What is NPS?
The National Pension System (NPS) is a market-linked retirement scheme regulated by PFRDA. You contribute monthly until age 60; at retirement, at least 40% of the corpus must buy an annuity that pays a monthly pension, and the rest can be withdrawn as a tax-free lumpsum.
Formula
Corpus is the future value of a monthly SIP. At retirement it is split into a lumpsum and an annuity, which pays a monthly pension at the annuity rate.
Corpus = monthly × [(1+i)^n − 1]/i × (1+i) Annuity = Corpus × annuity % Lumpsum = Corpus − Annuity Monthly pension = Annuity × annuity return / 12
How to use this calculator
Enter your monthly contribution, current and retirement age, and the long-term return you expect on equity-heavy NPS funds (typically 9–11%). Set the annuity share (minimum 40%) and a realistic annuity return (currently 5.5–7%).