NPS. Pension.
Project your National Pension System corpus at 60 — the mandatory 40% annuity, the lump sum you can withdraw, and your estimated monthly pension.
What pension will NPS build?
Enter your monthly contribution and age. We'll project the corpus at 60, the 40% annuity split, your lump sum and monthly pension.
How NPS builds your pension
The National Pension System invests your monthly contributions in market-linked funds until retirement (age 60). At retirement you must use at least 40% of the corpus to buy an annuity that pays a monthly pension; up to 60% can be taken as a tax-free lump sum.
Indian SaaS context: NPS adds a ₹50,000 deduction under 80CCD(1B) on top of 80C. A larger annuity allocation means a higher pension but a smaller lump sum — model both. Annuity and market returns are assumptions, not guarantees.
Frequently asked questions
Why must 40% go to an annuity?+
NPS rules require that at least 40% of your corpus at retirement is used to buy an annuity, which pays your monthly pension. The remaining up to 60% can be withdrawn as a tax-free lump sum. This calculator enforces the 40% minimum.
How is the monthly pension estimated?+
Pension ≈ annuity corpus × annuity rate ÷ 12. The annuity rate is what the insurer pays on the corpus you hand over. A larger annuity allocation means a bigger pension but a smaller lump sum.
What tax benefits does NPS offer?+
Beyond 80C, NPS gives an extra ₹50,000 deduction under 80CCD(1B). At retirement, up to 60% lump-sum withdrawal is tax-free; the annuity income is taxed as you receive it.