corpus at 60 The projected accumulated NPS fund at your retirement age. This is the pool from which your lump sum and annuity are carved out. Starting early and increasing contributions with every salary hike dramatically grows this figure.

Monthly Pension Estimated monthly income from the annuity portion of your corpus. The pension amount depends on the annuity rate offered by your chosen insurance company and the proportion of corpus used for annuity purchase.

Lump Sum The tax-free one-time withdrawal at retirement, capped at 60% of the total corpus as per NPS rules. This can be used to clear remaining liabilities, fund major expenses, or invest in other instruments for additional income.

Important Note

NPS Tier 1 has a lock-in until age 60 with limited partial withdrawal options. The mandatory 40% annuity purchase means a portion of your corpus is committed to a fixed pension for life. Tier 2 is a voluntary savings account with no lock-in but no additional tax benefits. Always compare the annuity rates of different PFRDA-registered insurance companies at retirement to maximise your monthly pension income.

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