NPS Calculator
Estimate your National Pension System corpus and monthly pension at retirement.
About the NPS Calculator
The National Pension System (NPS) is a market-linked retirement scheme with an extra ₹50,000 tax deduction under Section 80CCD(1B), over and above the ₹1.5 lakh 80C limit. The AlarmDaddy NPS Calculator estimates the corpus you will accumulate by age 60 and the monthly pension you can expect from the annuity portion.
Enter your monthly contribution, current age, expected annual return (NPS equity-heavy funds have returned 9% to 12% historically), and the annuity rate at retirement. The calculator projects the total corpus at 60, the portion you can withdraw as a lumpsum (up to 60%, tax-free), and the annuity that funds your monthly pension from the remaining 40%.
How to use this calculator
- 1Enter your current age and monthly NPS contribution.
- 2Enter the expected annual return during accumulation.
- 3Enter the expected annuity rate at retirement (6% to 7% typical).
- 4Read your projected corpus at 60 and estimated monthly pension.
The formula
The accumulation phase uses the SIP/annuity future-value formula with monthly compounding until age 60. At retirement, at least 40% of the corpus must buy an annuity; the monthly pension is that annuity amount times the annuity rate, divided by 12.