NPS Calculator
Estimate National Pension System (NPS) retirement corpus, 60% tax-free lump sum withdrawal, and monthly annuity pension.
About the NPS Calculator
The National Pension System (NPS) Calculator models your retirement wealth creation under India's regulated pension program. Calculate how small, disciplined monthly contributions can build a multi-crore retirement nest egg that provides financial independence and guaranteed monthly pensions.
Mathematical Formula
Corpus FV = Monthly Contribution × [((1 + r)^n - 1) / r] × (1 + r)
Annuity Corpus = Total Corpus × Annuity%
Monthly Pension = (Annuity Corpus × Annuity Return%) / 12 Projects total retirement accumulation under the National Pension System (NPS Tier-1), factoring in compound market returns, the 60% tax-free lump sum withdrawal, and 40% mandatory annuity reinvestment.
Variables & Components
Worked Example: ₹10,000/month NPS from Age 30 to Age 60 at 10% CAGR
Suppose an individual starts investing ₹10,000 monthly in NPS at age 30 with a retirement horizon of 30 years (till age 60) expecting 10% CAGR and a 40% annuity reinvestment at 6% return.
Step-by-Step Calculation
- Total cumulative investment = 360 months × ₹10,000 = ₹36,00,000.
- At 10% annualized return, the retirement corpus accumulates to ₹2,27,93,642 (~₹2.28 Crore).
- Lump Sum withdrawal (60%, tax-free) = ₹1,36,76,185.
- Annuity corpus purchased (40%) = ₹91,17,457.
- Estimated monthly pension at 6% annuity rate = (₹91,17,457 × 0.06) / 12 = ₹45,587 per month for life.
How to Use This Calculator
Enter your proposed Monthly Contribution into NPS Tier-1.
Set your Current Age and intended Retirement Age (e.g. 60).
Choose your expected portfolio return rate based on your equity and debt asset mix.
Adjust the Annuity percentage (minimum 40%) to observe your lump sum payout vs lifetime monthly pension.