Project the corpus built by monthly NPS contributions, how it splits between a lump sum and a compulsory annuity at retirement, and the monthly pension that annuity buys.
Contributions compound monthly using the standard SIP accumulation formula. At exit the corpus is divided by the annuity percentage you choose; the annuity portion multiplied by the annuity rate and divided by 12 gives the indicative monthly pension. Tax saving applies your slab rate to contributions, capped at the combined ₹2 lakh available through Section 80C (₹1.5 lakh) and Section 80CCD(1B) (₹50,000).
At superannuation, at least 40% of the corpus must be used to buy an annuity, and up to 60% can be withdrawn as a tax-free lump sum. The calculator lets you model different splits, but 40% is the statutory minimum for the annuity portion.
Section 80CCD(1B) provides an additional ₹50,000 deduction for NPS contributions, over and above the ₹1.5 lakh Section 80C limit. It is one of the few ways to claim more than ₹1.5 lakh, which is why NPS is often used to top up 80C once other investments have filled it.
No. It depends on the annuity rate available from insurers when you actually retire, which is not knowable today. Treat the pension figure as an indicative planning number based on the rate you entered, not a promise.
This calculator is for information only and is not investment, tax, or financial advice. Figures are estimates based on the assumptions you enter and are not a guarantee of future returns. Consult a SEBI-registered adviser or a qualified tax professional before acting.