NPS Calculator

Calculate your National Pension System (NPS) maturity amount, lumpsum withdrawal, and estimated monthly pension.

Estimated Monthly Pension$22,793.25
Total Investment$1,800,000.00
Total Maturity Amount$11,396,626.62
Lumpsum Withdrawn$6,837,975.97
Annuity Reinvested$4,558,650.65

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Understanding the National Pension System (NPS)

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme managed by the Pension Fund Regulatory and Development Authority (PFRDA) in India. It is designed to enable systematic savings and provide a regular income post-retirement. Subscribers contribute regularly during their working life and can withdraw a portion as a lump sum upon retirement, while using the rest to purchase an annuity for a monthly pension.

How NPS Works

When you reach retirement age (usually 60), you are allowed to withdraw up to 60% of your total accumulated corpus as a tax-free lump sum. The remaining 40% (or more, if you choose) must be mandatorily used to purchase an annuity plan from a life insurance company, which will provide you with a regular monthly pension.

Worked Example

  1. Monthly Contribution: ₹5,000
  2. Current Age: 30 (Retiring at 60, meaning 30 years of investment)
  3. Expected Return: 10%
  4. Total Investment: ₹5,000 × 12 × 30 = ₹18,00,000
  5. The compounded maturity amount will be significantly higher. If the maturity is ₹1.1 crore, and you choose a 40% annuity purchase, ₹44 lakhs goes into the annuity and ₹66 lakhs is withdrawn as a lump sum.
  6. At an annuity return rate of 6%, ₹44 lakhs will provide a monthly pension of ₹22,000.

Frequently Asked Questions

Can I withdraw the entire NPS corpus at retirement?

No, you can withdraw a maximum of 60% of your corpus as a lump sum. The remaining 40% must be used to purchase an annuity. If the total corpus is less than ₹5 lakhs, you can withdraw the entire amount.

Are NPS returns guaranteed?

No, NPS is a market-linked product. Your returns depend on the performance of the underlying asset classes (Equity, Corporate Bonds, Government Securities) managed by your chosen Pension Fund Manager.

Disclaimer: This calculator is for educational and informational purposes only. It is not a substitute for professional financial advice. Results are estimates based on the information provided and may not reflect actual outcomes. Please consult with a qualified financial advisor, accountant, or tax professional before making any financial decisions. Past performance does not guarantee future results.