What is an NPS Calculator?
The National Pension System (NPS) is a government-backed, market-linked retirement scheme regulated by PFRDA. You contribute regularly until retirement; at exit, part of the corpus can be withdrawn and part buys an annuity that pays a pension.
This calculator estimates your NPS corpus at 60, the lump sum you could withdraw and the monthly pension from the annuity.
How it helps you
- Estimate your NPS corpus from your monthly contribution.
- See the split between lump sum and annuity.
- Estimate the monthly pension at an expected annuity rate.
How it is calculated
Corpus = P × [ ((1 + i)ⁿ − 1) ÷ i ] × (1 + i); Pension = Corpus × a% × annuity rate ÷ 12
- P
- Monthly contribution
- i
- Monthly rate = expected yearly return ÷ 12 ÷ 100
- n
- Months until age 60
- a%
- Share of the corpus used to buy an annuity
You are 30 and contribute ₹10,000 a month until 60, expect a 10% return, use 40% for an annuity at 6% a year.
- 1Total contributed = ₹10,000 × 360 = ₹36,00,000
- 2Corpus at 60 ≈ ₹2,27,93,253
- 3Annuity amount = 40% ≈ ₹91,17,301; lump sum ≈ ₹1,36,75,952
Estimated monthly pension ≈ ₹45,587.
How to use the NPS Calculator
- 1Enter your monthly contribution and current age.
- 2Set the expected return and the share used for the annuity.
- 3Set the expected annuity rate.
- 4Read the corpus, lump sum and monthly pension.
Frequently asked questions
How much of the corpus must buy an annuity?
PFRDA sets the minimum annuity share and the withdrawal rules, and these have been revised over time. The calculator lets you choose the share; check the current rules before planning.
Is the annuity rate fixed?
The rate depends on the annuity provider, the option chosen and rates at the time you buy it. Use a conservative estimate.
Are NPS returns guaranteed?
No. NPS is market-linked; returns depend on your asset allocation and fund manager performance.
Does NPS offer tax benefits?
NPS contributions can offer tax deductions under specific sections, depending on the tax regime you choose. Check the current rules for your situation.