Free NPS Calculator – See Your Corpus and Monthly Pension at 60

What the NPS Calculator Works Out and How the 60/40 Split Happens

The National Pension System is India's government-backed, market-linked retirement account, regulated by PFRDA and administered through NPS Trust. This calculator does two jobs at once: it projects what your monthly Tier I contributions could grow into by age 60, then divides that corpus exactly the way the exit rules do — into a lump sum you can take in hand and an annuity corpus that buys you a pension for life. Salaried employees deciding how much salary to route into NPS, self-employed professionals with no employer pension behind them, and anyone weighing the extra ₹50,000 deduction under Section 80CCD(1B) use it to turn a vague retirement intention into two hard numbers: corpus at 60, and rupees per month after that. Two calculations run back to back. The accumulation stage treats your contributions as an ordinary annuity compounded monthly: Corpus = C × ((1 + r)ⁿ − 1) ÷ r. Here C is your monthly contribution in rupees, r is the monthly expected return — the annual rate divided by 12 and then by 100, so 10% a year becomes 0.008333 — and n is the number of contributing months left, which is (60 − your current age) × 12. The maturity stage then applies the rules: annuity corpus = corpus × annuity share, lump sum = corpus − annuity corpus, and monthly pension = annuity corpus × annuity rate ÷ 100 ÷ 12. At least 40% must go to the annuity, and up to 60% comes out tax-free under Section 10(12A). The annuity share and the annuity rate are both visible inputs here, never buried assumptions, because they change the answer more than anything else on the page. Take a 30-year-old putting ₹6,000 a month into Tier I and assuming 10% a year. That is 360 contributions totalling ₹21,60,000 of your own money, and the projection reaches a corpus of ₹1,35,62,928 at 60 — roughly ₹1.14 crore of it estimated growth. Keep the annuity share at the statutory 40% and ₹54,25,171 buys the annuity while ₹81,37,757 comes to you as a tax-free lump sum. At a 6% annuity rate that annuity corpus pays ₹27,126 a month, before tax on the pension. Move the slider to a 60% annuity share and the pension rises to about ₹40,689 a month while the lump sum falls to ₹54,25,171 — the same corpus, a completely different retirement shape. Three situations make this worth running properly. A 35-year-old in a private job with no defined-benefit pension can test whether ₹5,000 or ₹10,000 a month gets them to a liveable pension, and see how badly starting five years later hurts. A salaried taxpayer under the Old Regime who has already exhausted the ₹1.5 lakh Section 80C limit can size a contribution that captures the full extra ₹50,000 under 80CCD(1B) — that is ₹4,167 a month, and the calculator shows the corpus that discipline builds by 60. And someone nearing retirement can work the split in reverse: if you need ₹40,000 a month, at a 6% annuity rate you need an annuity corpus of ₹80,00,000, which at a 40% share means a total corpus of ₹2 crore. One nuance decides more than the return rate: the annuity rate is not yours to choose. A life insurer quotes it at the moment you exit, and it varies by variant — a joint-life annuity with return of purchase price pays noticeably less per month than a plain lifetime annuity on the same corpus. Test 5.5% and 7% and treat the gap as your real uncertainty. Remember too that your pension is taxed as income even though the 60% lump sum is not. Rules are stamped on the page with their as-of date, so verify with NPS Trust before you commit. Everything here is computed in your browser and nothing you type is uploaded or stored.

NPS Calculator Formula & Method

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