FINBIZTOOLS
NPS Calculator
Project a National Pension System (NPS) retirement corpus. Enter your age, retirement age, monthly contribution, expected return, the share you expect to put into an annuity and the annuity payout rate to see the estimated corpus, lump sum and monthly pension before tax.
Private by design · Inputs and downloads stay in your browser
All values are projections. The editable 40% annuity allocation is an illustration, not a universal minimum. Verify sector, exit type and current NPS rules. Pension and lump sum are before tax.
How to use the NPS Calculator
- Enter your current age and the age you plan to retire.
- Enter your monthly contribution.
- Enter the expected annual return as a percentage.
- Enter the share of the corpus you expect to use for an annuity. The default 40% is an editable illustration.
- Enter the expected annual annuity payout rate, then select Calculate.
What is NPS?
The National Pension System is a long-term retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Contributions build a corpus over your working life.
At exit, part of the corpus is generally used to buy an annuity that pays a regular pension, and the rest may be taken as a lump sum. The permitted split depends on the type of account and current regulations.
How the calculation works
NPS projection formula
Monthly return: r = annual return % ÷ 1200; months n = (retirement age − age) × 12
Each month: corpus = (corpus + contribution) × (1 + r)
Annuity amount = corpus × annuity allocation %
Lump sum = corpus − annuity amount
Monthly pension = annuity amount × annuity payout rate ÷ 12
- Contributions are made at the start of each month.
- The annuity allocation and payout rate are your own assumptions.
The return is treated as a constant nominal rate divided by 12. Pension and lump sum are shown before tax.
NPS calculation example
Age 30, retiring at 60, ₹5,000 a month, 10% assumed return, a 40% annuity allocation and a 6% annuity payout rate:
| Monthly contribution | ₹5,000 |
|---|---|
| Period | 30 years (360 months) |
| Expected annual return | 10% |
| Annuity allocation / payout rate | 40% / 6% |
| Total contribution | ₹18,00,000 |
|---|---|
| Estimated corpus | ₹1,13,96,626.62 |
| Annuity amount | ₹45,58,650.65 |
| Lump sum (before tax) | ₹68,37,975.97 |
| Monthly pension (before tax) | ₹22,793.25 |
These are projections from assumptions, not a quote from any annuity provider.
Assumptions and limitations
Assumptions
- A constant nominal return and start-of-month contributions with none missed.
- The 40% annuity allocation and the payout rate are editable illustrations, not requirements.
- No inflation adjustment.
Limitations and why results can differ
- Fund charges, taxes, inflation and annuity product features are not modelled.
- The calculator does not check eligibility or the exit rules for your sector or account type.
- Actual returns vary and can be negative. Check current regulations with PFRDA before planning.
Frequently asked questions
Is 40% a mandatory annuity share?
No. It is an editable illustration. The permitted withdrawal and annuity split depends on your account, sector and current rules.
Does the pension include tax?
No. Pension and lump sum are shown before tax.
Where does the monthly pension come from?
It is the annuity amount multiplied by the payout rate you enter and divided by 12.
Does the corpus grow after retirement age?
No. The projection stops at your retirement age.
Methodology
Inputs are validated: current age from 18 to 84, retirement age above current age up to 85, monthly contribution from 1 to 10,000,000, annual return from 0% to 50%, annuity allocation from 0% to 100% and annuity payout rate from 0% to 20%. Those limits were last reviewed on 15 September 2026.
The engine applies monthly add-contribution-then-grow steps until retirement, then splits the corpus by the annuity allocation and converts the annuity amount to a monthly pension using the payout rate you enter. No annuity product, tax or charge is modelled. Rounding is applied only for display. The calculation runs in your browser and inputs are not sent to a server.
Sources and references
Last reviewed:
Disclaimer
Results are estimates based on the assumptions you enter and do not guarantee future returns. This page is for information only and is not financial, investment or tax advice. Read the full Disclaimer.
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This tool is part of Investing and Saving.
A common order: set a savings goal, project growth with regular or lump-sum investing, then adjust for inflation.