How this calculator works
Month-end contributions accumulate at an effective monthly return derived from the annual assumption. A selected share of the projected corpus is then allocated to an annuity. The pension is a simple payout-rate illustration, not an insurer quote. PFRDA's current All Citizen normal-exit framework permits up to 80% lump sum with at least 20% annuity, subject to exit conditions and small-corpus alternatives; government-sector rules differ. The slider is a scenario input and does not determine eligibility. No tax-free withdrawal amount is inferred from the selected share.
Formula
Corpus = opening x (1 + i)^n + monthly contribution x [(1 + i)^n - 1]/i, with i = (1 + annual return)^(1/12) - 1. Annuity amount = corpus x selected share. Illustrative monthly pension = annuity amount x payout rate/12.
Worked example
An opening corpus of INR 1,000 with no contributions grows to INR 1,210 in two years at 10%. Allocating 20% gives INR 242 for annuity purchase and INR 968 remaining; a 6% illustrative payout gives INR 1.21 per month.
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Frequently asked questions
Is the investment return fixed?
No. NPS investment performance depends on the selected schemes, assets and costs.
Is 20% always the required annuity share?
No. Exit type, sector, corpus size and current regulations matter. Select an appropriate scenario and confirm your actual exit conditions.
Is the remaining lump sum tax-free?
This page does not calculate tax exemption. Withdrawal permission and tax treatment are separate questions.