NPS Calculator: How Much Monthly Pension Will You Get?

How NPS builds your retirement corpus

The National Pension System (NPS) is a market-linked retirement scheme. Your monthly contributions are invested across equity, corporate bonds and government securities based on your chosen allocation, and the corpus compounds until you turn 60.

The lumpsum + pension split

At retirement (age 60), NPS rules let you withdraw up to 60% of the corpus tax-free as a lumpsum, while at least 40% must be used to buy an annuity that pays your monthly pension. Your pension therefore depends on three things: the final corpus, the share annuitised, and the annuity rate offered by the insurer.

Worked example: Contributing ₹5,000/month from age 30 to 60 at an assumed 10% p.a. builds a corpus of about ₹1.1 crore. Annuitising 40% (~₹44 lakh) at an assumed 6% annuity rate gives roughly ₹22,000 per month pension, with ~₹66 lakh taken as a tax-free lumpsum.

Model your own numbers on our NPS calculator.

What changes your monthly pension

• Start early — three extra decades of compounding dwarf the contribution amount.
• Annuitise more than 40% if you want a larger pension (at the cost of a smaller lumpsum).
• Annuity rates vary between providers and over time, so the final pension is an estimate, not a guarantee.

Frequently asked questions

How much pension will I get from NPS? It depends on your corpus, how much you annuitise, and the prevailing annuity rate — the calculator gives a realistic estimate from your inputs.

Is the NPS lumpsum taxable? Up to 60% withdrawn at maturity is currently tax-exempt; the annuity income is taxed as per your slab in the year you receive it.

This article is for general education only and is not investment advice. NPS returns are market-linked and not guaranteed.