Estimate the yearly pension a lump sum could buy at an annuity rate you enter, and the monthly figure it implies.
How to use it. Enter the amount you will use to buy an annuity. Under NPS this is the part of the corpus that must be annuitised at exit: at least 20% for most non-government subscribers with a corpus above ₹12 lakh under the December 2025 exit rules, and at least 40% for government subscribers. Then enter the annuity rate quoted by an annuity service provider for the option you are considering. Rates differ by age, option (life annuity, joint life, return of purchase price) and the interest rate environment, so the default 6.5% is only an illustration. In the third box add other fixed yearly pension income, such as an EPS pension of ₹3,000 a month (₹36,000 a year).
Formula. Yearly pension = purchase price × annuity rate ÷ 100 + other pension. Divide by 12 for a monthly figure. The second output has no special meaning for a lifetime annuity and is shown only for reference.
Worked example (illustrative). ₹10,00,000 at 6.5% buys ₹65,000 a year. With ₹36,000 of EPS pension the total is ₹1,01,000 a year, about ₹8,417 a month before tax.
Limits. Annuity income is taxable as income in the year received. Options with return of purchase price pay a lower rate. The quote you get on the day of purchase is what counts. See the annuity options guide.
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