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NPS Calculator
Estimate the National Pension System corpus at retirement from a monthly contribution, your age, an assumed return and the share used to purchase an annuity, along with the lump sum and the monthly pension that share could give. Rules on the annuity share and on withdrawals are set by PFRDA and have changed, so the share is an input here rather than an assumption.
Illustrative only. Everything is calculated in your browser and nothing you type is sent anywhere. Not investment, tax or legal advice.
How the nps calculator works
The corpus is the future value of equal monthly contributions at the start of each month: C × [((1 + m)n − 1) ÷ m] × (1 + m), where m is the assumed return divided by 12 and n the number of months to retirement. The share you enter is set aside to purchase an annuity, and the monthly pension is that amount times the annuity rate, divided by 12. The rest is the lump sum.
The rules on how much of an NPS corpus must go into an annuity, and how much can be withdrawn, are set by PFRDA and have changed over time, so this page does not assume them: enter the share that applies to you. Returns on NPS are not guaranteed, employer contributions and taxes are not modelled.
Worked example
Contributing ₹5,000 a month from age 30 to 60 at an assumed 10% a year means ₹18,00,000 contributed and an estimated corpus of ₹1,13,96,627. If 40% purchases an annuity at an assumed 6%, ₹45,58,651 goes into it for a monthly pension of about ₹22,793, and the lump sum is ₹68,37,976.
Frequently asked questions
Are NPS returns guaranteed?
No. NPS invests in market-linked assets, so the corpus can be higher or lower than any assumed return.
What share of the corpus must purchase an annuity?
It is set by PFRDA and can differ by type of subscriber and over time. Check the current PFRDA rules and enter the share that applies to you.
Does this include employer contributions or tax benefits?
No. It uses only the monthly amount you enter and ignores taxes.
What annuity rate should I use?
It depends on the annuity provider and plan at the time you retire. Try a few values to see how much the pension changes.
Related
Educational tool, not investment advice. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser. Results depend on the numbers you enter and on assumptions stated above.