Skip to content
Finance Calc Kit
Retirement

National Pension Scheme Calculator

Estimate your retirement corpus and monthly pension under India National Pension System (NPS) based on your monthly contributions, age, and expected returns.

Investment details

₹

Retirement age is fixed at 60

%
%

PFRDA rules require at least 40% of the corpus to buy an annuity

Projected retirement corpus

₹1,13,02,440

After 30 years (age 30 to 60)

Lump sum withdrawal

₹67,81,464

60% of corpus

Estimated monthly pension

₹22,605

6% annuity yield

Total invested

₹18,00,000

Wealth gain

₹95,02,440

Annuity corpus (40%)

₹45,20,976

Corpus composition at retirement

Retirement corpus₹1,13,02,440
  • Total invested₹18,00,00015.9%
  • Wealth gain₹95,02,44084.1%
Investing ₹5,000 monthly from age 30 to 60 at 10% annual return builds a corpus of ₹1,13,02,440. At retirement, 40% funds an annuity with an estimated monthly pension of ₹22,605.
Report tool

How India's National Pension System works

The National Pension System (NPS) is a voluntary, market-linked retirement scheme regulated by PFRDA for Indian citizens aged 18 to 60. Subscribers invest regularly in a mix of equity, corporate bonds, and government securities. At retirement age 60, part of the corpus can be withdrawn as a lump sum while at least 40% must be used to buy an annuity that pays a monthly pension.

Model monthly SIP growth with this calculator, then compare required contributions for a target corpus using the goal SIP calculator or review guaranteed pension options with the Atal Pension Yojana calculator.

NPS corpus formula

This calculator projects the future value of equal monthly contributions compounded at your expected annual return until age 60:

FV=P×(1+r12)n−1r12FV = P \times \frac{\left(1 + \frac{r}{12}\right)^n - 1}{\frac{r}{12}}

Where P is the monthly contribution, r is the annual return as a decimal, and n is the number of months until retirement. The annuity corpus is the chosen annuity percentage of FV, and the estimated monthly pension uses a 6% annual annuity payout rate divided across 12 months.

Worked example: ₹5,000 monthly from age 30

A 30-year-old contributing ₹5,000 per month for 30 years invests ₹18,00,000 in total. At a 10% annual return, the projected corpus is about ₹1,13,02,440. With a 40% annuity mandate, roughly ₹45,20,976 funds the annuity and ₹67,81,464 remains as lump sum. A 6% annuity yield on the annuity corpus implies an estimated monthly pension near ₹22,605.

Withdrawal rules at retirement

Under current PFRDA exit norms, subscribers must use at least 40% of the accumulated corpus to purchase an annuity. Up to the remaining balance may be withdrawn as a lump sum, subject to product and tax rules in force at retirement. Actual annuity quotes depend on the provider, age, and market rates when you exit.

Frequently asked questions

What is the minimum NPS contribution?
Tier I NPS accounts generally require at least ₹500 per contribution and ₹1,000 in total contributions per financial year. Tier II accounts have separate minimums. Check current PFRDA circulars before investing.
Can I withdraw the entire NPS corpus at age 60?
No. At least 40% of the accumulated corpus must be used to buy an annuity that provides a regular pension. The remaining amount may be taken as a lump sum under prevailing exit rules.
What tax benefits does NPS offer?
Employee and self-employed contributions may qualify for deductions under Section 80CCD(1) within the overall Section 80C limit of ₹1.5 lakh, plus an additional Section 80CCD(1B) deduction of up to ₹50,000 in many cases. Rules vary by subscriber type.
Why does the calculator use a 6% annuity yield?
The 6% figure is an illustrative annuity payout rate to estimate monthly pension from the annuity corpus. Real annuity rates depend on the provider and market conditions at retirement.
How is NPS different from EPF or APY?
NPS is market-linked with flexible asset allocation. EPF offers a declared interest rate with employer matching in many salary structures. APY provides a defined minimum pension for eligible subscribers with fixed contribution tiers.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.