Is the 40% annuity compulsory?

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NPS Calculator

Estimate NPS corpus, lump-sum withdrawal, and annuity pension.

Last updated 2026-09-18

Monthly contribution₹Expected return%Years to retirementyrsAnnuity rate%

Corpus

₹1,33,78,903

Lump sum (60%)

₹80,27,342

Invested

₹30,00,000

Est. annual pension

₹3,21,094

How it works

Corpus compounds like a SIP. At retirement, 60% can be withdrawn as lump sum and 40% buys an annuity.

How to use this calculator

Enter the inputs shown above (amount, rate, tenure, income, or other fields).
Read the live results — they update as you type.
Check the formula, worked example, and assumptions on this page before you decide.

Formula

Corpus compounds like a SIP. At retirement, 60% can be withdrawn as lump sum and 40% buys an annuity.

Worked example

₹10,000 a month for 25 years at 10% can build about ₹1.33 crore. Lump sum ≈ ₹80 lakh; 40% annuity at 6% pays ~₹3.2 lakh a year.

Reading the result

Treat the output as a planning figure. Compare it with your sanction letter, payslip, or GST invoice rather than treating it as a filing or a loan offer.

See also: calculation methodology and disclaimer.

Frequently asked questions

If the corpus exceeds the exit threshold, at least 40% must buy an annuity. Rules can change — confirm at exit.

Assumptions and limits

This is a planning estimate. Your lender, employer, or tax officer may use different inputs or rounding.

Results are educational estimates, not tax, legal, investment, or medical advice, and not a loan offer. Verify filings and payments with the official authority or a qualified professional.

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