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Retirement calculator (with NPS)

  

Your monthly investment grows at a steady return until you retire.

Plan type

10 thousand

% a year
More · savings, inflation, step-up
% a year
%

Corpus at 60

$22,793,253

Worth $3,968,536 in today's money.

At 4% a year it pays about $75,978 a month.

You invest
$3,600,000
Growth
$19,193,253
Invested16%$3,600,000.00Growth84%$19,193,253.24

Next: SWP calculatorDraw a monthly income from the corpus.

Retirement maths and the new NPS exit rules

A retirement plan comes down to two numbers: the corpus your saving builds by retirement, and what that corpus can pay each year. The tool shows the corpus in future rupees and in today's money, because 30 years of 6% inflation shrinks ₹1 crore to about ₹17 lakh of today's spending power. A common target is 25 times your yearly spending at retirement. That goes with the 4% rule, which says a balanced portfolio can usually fund withdrawals of about 4% a year, rising with inflation, for 30 years.

The National Pension System's exit rules changed in December 2025. For non-government subscribers, including the All Citizen and corporate models, at least 20% of the corpus must now buy an annuity at normal exit. Before, it was 40%, so up to 80% can now be taken as a lump sum. If the corpus is ₹8 lakh or less, all of it can be withdrawn. Government employees still have to put at least 40% into an annuity. The tool lets you set the annuity share anywhere from 20%.

NPS contributions get an extra ₹50,000 deduction in the old regime, and employer contributions are deductible in both regimes, within limits. To plan the build-up, use the SIP calculator or the step-up SIP calculator. For a safe portion, see PPF. To test withdrawals after you retire, use the SWP calculator, and check the effect of prices with the inflation calculator.

Sources

What this calculator does not account for

  • Returns are not fixed. Real markets go up and down, so the actual result can be higher or lower.
  • Health costs and big one-off expenses in retirement.
  • Changes to NPS, annuity or tax rules.

How this is calculated

Formula: Monthly compounding, then inflation and annuity

corpus =Σ monthly × (1 + r/12)^k · today's value =corpus ÷ (1 + inflation)^years

What the symbols mean

  • rExpected yearly return. 10% is a common long-run equity assumption; 7% to 8% for a mixed portfolio.
  • annuity %NPS: non-government subscribers must put at least 20% of the corpus into an annuity at exit (40% for government staff). The rest can be a lump sum.
  • annuity rateThe yearly pension per ₹100 of annuity. Around 6% to 7% today.

Good to know

  • The 4% rule: a corpus can usually fund yearly withdrawals of about 4% of its value, rising with inflation, for 30 years.
  • NPS Tier I contributions get an extra ₹50,000 deduction under 80CCD(1B) in the old regime.

Read the full methodologyFound an error? Contact us

Worked examples

Each example is worked out by the same code as the calculator above.

₹10,000 a month from 30 to 60

At 10% a year, compounding monthly, the corpus at 60 is ₹2.28 crore. At 6% inflation that is worth ₹39.7 lakh in today's money.

NPS exit with ₹50 lakh

With the minimum 20% annuity, ₹10 lakh buys a pension. At a 6.5% annuity rate that is ₹5,417 a month, and ₹40 lakh comes as a lump sum. With 40% in the annuity the pension doubles to ₹10,833 and the lump sum falls to ₹30 lakh.

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Questions

How much do I need to retire?

A common rule is 25 times your yearly spending at retirement (the 4% rule). Use this page to see whether your monthly saving gets there.

How is NPS pension calculated?

At exit, at least 20% of the corpus (40% for government staff) buys an annuity. Monthly pension = annuity amount × annuity rate ÷ 12. ₹40 lakh at 6% pays about ₹20,000 a month.

What return does NPS give?

Equity-heavy NPS schemes have returned about 9% to 12% a year over the long run. Returns are not guaranteed.

Why show today's money?

₹1 crore in 30 years will buy far less than it does now. At 6% inflation it is worth about ₹17 lakh in today's money.

How much of my NPS must buy an annuity now?

For non-government subscribers, at least 20% at normal exit since December 2025, so up to 80% can be a lump sum. For government employees it is still at least 40%.

Can I withdraw my whole NPS corpus?

Non-government subscribers can if the corpus is ₹8 lakh or less at normal exit. Between ₹8 lakh and ₹12 lakh, up to ₹6 lakh can be taken as a lump sum.

What is the 4% rule?

Withdraw about 4% of the corpus in the first year and raise it with inflation. Historically that has lasted about 30 years with a balanced portfolio. It is a rule of thumb, not a guarantee.