The concept
What this models
The National Pension System is a market-linked retirement account. This calculator estimates only the accumulation phase — the balance you might build by a target year — under a constant assumed annual return.
It does not model the mandatory annuitization of a portion of the corpus at exit, annuity payout rates, fund manager or asset-allocation choices, or NPS-specific tax treatment.
The method
How the calculation works
The current balance and monthly contributions are each compounded monthly at the assumed rate using a standard future-value formula, the same convention used for the site's general retirement calculator.
B is the current balance, C is the monthly contribution, r is the monthly assumed rate and n is the number of months.
Worked example
A neutral example
Starting from a ₹2,00,000 balance and contributing ₹5,000 a month at an assumed 9% annual return for 25 years produces an illustrative accumulated value at the end of that period.
This example explains the method. It does not recommend a financial action or predict an outcome.
Frequently asked
NPS Calculator questions
Does this include the mandatory annuity purchase at retirement?+
No. NPS rules typically require using part of the corpus to buy an annuity at exit; this calculator estimates only the accumulated corpus, not the resulting pension income.
Is 9% a guaranteed NPS return?+
No. NPS returns are market-linked and vary by the fund and asset allocation chosen. 9% is only a starting assumption.
Does this model NPS tax benefits?+
No. Contribution and withdrawal tax treatment is not modelled here.