National Pension System (NPS) Calculator
Calculate National Pension System corpus and annuity
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Working out how to calculate National Pension System corpus and annuity is easier with National Pension System (NPS) Calculator, which answers as you type. Just enter Current Age, Monthly Contribution (₹) and Expected Return (%); National Pension System (NPS) updates the result as you type. In National Pension System (NPS) the working sits beside the answer. Anyone comparing options in Regional can use National Pension System (NPS) to compare scenarios. No sign-up is needed for National Pension System (NPS). The math runs on your device. National Pension System (NPS) sits in the Regional section next to free online national pension system (nps) calculator and national pension system. National Pension System (NPS) stays bookmarked for next time.
What the defaults build
₹5,000 a month from age 30 to 60 at an assumed 10% return produces a corpus of about ₹1,13,96,626 — roughly ₹1.14 crore.
At retirement, 40% must buy an annuity and the remaining 60% can be withdrawn as a lump sum. The annuity rate then decides the pension, not the corpus alone.
How the corpus is built
Thirty years of monthly contributions, each compounding until retirement — an annuity-due, because the contribution is made at the start of each month:
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i), with i the monthly rate (10%/12) and n = 360 months.
Worked example
Contribution ₹5,000/month
Years to retirement 60 − 30 = 30
Assumed return 10% → corpus ≈ ₹1,13,96,626
Total contributed: ₹5,000 × 360 = ₹18,00,000
The gap between ₹18 lakh contributed and ₹1.14 crore accumulated is compounding — about 84% of the final corpus is return, not savings.
Lump sum versus annuity
With a 40% annuity requirement: 60% is about ₹68.4 lakh as a lump sum, and 40% — about ₹45.6 lakh — buys the annuity. At a 6% annuity rate that produces roughly ₹22,800 a month of pension, before tax.
What moves the result
- Return. A 2-point swing in the assumed return changes the corpus by roughly 30% over 30 years — the biggest lever by far.
- Starting age. Starting at 40 instead of 30 cuts the accumulation period to 20 years and roughly halves the corpus at the same contribution.
- Contribution step-ups. Raising the monthly amount with salary is more effective than chasing a higher return.
- Annuity rate at retirement. This is unknown today and depends on prevailing interest rates when you buy.
What this does not model
Tax treatment, the choice between Active and Auto choice allocation, fund management charges of roughly 0.01–0.09%, and the rules on withdrawal before 60 are all outside the calculation.
Frequently Asked Questions
Why is the corpus ₹1.14 crore when I only contribute ₹18 lakh?
Because each contribution compounds until retirement. Over 30 years at 10%, the growth is roughly six times the amount contributed — about 84% of the final figure is return.
How much pension does that buy?
With 40% annuitised — about ₹45.6 lakh — and a 6% annuity rate, roughly ₹22,800 a month before tax. The actual rate depends on market conditions at retirement.
Can I withdraw the whole corpus?
No. At least 40% must be used to buy an annuity. The remaining 60% can be withdrawn as a lump sum, and the tax treatment of that portion has changed over time, so check the rules in force at retirement.
What return should I assume?
10% is a common planning assumption for an equity-heavy NPS allocation. It is not guaranteed — a 12% assumption on the same contributions produces a corpus roughly 30% larger.
Does starting later matter that much?
Yes. Starting at 40 gives 20 years instead of 30, and the corpus falls to roughly half at the same monthly contribution, because the early years are the ones that compound the longest.
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