How the NPS Calculator Works
Enter your current age, planned retirement age, monthly contribution and the expected annual return on your NPS investments (which depends on your chosen mix of equity, corporate debt and government bond funds).
The calculator projects your monthly contributions forward using compound growth to estimate your total corpus at retirement, clearly separating your own contributions from the estimated investment growth.
At retirement, current NPS rules require you to use at least 40% of the corpus to purchase an annuity (a regular pension); the rest can typically be withdrawn as a lump sum. Adjust the annuity percentage and assumed annuity rate to see the effect on your estimated monthly pension.
Formula Used
Each month, the corpus grows as your contribution is added and compounded:
Corpus = (Corpus + Monthly Contribution) × (1 + r/12), repeated monthly- rExpected annual return (as a decimal)
- Annuity CorpusCorpus × Annuity %
- Monthly Pension (est.)(Annuity Corpus × Assumed Annuity Rate) ÷ 12
Example Calculation
A 30-year-old contributing to NPS until age 60.
- Current Age30
- Retirement Age60
- Monthly Contribution₹5,000
- Expected Return10% p.a.
- ResultEstimated Corpus ≈ ₹1.14 crore (Contributions ≈ ₹18,00,000, Growth ≈ ₹96 lakh)
Important Assumptions
- Returns on NPS are market-linked and not guaranteed — the expected return you enter is an assumption, not a promise of actual performance, which will vary based on your chosen fund mix and market conditions.
- This calculator assumes a constant monthly contribution and constant expected return throughout the investment period, which real-world contributions and markets rarely follow exactly.
- Current NPS rules require a minimum annuitization of 40% of the corpus at retirement (varies with corpus size and withdrawal rules, which can change); the estimated monthly pension also depends on the annuity rate offered by the insurance provider at the time, which is not guaranteed.
- This calculator does not account for NPS-related tax benefits, fund management charges, or partial withdrawal rules, all of which can affect your actual outcome.