FINBIZTOOLS
NPS Calculator
Estimate a retirement corpus, annuity allocation and monthly pension.
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 it works
Enter your current and planned retirement ages, monthly contribution, expected return, intended annuity allocation and expected annuity payout rate. The tool projects savings and divides the final corpus into the selected lump sum and annuity purchase amounts.
Methodology
Each month, corpus = (previous corpus + contribution) × (1 + nominal annual return / 1200). Annuity allocation = corpus × allocation percentage. Lump sum = corpus − annuity allocation. Estimated monthly pension = annuity allocation × assumed annual annuity payout rate / 12. Pension is an illustrative payout estimate, not a compound-growth calculation.
Example
If your projected corpus were ₹50,00,000 and you chose 40% for an annuity, ₹20,00,000 would be allocated to it and ₹30,00,000 shown as a pre-tax lump sum. At an assumed 6% annual annuity payout rate, the monthly pension illustration is ₹10,000 before tax.
Allocation and exit assumptions
The 40% default is editable and is not presented as a universal mandatory allocation. Exit requirements vary by sector, exit circumstances, corpus and prevailing regulations. The calculator does not determine eligibility, legal withdrawal limits or tax exemption. Actual annuity products depend on age, joint-life options, return of purchase price and provider pricing.
Official reference
Review the PFRDA NPS All Citizen Model guidance and regulations applicable to your sector. Returns, annuity rates and monthly pension are projections; fees, inflation and taxes are excluded.
Frequently asked questions
Is 40% annuity allocation compulsory for everyone?
No. It is only the editable illustration used here. Applicable exit rules depend on your circumstances.
Is the pension amount guaranteed?
No. The amount depends on the actual corpus and annuity product and price available when purchased.
Are the lump sum and pension tax-free?
This calculator does not determine tax treatment. Both outputs are shown before any applicable tax.
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Disclaimer
This calculator provides an estimate based on the assumptions entered and does not guarantee investment returns. Results are informational, not financial, lending, tax or legal advice. Verify important decisions with a qualified professional. See our Disclaimer.