Calculator
NPS Calculator: Corpus + Annuity Pension
See exactly what your monthly NPS contributions become: corpus at retirement, tax-free lump sum, and monthly pension for life. Adjust your contribution, age, and return assumptions in real time.
Corpus growth year by year
How this works: Your monthly contribution of ₹5,000 grows at 9% per year for 30 years. At retirement, you withdraw 60% as a tax-free lump sum and use 40% to buy an annuity at 6.5% per year, giving you approximately ₹19,982/month for life.
Assumes start-of-month contributions. Annuity rates are indicative for age 60 entry; actual quotes vary by provider and annuity type. Past returns do not guarantee future performance.
How the math works
NPS uses monthly compounding with contributions at the start of each month (annuity due).
The formula is the same one used by Excel's =FV() function:
Corpus = P × ((1 + r)^n − 1) / r × (1 + r)
- P = monthly contribution
- r = monthly rate = annual rate ÷ 12 ÷ 100
- n = total months = (retirement age − current age) × 12
At retirement, 60% of the corpus is yours as a tax-free lump sum. The remaining 40% buys an annuity. Your monthly pension is:
Monthly Pension = (0.4 × Corpus × Annuity Rate) ÷ 12
NPS vs EPF vs PPF for retirement
| Feature | NPS Tier I | EPF | PPF |
|---|---|---|---|
| Return type | Market-linked | Government-declared | Government-declared |
| Lock-in | Till 60 | Till retirement | 15 years |
| Tax at exit | 60% lump sum tax-free; annuity taxable | Usually tax-free | Fully tax-free (EEE) |
| Exclusive ₹50K deduction | Yes (80CCD(1B)) | No | No |
| Employer contribution | Yes (up to 14%) | Yes (12%) | No |
| Mandatory annuity | Yes (40%) | No | No |
Read the complete NPS guide → for fund manager selection, tax benefits, withdrawal rules, and all 7 NPS variants.
Related calculators
Last updated · site changelog