NPS (National Pension System) Calculator

The NPS calculator uses standard monthly compounding formulas for systematic investments: 1. **Total Accumulated Corpus (FV)**: $$\text{Corpus} = P \times \frac{(1 + r)^n - 1}{r} \times (1 + r) + C \times (1 + r)^n$$ Where: - $P$ is the monthly contribution amount. - $r$ is the monthly expected return rate: $$r = \frac{\text{Expected Annual Return}}{12 \times 100}$$ - $n$ is the total number of months: $$n = (\text{Retirement Age} - \text{Current Age}) \times 12$$ - $C$ is your current accumulated NPS balance. 2. **Lump Sum vs Annuity Split**: - **Annuity Corpus**: $$\text{Annuity Corpus} = \text{Total Corpus} \times \frac{\text{Annuity Percentage}}{100}$$ *(A statutory minimum of 40% is required to be reinvested into an annuity).* - **Lump Sum Corpus**: $$\text{Lump Sum Corpus} = \text{Total Corpus} - \text{Annuity Corpus}$$ 3. **Estimated Monthly Pension**: $$\text{Monthly Pension} = \frac{\text{Annuity Corpus} \times \text{Expected Annuity Rate}}{12 \times 100}$$