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Use the fields in the tool above and keep units and formats consistent.
Project your NPS corpus at 60, see the lump sum and annuity split, and estimate your monthly pension from your contribution, age and expected return.
Estimated corpus
โน3,82,36,355.45
Total contribution
โน1,20,00,000
NPS results are estimates for planning and should be checked against current official rules or professional advice where applicable.
How much will your National Pension System account pay you each month after 60? Most people have no idea until retirement is close. This NPS calculator projects your corpus from a monthly contribution, an expected return and your current age. It then splits the maturity amount into a lump sum and an annuity. That split decides your pension.
Say you start at 30 and contribute Rs 5,000 every month until 60. That is 360 contributions, or Rs 18 lakh in total. At an assumed 10% annual return, compounded monthly, the corpus grows to about Rs 1.13 crore. Roughly Rs 75 lakh of that growth arrives in the last ten years alone.
| Item | Amount |
|---|---|
| Total invested | Rs 18,00,000 |
| Projected corpus at 60 | Rs 1,13,02,440 |
| 40% used to buy an annuity | Rs 45,20,976 |
| 60% taken as lump sum | Rs 67,81,464 |
| Monthly pension at a 6% annuity rate | Rs 22,605 |
The maths behind it is the future value of a monthly series.
FV = P x [(1 + r)^n - 1] / r
P is the monthly amount, r is the monthly rate and n is the number of months. NPS returns are market-linked, so 10% is an assumption, not a promise.
At exit, NPS has traditionally required at least 40% of the corpus to buy an annuity. The rest can be withdrawn as a tax-free lump sum. You may annuitise more if you want a bigger monthly pension. PFRDA has been revising exit rules for non-government subscribers, so check the current limits before you plan.
Annuity income is added to your income each year and taxed at your slab rate. A higher annuity share gives steadier income but less cash in hand at 60. Try both splits in the NPS calculator and compare the monthly figure.
A projection is only as good as its assumptions. Over 30 years, a one-point change in return moves the final figure by lakhs. Keep these traps in mind before you rely on the number.
Running the numbers on ToolsMate takes a minute, and revisiting them every year keeps the plan realistic. Raise your contribution when your salary rises. The corpus responds faster than most people expect, because early money has the longest time to compound.
Use the fields in the tool above and keep units and formats consistent.
Review the result shown in the output area.
Confirm that the result matches your situation before using it for a decision.
NPS estimate uses monthly contributions and an assumed annualized return compounded monthly.This describes the core logic used by the tool. Check any assumptions that may affect your result.
Use accurate inputs and keep units consistent.
Review the assumptions before using the result for a decision.
Compare important results with an independent or official source.
Your NPS pension depends on the annuity portion of your corpus and the annuity rate an insurer offers. If Rs 45 lakh buys an annuity paying 6% a year, you get about Rs 22,500 a month. Rates differ by insurer and plan type.
Many planners use 8-10% for a balanced mix and a little more for aggressive equity choices. Equity exposure in NPS is capped at 75% for most private subscribers, and lifecycle funds reduce it with age. Test a lower rate as well.
Usually not, because part of the corpus must buy an annuity. Very small corpuses below a threshold set by PFRDA can be withdrawn fully. Exit rules and thresholds have been revised in recent years, so confirm the current limit with your CRA.
The lump sum withdrawn at 60, up to 60% of the corpus, is fully tax-free. The annuity income you receive afterwards is taxable at your slab rate. Partial withdrawals before 60, within permitted limits, are also exempt from tax.
Only the employer's contribution under Section 80CCD(2) is deductible in the new regime, up to 14% of basic plus DA. The additional Rs 50,000 deduction under 80CCD(1B) works only if you choose the old regime for that year.
Tier I is the main pension account, with tax benefits and withdrawal limits until 60. Tier II is a voluntary savings account you can withdraw from at any time. It offers no deduction for most people, apart from a specific scheme for central government staff.
Your existing corpus stays invested and keeps earning market-linked returns. Tier I expects a minimum contribution of Rs 1,000 a year, though. If you miss it, check with your CRA or point of presence about reactivation, which may involve a small fee.
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