Regular monthly contributions compound into a retirement corpus.
About this calculator
Regular monthly contributions compound into a retirement corpus. At retirement, how much of that corpus turns into a monthly pension depends on the annuity rate and withdrawal rules. India's NPS requires at least 40% of the corpus to buy an annuity; the rest can be taken as a tax-free lumpsum.
This pension calculator projects your corpus from monthly SIP-style contributions, then applies the NPS 60/40 split. It shows the tax-free lumpsum, the annuity corpus, and estimated monthly pension at the annuity rate you enter.
Saving ₹10,000/month for 25 years at 10% expected return builds a corpus of about ₹1.34 crore. The 60% lumpsum is ₹80.4 lakh (tax-free under current NPS rules). The remaining 40% (₹53.6 lakh) at a 6% annuity rate gives roughly ₹26,800/month pension. Compare with the dedicated [[nps]] calculator for tax deductions, or use [[retirement]] for a broader savings plan. An [[fd]] or [[emi]] on a home loan may compete for the same monthly budget — run both numbers before committing.
Common uses
- Estimating monthly pension from ₹10,000/month NPS contributions over 25 years at 10% return
- Comparing 6% vs 7% annuity rates on a ₹1 crore corpus before buying an NPS annuity at 60
- Checking whether increasing SIP from ₹5,000 to ₹15,000 moves the needle on post-retirement income
- Planning alongside [[retirement]] savings to see if NPS alone covers your monthly expense target
Frequently asked questions
How much monthly pension will I get from ₹10,000/month for 25 years at 10% return?
Corpus is about ₹1.34 crore. With NPS 40% annuity rule and 6% annuity rate, monthly pension is roughly ₹26,800. The remaining 60% (₹80.4 lakh) is available as tax-free lumpsum under current rules.
What annuity rate should I use for NPS pension planning?
NPS annuity providers currently offer 5.5–6.5% depending on the plan (with or without spouse pension, return of purchase price). Use 6% as a reasonable mid-point. Higher rates mean more monthly pension but may come with fewer benefits.
Is the NPS lumpsum withdrawal tax-free?
Under current rules, up to 60% of the NPS corpus at age 60 can be withdrawn as a tax-free lumpsum. The 40% used to buy an annuity is not taxed at withdrawal, but monthly pension payments are taxable as income.
How does this differ from the NPS calculator?
The [[nps]] calculator includes age-based inputs, 80CCD tax deductions and asset allocation. This pension calculator focuses on corpus and monthly pension from any regular contribution plan — useful for NPS, EPF voluntary savings or private annuity planning.
Can I get more pension by contributing longer or at a higher return?
Both help. An extra 5 years of ₹10,000/month at 10% adds roughly ₹10–12 lakh to corpus. Shifting from conservative (8%) to balanced (10%) allocation over 25 years can add 30–40% to the final corpus — but higher equity means more volatility.