🧓 NPS Calculator
Estimate your NPS maturity corpus, lump sum, annuity investment and monthly pension at retirement.
Frequently Asked Questions
How do I use the NPS Calculator?
Enter your Current Age, Monthly Contribution, Expected Return, Annuity Return Rate and Annuity Purchase percentage, then click "Calculate NPS" to see your projected maturity corpus, total invested amount, total returns, lump sum withdrawal, annuity investment and estimated monthly pension, along with a year-by-year growth chart and table.
How is the NPS maturity corpus calculated?
This calculator assumes a fixed monthly contribution invested at the start of each month, compounded monthly at your expected annual return, from your current age until age 60. The future value formula used is FV = P × [((1+r)^n − 1) / r] × (1+r), where P is the monthly contribution, r is the monthly rate, and n is the number of months.
What is the difference between "Expected Return" and "Annuity Return Rate"?
Expected Return is the annual growth rate you assume your NPS investment (equity, corporate bond and government securities) will earn while you're contributing, up to age 60 — this drives how big your maturity corpus grows. Annuity Return Rate is a separate, typically lower, rate offered by the annuity service provider (ASP) on the portion of your corpus used to buy an annuity at retirement — this drives your monthly pension amount. The two are independent assumptions: a higher Expected Return grows your corpus faster, while a higher Annuity Return Rate increases the pension paid out from that corpus. Neither rate is guaranteed — actual NPS fund performance and annuity rates at the time of retirement can differ significantly from these assumptions.
What is the minimum annuity purchase requirement?
As per current PFRDA rules, at least 40% of your NPS corpus must be used to purchase an annuity at retirement (age 60), which provides your monthly pension. The remaining amount (up to 60%) can be withdrawn as a tax-free lump sum. These rules are set by the regulator and can change — confirm the current limits with your NPS provider or PFRDA before relying on them.
How is the monthly pension amount determined?
Your monthly pension is estimated as the annuity amount multiplied by the annuity rate offered by the annuity service provider (ASP) you choose at retirement, divided by 12. Annuity rates vary between providers and change over time, so the actual pension you receive depends on the rate available when you retire.
Are NPS returns guaranteed?
No. NPS returns depend on the performance of the underlying equity, corporate bond and government securities funds you choose, and are not guaranteed. This calculator uses a constant assumed rate for illustration only — actual returns will vary. For a one-time investment instead of regular contributions, see our Lumpsum Calculator.
Why does the calculator assume contributions start at the beginning of each month?
The future value formula used — FV = P x [((1+r)^n - 1) / r] x (1+r) — is an "annuity due" formula, which assumes each month's contribution is invested on day one of that month and earns a full month of returns. This gives a slightly higher corpus than an "ordinary annuity" formula (contributions at month-end), since every contribution gets one extra month to compound.
Is the NPS maturity corpus or the lump sum withdrawal taxable?
As per current rules, up to 60% of your NPS corpus can be withdrawn as a lump sum at retirement (age 60) and this lump sum is entirely tax-free. The remaining portion used to purchase an annuity is not taxed at the time of purchase, but the monthly pension you subsequently receive from the annuity is taxed as regular income in the year you receive it. Confirm current limits with PFRDA or a tax advisor.