NPS Pension Calculator (2026): Corpus, Lump Sum & Monthly Annuity Projection

National Pension System (NPS) Pension Calculator — Complete Guide (2026)

Planning retirement in India is no longer optional. With rising life expectancy, inflation, and changing government policies, knowing how much pension you’ll actually receive is critical.

The National Pension System (NPS) is one of India’s most important retirement schemes, but it’s also one of the most misunderstood. Most people know how much they contribute — very few know what that turns into at retirement.

That’s exactly what this NPS Pension Calculator helps you do.

It projects:

• Your total NPS corpus at retirement

• The lump sum you can withdraw

• The amount used to buy annuity

• Your estimated monthly pension

• How results change under different return scenarios

What this NPS Calculator does (in simple words)

This tool answers one question clearly:

“If I invest X in NPS every month, what pension will I get?”

Specifically, it calculates:

• Retirement corpus using monthly compounding

• Impact of annual step-up in contributions

• Allowed lump-sum withdrawal at exit

• Remaining amount for annuity purchase

• Estimated monthly pension using simulated annuity rates

• A sensitivity table to show best / base / worst-case outcomes

This makes it far more realistic than basic NPS calculators.

Who should use this calculator?

This tool is ideal for:

• Government employees under NPS

• Private-sector employees investing via NPS

• Self-employed individuals using NPS Tier I

• Anyone planning retirement between 40–75 years

• Users comparing NPS vs other retirement options

Inputs explained (what each field means)

1️⃣ Starting / Existing NPS Corpus

If you already have money in NPS, enter it here.
If not, keep it as zero.

This avoids underestimating your retirement corpus.

2️⃣ Monthly Contribution

Your current monthly NPS investment.

This can include:

• Employee contribution

• Employer contribution (if applicable)

• Voluntary top-ups

3️⃣ Annual Step-Up (%)

This is one of the most important inputs.

It assumes you increase your contribution every year — usually due to:

• Salary hikes

• Career progression

• Higher saving capacity

A 10% step-up can double or triple your final corpus over long periods.

4️⃣ Current Age & Retirement Age

Used to calculate the total investment duration.

Example:

• Current age: 30

• Retirement age: 60
  → Investment period = 30 years

5️⃣ Expected Annual Return (Base)

This is your central assumption (commonly 8–10%).

The calculator also runs 8%, 10%, and 12% scenarios automatically so you can see how sensitive your plan is to returns.

6️⃣ Lump-Sum Withdrawal Percentage

At retirement, NPS allows you to withdraw a portion of the corpus as lump sum, with the rest used to buy annuity.

The calculator lets you choose this percentage (commonly 60%).

7️⃣ Annuity Rate (Simulation)

This determines your monthly pension.

You can choose:

• Low (5%)

• Medium (6%)

• High (7%)

• Or enter a custom rate

⚠️ This is a simulation, not a guaranteed insurer quote.

Outputs explained (what the results mean)

✔ Projected Corpus

Total value of your NPS investments at retirement.

This includes:

• Starting corpus

• Monthly contributions

• Step-ups

• Compounding over time

✔ Lump Sum Withdrawn

The portion you take out at retirement.

This is often used for:

• Home loan closure

• Emergency fund

• Medical needs

• Reinvestment elsewhere

✔ Amount for Annuity

This part is locked in to buy a pension product.

It determines your lifelong monthly income.

✔ Estimated Monthly Annuity

Your first-year monthly pension, based on:

• Annuity amount

• Selected annuity rate

This is nominal income, not inflation-adjusted.

✔ Sensitivity Table (8% / 10% / 12%)

This table is one of the most valuable features.

It shows:

• How much corpus you get if returns are lower or higher

• How much monthly pension changes in each scenario

This helps you avoid overconfidence and plan conservatively.

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How to read these results correctly (important)

Many users misinterpret pension numbers. Here’s how to read them properly:

• Corpus is not pension — it’s the money you accumulate

• Annuity is not guaranteed — rates change with market conditions

• Monthly pension is nominal — inflation will reduce purchasing power

• Sensitivity matters more than precision — focus on ranges, not exact numbers

A good retirement plan works even in average or below-average scenarios.

Example: Realistic interpretation

If the calculator shows:

• Monthly pension: ₹63,000 at age 60

With 6% inflation, that has the purchasing power of roughly:

• ₹21,000–₹23,000 in today’s money

This insight alone often convinces users to:

• Increase contributions

• Extend working years

• Combine NPS with other retirement products

Key assumptions used in this calculator

• Monthly compounding

• Step-up applied once every 12 months

• No fund management charges deducted

• No taxes deducted at exit

• Annuity simulated using flat rates

• No inflation adjustment applied by default

All assumptions are intentionally visible to avoid misleading results.

Limitations you should know

• Actual annuity payouts depend on insurer quotes

• NPS rules may change over time

• Tax treatment depends on prevailing laws

• Inflation impact is not auto-adjusted (yet)

This tool is for planning, not for exact payout promises.

Frequently Asked Questions (FAQs)

Is NPS pension guaranteed?

No. NPS is a market-linked system. Only the annuity payout structure is fixed after purchase, not returns before retirement.

Can I withdraw 100% of my NPS corpus?

Generally no. A portion must be used to buy annuity unless corpus is below prescribed limits.

Is the annuity amount tax-free?

Annuity income is typically taxable as per your income tax slab at the time of receipt.

Should I rely only on NPS for retirement?

For most people, no. NPS should be one pillar, alongside EPF, PPF, mutual funds, and other assets.

Why does step-up change results so much?

Because compounding rewards higher contributions in later years disproportionately. Step-up reflects real life more accurately.

When NPS works best?

NPS works well if you:

• Start early

• Increase contributions regularly

• Use conservative return assumptions

• Combine it with other retirement instruments

It is not a magic pension, but it is a powerful long-term tool.

Final thoughts

The biggest retirement mistake is not calculating at all.

This NPS Pension Calculator gives you:

• Clarity instead of guesswork

• Ranges instead of false certainty

• Control instead of hope

Use it, revisit it every year, and adjust your plan as life changes.

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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.

Disclaimer

This calculator provides estimates for educational purposes only. Actual NPS returns, annuity rates, tax treatment, and withdrawal rules depend on prevailing government regulations and insurer terms. Always consult official NPS guidelines or a qualified financial advisor before making retirement decisions.