How this calculator works
- Step 1Contribute monthly₹10,000.00At the start of each month, rising once a year if you choose.
- Step 2Grow until exit₹2,07,92,927.16At the return you assume, compounding monthly.
- Step 3Split at exit₹1,66,34,341.73The lump sum you may take under the 2025 exit rules.
- Step 4Annuity pension₹20,792.93Paid monthly from the share that buys an annuity.
The National Pension System builds a corpus from your contributions and market returns. At exit, part of the corpus must buy an annuity, a pension from an insurer, and the rest can be taken out.
The PFRDA exit regulations, amended in December 2025, set that minimum. It is 40% for government employees and 20% for other subscribers, with special limits for small corpora.
Worked example: ₹10,000 a month from 30 to 60
- Monthly rate
i = (1 + R)^(1/12) − 1- Corpus
C = P × [((1 + i)^n − 1) / i] × (1 + i)- Pension
annuity × annuity rate ÷ 12
- Pmonthly contribution ₹10,000.00
- Ryearly return 10%
- nmonths 360
- Total contributed₹36,00,000.00
- Corpus at 60₹2,07,92,927.16
- At least 20% buys an annuity₹41,58,585.43
- Lump sum₹1,66,34,341.73
- Monthly pension at 6%₹20,792.93
The corpus formula is the future value of an annuity due from OpenStax’s Principles of Finance. A separate month-by-month simulation gives the same figure.
Government and non-government exits
- Non-government₹20,792.9320% buys an annuity; lump sum ₹1,66,34,341.73.
- Government₹41,585.8540% buys an annuity; lump sum ₹1,24,75,756.30.
A larger annuity share means a larger pension and a smaller lump sum. You can choose more than the minimum but not less.
Small corpora have their own rules
- Lump sum
- Annuity or payouts
Up to ₹8 lakh, the whole corpus may be withdrawn. Above ₹8 lakh and up to ₹12 lakh, at most ₹6 lakh can be a lump sum. The rest buys an annuity or is paid out over at least six years.
How the assumptions move the answer
- 8% return₹1,41,76,132.44Two points lower each year.
- 10% yearly increase₹6,01,55,402.25Raising the contribution with pay.
The return is an assumption, not a promise: NPS is market-linked, so test a cautious rate alongside your central one.
Related retirement tools
NPS is one way to build a retirement corpus. The size you need comes from your expenses.
To estimate the corpus a retirement needs, use the retirement planner. For a government-backed account with a fixed notified rate, see the PPF calculator, and for income from a corpus, the pension calculator.
Common mistakes
Mistake: Treating the expected return as guaranteed.
Instead: Test a lower rate; returns vary with markets and the scheme chosen.
Mistake: Assuming the whole corpus can be withdrawn.
Instead: Above ₹12 lakh, at least 20% or 40% must buy an annuity.
Mistake: Using today’s annuity rate for a purchase decades away.
Instead: Treat it as an assumption and check quotes at exit.
Mistake: Exiting early and expecting the same split.
Instead: Exits before 60 with under 15 years need 80% in an annuity.
Methodology and sources
Tests compare the closed form with an independent month-by-month simulation and apply the exit bands as the gazette states them.
The exit rules come from the PFRDA (Exits and Withdrawals under the National Pension System) (Amendment) Regulations, 2025, published in the Gazette of India on 15 December 2025.
Tax on the lump sum and pension, partial withdrawals and early exits are not modelled. Source links, the review date and the financial disclaimer follow.
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