How to use the NPS Calculator
- Enter the amount you will contribute every month.
- Enter the yearly return you expect on your NPS investments.
- Enter your age today and the age at which you plan to retire.
- Choose the share of the corpus you will use to buy an annuity (20% is the current minimum for most non-government subscribers on a normal exit) and enter the annuity rate, then read the corpus, lump sum and monthly pension.
Formula used
Corpus = contribution × ((1 + j)ⁿ − 1) ÷ j × (1 + j), where j is the monthly return and n the number of months. Lump sum = corpus × (1 − annuity share). Monthly pension = corpus × annuity share × annuity rate ÷ 12.
Worked example
Here is the NPS Calculator worked through with the example values shown above, so you can check each step by hand.
| Inputs | |
|---|---|
| Monthly contribution | ₹5,000 |
| Expected return (per year) | 10 % |
| Your age today | 30 years |
| Retirement age | 60 years |
| Share of corpus used to buy an annuity | 20% (minimum for most non-government subscribers) |
| Annuity rate (per year) | 6 % |
| Result | |
| Total corpus at retirement | ₹1,13,96,627 |
| Total contributions | ₹18,00,000 |
| Lump sum you can withdraw | ₹91,17,301 |
| Estimated monthly pension | ₹11,397 |
Corpus and pension by monthly contribution
With the default ages, return and annuity inputs.
| Monthly contribution | Total corpus at retirement | Estimated monthly pension |
|---|---|---|
| ₹2,000 | ₹45,58,651 | ₹4,559 |
| ₹5,000 | ₹1,13,96,627 | ₹11,397 |
| ₹10,000 | ₹2,27,93,253 | ₹22,793 |
| ₹15,000 | ₹3,41,89,880 | ₹34,190 |
| ₹25,000 | ₹5,69,83,133 | ₹56,983 |
How the NPS corpus is estimated
The corpus is the future value of your monthly contributions. With ₹5,000 a month at 10% for 30 years (age 30 to 60), you contribute ₹18,00,000 in total and the estimated corpus is ₹1,13,96,627. Most of that, about ₹95,96,627, comes from returns, and most of the returns come in the final years.
At retirement, part of the corpus must be used to buy an annuity from an insurer, which pays you a pension. The rest you can withdraw as a lump sum. With 20% in an annuity, the lump sum is ₹91,17,301, and an annuity rate of 6% gives a pension of about ₹11,397 a month on the annuity portion.
The effect of contribution and age
Contributions matter, but time matters more. At 10% and a retirement age of 60, ₹5,000 a month gives ₹1,13,96,627 when you start at 30. Starting at 40 gives ₹38,28,485, and starting at 25 gives ₹1,91,41,384.
Raising the contribution helps in proportion: ₹10,000 a month gives ₹2,27,93,253. The table below shows more combinations for the default ages.
Annuity share and pension
The more you put into an annuity, the higher the pension but the lower the lump sum. With a 20% annuity the pension is about ₹11,397 a month and the lump sum is ₹91,17,301. With 40% the pension is about ₹22,793 a month and the lump sum is ₹68,37,976. With 60% the pension is about ₹34,190 a month and the lump sum is ₹45,58,651.
Annuity rates depend on the insurer and on the product you choose, such as whether the pension continues to a spouse or returns the purchase price. Rates have usually been in the range of about 5% to 7%, but they vary, so treat 6% as an assumption.
Rules to check before you rely on this
NPS rules have been revised several times, and the regulator, PFRDA, publishes the current ones. In December 2025 PFRDA changed the exit rules for non-government subscribers: on a normal exit they can now withdraw up to 80% of the corpus as a lump sum, so the minimum amount that must buy an annuity is 20%, and a small corpus (₹8 lakh or less on normal exit, as reported) can be taken entirely as a lump sum. Rules for early exit differ and are stricter, and government subscribers follow their own rules.
The tax treatment of contributions and withdrawals, and the lump-sum limits, have also changed over the years, so check the current position before you rely on any figure. The calculator assumes a constant return and a constant contribution. Actual NPS returns depend on markets and on how you split money between asset classes. This is an estimate, not a promise, and not tax advice.
Frequently asked questions
What is NPS?
The National Pension System is a voluntary retirement savings scheme regulated by PFRDA. You contribute during your working years and receive a lump sum and a pension later.
How much of the NPS corpus must buy an annuity?
Since December 2025, non-government subscribers on a normal exit can withdraw up to 80% as a lump sum, so at least 20% must buy an annuity. Government subscribers and early exits follow different rules, so check the current PFRDA rules for your category.
Are NPS returns guaranteed?
No. They depend on markets and on the asset mix you choose.
Is the NPS pension taxable?
Annuity income is generally taxable as income, while the tax treatment of the lump sum has special rules. Check current tax law.
Can I withdraw before retirement?
Early exit and partial withdrawals are allowed only under specific conditions. Read the current scheme rules.
What return should I use?
Long-term NPS returns have varied with the asset mix, and the past does not guarantee the future. Try a few figures such as 8%, 10% and 12%.
This calculator gives estimates for information only. Actual figures from a bank, employer, tax authority or doctor may differ. It is not financial, tax, legal or medical advice.