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NPS calculator

In India's National Pension System you contribute until retirement. Then part of the amount buys a pension and the rest can be taken as a lump sum.

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  • Formula shown
  • Runs on your device
  • Any currency
₹
Paid at the start of each month.
years
1 to 45 years.
% a year
An assumption, not a promise. It depends on the mix of equity and debt. 0% to 30%.
More assumptions 3
%
0% to 50%.
%
Part of the final amount buys an annuity; the rules set a minimum share, often 40%. Check the current rules.
% a year
The yearly rate the pension pays on the amount used. 0% to 20%.
Estimated monthly pension
₹26,758

Contributing ₹10,000 a month for 25 years at 10% could build about ₹1,33,78,903. Using 40% for a pension at 6% pays about ₹26,758 a month, with ₹80,27,342 paid as a lump sum.

At retirement, after 25 years
Total contributed₹30,00,000
Estimated growth₹1,03,78,903
Final amount₹1,33,78,903
Lump sum₹80,27,342
Used for the pension₹53,51,561
Monthly pension₹26,758
Then change the inputs to compare two options side by side.
Illustrative estimate. Assumes a steady return, contributions at the start of each month and a level annuity. Actual returns and annuity rates vary and are not guaranteed; charges and tax are not included. Check the current rules on withdrawals and annuities.

Value by year

037.5 lakh75 lakh1.13 crore1.5 crore0481216202425
ContributedEstimated growth
YearContributed so farValue
1₹1,20,000₹1,26,703
2₹2,40,000₹2,66,673
3₹3,60,000₹4,21,300
4₹4,80,000₹5,92,118
5₹6,00,000₹7,80,824
6₹7,20,000₹9,89,289
7₹8,40,000₹12,19,583
8₹9,60,000₹14,73,993
9₹10,80,000₹17,55,042
10₹12,00,000₹20,65,520
11₹13,20,000₹24,08,510
12₹14,40,000₹27,87,415
13₹15,60,000₹32,05,997
14₹16,80,000₹36,68,409
15₹18,00,000₹41,79,243
16₹19,20,000₹47,43,567
17₹20,40,000₹53,66,983
18₹21,60,000₹60,55,679
19₹22,80,000₹68,16,491
20₹24,00,000₹76,56,969
21₹25,20,000₹85,85,457
22₹26,40,000₹96,11,169
23₹27,60,000₹1,07,44,287
24₹28,80,000₹1,19,96,057
25₹30,00,000₹1,33,78,903

How it's calculated

Each month: V = (V + contribution) × (1 + r ÷ 12) Pension a month = V × annuity share × annuity rate ÷ 12 Lump sum = V × (1 − annuity share)

Contributions rise once a year by the increase you enter. At retirement, the annuity share of the final amount buys a pension paying the annuity rate.

Assumptions

  • A steady return; real returns depend on the investment mix and vary.
  • Contributions at the start of each month.
  • The annuity pays a level amount for life at the rate you enter.
  • Charges and tax are not included; withdrawal rules are set by the regulator and can change.

Worked example

Contributing 10,000 rupees a month for 25 years at 10% could build about 1,33,78,903 rupees. Using 40% for a pension at 6% pays about 26,758 rupees a month, with about 80,27,342 rupees as a lump sum.

Questions

How much must go into the annuity?

The rules set a minimum share of the final amount, often 40%, with exceptions for small amounts. Check the current rules and set the share.

What return should I use?

It depends on how much is in equity and debt. Try a cautious rate and a higher one to see the range.

Is the pension taxed?

Pension income is usually taxable. Tax is not included here.

Sources

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