NPS Calculator (National Pension System)
NPS Calculator (National Pension System)
What your National Pension System contributions could build by retirement, how much of it you could take as a lump sum, and the monthly pension the rest might buy — with every assumption in view.
NPS corpus and pension
$5,000 a month from 30 to 60 at an assumed 10%, 40% to an annuity paying 6%
Corpus, lump sum and pension
- P
- the monthly contribution, made at the start of each month
- i
- the expected yearly return ÷ 12 — an assumption, not a guarantee
- n
- the months until you exit
- B
- the balance you already have
- a
- the share of the corpus used to buy an annuity; the rest is the lump sum
Worked example
$5,000 a month from 30 to 60 at an assumed 10%, 40% to an annuity paying 6%
360 monthly contributions of 5,000 at 10% ÷ 12 a month: corpus $1,13,96,627
You contribute $18,00,000
Lump sum (60%): $68,37,976; annuity purchase (40%): $45,58,651
Pension = 45,58,651 × 6% ÷ 12 = $22,793 a month
In today's money at 4% inflation: $7,028 a month
5,000 a month from 30 to 60: corpus by assumed return
| Assumed return | Corpus | Monthly pension (40% at 6%) |
|---|---|---|
| 6% | $50,47,688 | $10,095 |
| 8% | $75,01,476 | $15,003 |
| 10% | $1,13,96,627 | $22,793 |
| 12% | $1,76,49,569 | $35,299 |
What this NPS estimate assumes
The National Pension System builds a retirement corpus from your contributions, invested in equity, corporate bonds and government securities by pension funds you choose. Its returns are market-linked: there is no guaranteed rate, and a good decade can be followed by a poor one. This page asks you for an expected return and holds it steady every year, which no market does, so try several figures. At an assumed 10%, $5,000 a month from 30 to 60 builds about $1,13,96,627; at 8% it is $75,01,476.
At exit, part of the corpus must buy an annuity — a pension for life from an insurer — and the rest can be taken as a lump sum. The PFRDA changed these rules in December 2025. A non-government subscriber must now use at least 20% of the corpus for an annuity, down from 40%, and can take up to 80% as a lump sum; government-sector subscribers must still use at least 40%. A corpus of ₹8 lakh or less can be taken in full, and between ₹8 lakh and ₹12 lakh up to ₹6 lakh can be taken as a lump sum with the rest paid out by systematic unit redemption or used for an annuity. You may stay invested until 85. Leaving before 60 is treated differently: most of the corpus must then go to an annuity.
The pension depends on the annuity rate, which the insurer sets when you buy, according to your age and the option you choose. The example uses 6% on 40% of the corpus: $22,793 a month. With the 20% minimum it would be $11,397 a month, and more would come as a lump sum. A pension from an annuity is usually level, so it loses buying power every year.
Thirty years of inflation changes the picture most. At 4% a year, $22,793 a month in 30 years buys what $7,028 buys today, and the corpus is worth $35,13,793 in today’s money. To see how big a corpus you need, use the retirement corpus calculator; for a guaranteed-return alternative, the PPF calculator; for an employee’s provident fund, the EPF calculator.
Tax: contributions, the lump sum and the annuity income each have their own treatment, which differs between the old and new regimes; the Income-tax Act, 2025 took effect on 1 April 2026, so check the current rules. This page takes no tax off. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How much of my NPS can I withdraw at 60?
Under the PFRDA rules of December 2025, a non-government subscriber can take up to 80% as a lump sum and must use at least 20% for an annuity; a government-sector subscriber must use at least 40%. A corpus of ₹8 lakh or less can be withdrawn in full.
Are NPS returns guaranteed?
No. They depend on the markets and your investment choice. The return on this page is your assumption.
How is the NPS pension worked out?
The annuity share of the corpus times the annuity rate, ÷ 12. In the example: $45,58,651 × 6% ÷ 12 = $22,793 a month.
What will 5,000 a month in NPS become in 30 years?
About $1,13,96,627 at an assumed 10% a year, from $18,00,000 contributed. At 8% it is about $75,01,476.
Related calculators
References
- Pension Fund Regulatory and Development Authority. PFRDA (Exits and Withdrawals under the National Pension System) (Amendment) Regulations, 2025, Gazette of India, 12 December 2025: at normal exit a non-government subscriber must use at least 20% of the accumulated pension wealth to buy an annuity and a government-sector subscriber at least 40%; a corpus up to ₹8 lakh may be withdrawn in full; between ₹8 lakh and ₹12 lakh up to ₹6 lakh may be taken as a lump sum and the rest by systematic unit redemption or annuity; subscribers may remain in NPS up to age 85.
- Pension Fund Regulatory and Development Authority. National Pension System — investment choices (active and auto choice across equity, corporate bond and government securities). NPS returns depend on the market value of the underlying investments and are not guaranteed.
- Brealey RA, Myers SC, Allen F. Principles of Corporate Finance. McGraw-Hill. Compound interest, the future value of an annuity due, and present values.
- Income-tax Act, 1961, replaced from 1 April 2026 by the Income-tax Act, 2025, which renumbers its provisions. Tax on small-savings interest and on NPS withdrawals depends on the current Act, your regime and your slab; this page states no rate.
- Central-bank inflation targets used as default inflation by currency: Reserve Bank of India (4% CPI, flexible inflation targeting framework); U.S. Federal Reserve (2% PCE); European Central Bank (2%); Bank of England (2% CPI); Bank of Canada (2%); Reserve Bank of Australia (2–3%); Bangko Sentral ng Pilipinas (3% ± 1). Actual inflation often runs above target.