Retirement & Planning

NPS Calculator

Model National Pension System corpus, annuity split, and retirement outcomes.

About the NPS calculator

The National Pension System (NPS) is a long-term retirement account where regular contributions compound until exit. This calculator projects your Tier I corpus using a monthly contribution, expected return, current age, retirement age, and annuity selection.

Use it to understand the balance between contribution discipline, investment return, and the annuity split that may shape your retirement income. It is especially useful for salaried professionals, self-employed investors, and families planning a retirement corpus alongside EPF, PPF, mutual funds, and other assets.

The projection is an estimate. It assumes a constant return and applies a simplified non-government NPS Tier I exit model, including full withdrawal bands and annuity floors used by the calculator. Actual NPS returns, annuity rates, tax treatment, and exit options can differ by regulation and provider.

How do I use the NPS calculator?

  1. Enter your monthly contribution: Add the amount you plan to contribute to NPS every month. A steady monthly contribution is treated like a SIP into the selected NPS investment mix.
  2. Set the expected return: Enter the annual return you want to assume. NPS returns are market-linked, so use a conservative long-term assumption rather than a recent one-year return.
  3. Confirm your current and retirement age: The calculator uses the gap between these ages to determine the total number of monthly contributions and whether the exit is modeled as normal retirement or premature exit.
  4. Choose the annuity percentage: Select the share of corpus used to buy an annuity. The calculator applies the relevant minimum annuity floor when the modeled rule band requires it.
  5. Review corpus, lump sum, and pension: Compare the total invested amount, projected retirement corpus, lump sum, annuity corpus, and estimated monthly pension based on a 6% annuity yield assumption.

How is the NPS corpus calculated?

FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r)

The applied annuity percentage may be higher than the percentage you enter if the modeled non-government Tier I exit rule requires a minimum annuity purchase.