NPS Annuity Calculator

Estimate the fixed monthly pension you'll receive by annuitizing your NPS annuity corpus over a chosen payout period.

Free to use
No registration required
Works on all devices

Last updated: 13-09-2026

Enter your NPS annuity corpus, expected annuity rate, and payout period to estimate your fixed monthly pension.

NPS annuity corpus *

₹

The portion of your NPS corpus used to purchase an annuity (at least 40% by rule).

Expected annuity rate *

Payout period (years) *

years

A notional period used to convert the annuity into a level monthly payout — real annuities are typically paid for life.

Your result

₹14,328.62

Estimated monthly pension

Total payout over the period₹34,38,868.80

Total interest earned during payout₹14,38,868.80

AI explanation

Formula

Uses the same amortization math as a loan EMI, applied in reverse — a fixed periodic payment that fully draws down the corpus (plus interest) over the payout period

Worked example

₹20,00,000 corpus, 6% rate, 20-year payout

Worked example: ₹20,00,000 corpus, 6% rate, 20-year payout
Field	Value
NPS annuity corpus	₹20,00,000
Expected annuity rate	6
Payout period (years)	20
Estimated monthly pension	₹14,328.62
Total payout over the period	₹34,38,868.80
Total interest earned during payout	₹14,38,868.80

Assumptions

Real NPS annuities are typically paid for the subscriber's (and often the spouse's) entire life, not a fixed number of years — this calculator uses a notional payout period as an approximation.
Assumes a constant annuity rate for the whole payout period; actual annuity rates are declared by the chosen PFRDA-empanelled annuity service provider (ASP) and product.

Frequently asked questions

How much of my NPS corpus must go toward an annuity?

At least 40% by rule for Tier I accounts (100% if your total corpus is below the small threshold PFRDA specifies for lump-sum-only exit) — the rest can be withdrawn as a tax-free lump sum.

Is the NPS annuity pension amount guaranteed for life?

Yes, once purchased from a PFRDA-empanelled annuity service provider — the actual monthly amount depends on the annuity plan chosen (e.g. with/without return of purchase price, single/joint life) and the ASP's rates at the time of purchase.

Is NPS annuity income taxable?

Yes, the monthly annuity/pension income is taxed as regular income in the year it's received, at your applicable income tax slab rate.

Related calculators

Sources

National Pension System — annuity/exit rules — Pension Fund Regulatory and Development Authority (PFRDA). Effective 01-02-2015, checked 13-09-2026.

Page last updated 13-09-2026.

This is a simplified estimate using a notional fixed payout period, for illustration only. Real NPS annuity amounts are quoted by PFRDA-empanelled annuity service providers based on their own actuarial tables and are typically paid for life, not a fixed term.

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