NPS Calculator: Formula and Examples
Project NPS savings and illustrate a user-selected annuity and lump-sum split.
How the calculation works
The annuity percentage is a scenario input and is not enforced as a statutory minimum. Applicable NPS exit rules depend on category, corpus, age, and circumstances. The annuity payout rate is an illustration, not an insurer quote.
NPS formula
Accumulate monthly investments to the planned exit age. Annuity purchase amount = corpus × chosen annuity percentage. Illustrative monthly income = annuity amount × annual payout rate ÷ 12.
Worked example
A ₹10,00,000 corpus with a chosen 40% annuity allocation sets aside ₹4,00,000. A hypothetical 6% annual payout is ₹2,000 monthly.
Inputs, assumptions, and interpretation
Return, exit age, annuity allocation, and payout rate are user-entered assumptions. The model does not enforce NPS exit rules or price a particular annuity contract.
Displayed values are rounded, while calculations use unrounded numbers. The charts show modeled values rather than historical performance. For background, see NPS Trust scheme and exit information.
Frequently asked questions
Are the default rates guaranteed?
No. Default inputs illustrate how the calculation works. Enter rates and contribution amounts relevant to your scenario, and review the applicable account or scheme terms.
Why might an actual statement differ?
Actual payment dates, compounding conventions, changing returns, fees, tax treatment, and account rules can differ from a simplified projection.
How should I interpret a negative result?
Some comparisons or value changes can be negative, including investment losses or a gap between alternative scenarios. Read the result labels to distinguish a balance from a change in value.