NPS Annuity Calculator

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

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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	2000000
Expected annuity rate	6
Payout period (years)	20
Estimated monthly pension	14328.62
Total payout over the period	3438868.8
Total interest earned during payout	1438868.8

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.
Informational only — does not represent a specific ASP's quoted pension amount.

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(100% if your total corpus is below the small threshold PFRDA specifies for lump-sum-only exit) — the rest can be withdrawn as a tax-free lump sum.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, reviewed 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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