About the NPS Calculator
What is the NPS Calculator?
The National Pension System (NPS) is a low-cost, market-linked retirement scheme regulated by PFRDA. Your contributions are invested in a mix of equity, corporate bonds and government securities until you exit, usually at 60.
At exit, up to 60% of the corpus can be withdrawn tax-free and at least 40% must be used to buy an annuity that pays you a monthly pension. Enter your monthly contribution, age, exit age, expected return, annuity share and annuity rate to see the corpus, the lump sum and the estimated pension.
How to use the NPS Calculator
- Monthly Contribution (₹) (sample: 5,000)
- Current Age (sample: 30)
- Age at Exit (sample: 60)
- Expected Return (% per year) (sample: 10)
- Share Used to Buy an Annuity (%) — at least 40%; you may choose more. (sample: 40)
- Annuity Rate (% per year) — the yearly payout rate offered by the annuity provider. (sample: 6)
- Yearly Increase in Contribution (%) (sample: 0)
- Press Calculate NPS Pension (results also refresh as you type). The result card shows the Estimated Monthly Pension, along with Total NPS corpus, Lump sum withdrawal (tax-free), Amount used for annuity and Total contributed.
Formula used
Monthly pension = Corpus × Annuity share × Annuity rate ÷ 12
- Corpus = monthly contributions compounded at the expected return (with any yearly increase)
- Lump sum = Corpus × (1 − annuity share), tax-free up to 60%
Annuity rates depend on the insurer and annuity type chosen at retirement; 5.5–7% is typical for life annuities.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Monthly Contribution (₹) | 5,000 |
| Current Age | 30 |
| Age at Exit | 60 |
| Expected Return (% per year) | 10 |
| Share Used to Buy an Annuity (%) | 40 |
| Annuity Rate (% per year) | 6 |
| Yearly Increase in Contribution (%) | 0 |
| Result | Value |
|---|---|
| Estimated Monthly Pension | ₹22,793 |
| Total NPS corpus | ₹1,13,96,627 |
| Lump sum withdrawal (tax-free) | ₹68,37,976 |
| Amount used for annuity | ₹45,58,651 |
| Total contributed | ₹18,00,000 |
Tips for using the NPS Calculator
- Under the old tax regime, an extra ₹50,000 deduction is available under Section 80CCD(1B), over and above 80C.
- Employer contributions of up to 14% of basic salary are deductible under Section 80CCD(2) in the new regime.
- Choose the Auto Choice (lifecycle) option if you want equity exposure to reduce automatically as you age.