NPS Calculator
Two different numbers matter here and most calculators blur them: the corpus you build, and the pension it buys. PFRDA requires at least 40% of the corpus to purchase an annuity; the rate that annuity pays is whatever an insurer quotes on the day.
What you enter
- Monthly contribution
- Years until 60
- Expected annual return — Yours to choose. Sansara does not suggest a rate — the number you pick decides everything below it.
- Share used to buy an annuity — PFRDA requires a minimum of 40%. Anything lower is raised to the floor and you are told.
- Annuity rate — Set by the insurer you buy from, not by Sansara.
What it tells you
- Monthly pension
- Corpus at 60
- Lump sum you can withdraw
- Amount buying the annuity
- Total contributed
How this is worked out
Contributions compound monthly at your assumed return. At 60 the corpus splits: the annuity share (at least 40%, a PFRDA rule) buys a pension at your assumed annuity rate; the rest is withdrawable.
What it cannot know
- This is arithmetic on the numbers you entered — not a forecast, not a promise, and not a view on any fund or stock.
- Real returns vary year to year and can be negative. A single average rate cannot show that.
- Taxes, exit loads, fund expenses and inflation are not applied unless a field above asks for them.
- NPS returns depend on your chosen asset allocation and fund manager, and change over time.
- Annuity rates vary by provider and by the annuity option you choose. The pension figure is only as good as the rate you entered.
Questions
Why must 40% buy an annuity?
It is a PFRDA rule, not a Sansara preference. If you enter less, the calculator raises it to 40% and says that it did — it does not quietly compute a number the law does not allow.
Is the lump sum taxable?
The lump-sum withdrawal at 60 is currently exempt up to the prescribed limit; the annuity income is taxed as income in the year you receive it. Confirm the position that applies to you.
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Sansara is not a SEBI-registered investment adviser or research analyst. This page performs arithmetic on numbers you enter and does not recommend any security, scheme or course of action.