NPS Calculator
Project your retirement corpus under the National Pension System, and estimate the monthly pension your annuity could generate.
Corpus at Retirement (Age 60)
Estimated pension: ₹22,793/month
At least 40% of your corpus must go toward an annuity purchase, which is what funds your monthly pension. The annuity rate you'll actually get is set by the insurer at the time of purchase — this calculator uses your assumed rate as an estimate only.
How NPS Works at Retirement
NPS accumulates like a long-term retirement SIP throughout your working years, but unlike PPF or EPF, you can't withdraw the full corpus as cash at maturity. At least 40% must go toward purchasing an annuity from an insurance company, which is what funds your pension for the rest of your life. This mandatory annuity structure is what makes NPS distinct — and is also its biggest trade-off, since annuity payout rates have historically been relatively modest compared to other long-term investment returns.
Disclaimer
This calculator uses assumed rates for both corpus growth and annuity payout — actual NPS returns depend on your chosen fund manager and asset allocation, and actual annuity rates are set by insurers at the time of purchase. Treat this as a rough planning tool, not a guarantee.
Frequently Asked Questions
How much of my NPS corpus can I withdraw as a lumpsum?
Up to 60% of your corpus can be withdrawn as a tax-free lumpsum at retirement. The remaining 40% (minimum, mandated by regulation) must be used to purchase an annuity, which generates your monthly pension.
What return rate should I assume for NPS?
NPS lets you choose between equity, corporate bond, and government bond allocations (within regulatory limits based on your age). Historical NPS equity-heavy scheme returns have generally ranged 9-12% annually over the long term, though this isn't guaranteed and varies by the fund manager and asset allocation you choose.
How is the monthly pension from NPS determined?
Your annuity corpus (the portion of NPS used to buy an annuity) is handed over to an insurance company, which pays you a monthly pension based on the prevailing annuity rate at the time of purchase — this rate isn't fixed by NPS itself and varies by insurer and annuity plan type.
Is NPS withdrawal taxable?
The lumpsum withdrawal (up to 60% of corpus) is tax-free. The annuity portion isn't taxed at purchase, but the monthly pension you receive from the annuity is taxed as regular income in the year you receive it.