NPS Calculator

How to use NPS Calculator

1. Enter your monthly contribution, an expected annual return, your current age and your planned retirement age (60 by default).
2. Optionally add a yearly increase in your contribution and any existing corpus.
3. Set the share of the corpus you expect to use for an annuity and the annuity rate. These are examples, so change them to match current rules and an actual quote.
4. Read the corpus, lump sum, annuity amount and estimated monthly pension, plus the year-wise growth table.

What the calculator does

The National Pension System style plan collects contributions during your working years, invests them, and at retirement lets you take part of the corpus as a lump sum while the rest buys an annuity that pays a regular pension. Here, contributions are assumed at the end of each month and the monthly rate is the annual rate divided by 12. After n months the corpus equals the existing corpus grown at that rate plus the future value of the contributions, which for a flat contribution C is C x ((1 + i)^n - 1) / i with i as the monthly rate.

The corpus is then split. The annuity corpus is the corpus multiplied by your annuity share, the lump sum is the remainder, and the estimated monthly pension is annuity corpus x annuity rate / 12. This simple model assumes the annuity pays only interest and does not return the purchase price.

Worked example

Contribute 5,000 a month for 30 years (age 30 to 60, so 360 months) at an assumed 10 percent a year. The total contributed is 1,800,000 and the corpus is 11,302,439.62. If 40 percent goes to an annuity, the annuity corpus is 4,520,975.85 and the lump sum is 6,781,463.77. At an assumed 6 percent annuity rate the estimated pension is 4,520,975.85 x 0.06 / 12 = 22,604.88 a month. Change the retirement age, the contribution or the return and the numbers move quickly, which shows how much starting early helps.

Tips and limits

Starting early is the most powerful lever because compounding needs time. A modest yearly increase in contributions also helps. Because pension income is paid in future money, consider inflation: a monthly pension that looks comfortable today may buy much less in thirty years.

• Every percentage and age here is an editable assumption; rules can change.
• Returns are not guaranteed and depend on the fund choices you make.
• Taxes and charges are not included.
• This is an illustration only, not financial advice.
• The calculation stays in your browser and nothing is uploaded.

Why use this nps calculator tool

• Corpus at retirement. Monthly contributions compound until your retirement age, with an optional yearly increase and starting corpus.
• Lump sum versus annuity. Edit the annuity share and see how the corpus splits into cash now and income later.
• Estimated monthly pension. Uses an annuity rate you enter, so you can try quotes from different providers.
• Rules not hard-coded. Percentages and ages are inputs because pension rules change over time.

Frequently asked questions

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