NPS Annuity Calculator (Pension Payouts & ASP Plans)

Calculate the monthly, quarterly, or annual pension payout from your NPS annuity corpus. Compares standard Annuity Service Provider (ASP) options, including Return of Purchase Price (ROP) and Joint Life spouse coverage.

A ₹50,00,000 NPS annuity corpus invested at 6.25% in a Life Annuity with ROP generates ₹26,042 gross monthly pension, with 100% of the principal refunded to your nominee upon demise.

Annuity Corpus & Frequency

Calculate regular lifelong pension payouts from PFRDA empaneled Annuity Service Providers.

Annuity Corpus Transferred to Insurer

₹

Pension Payout Frequency

Your Post-Retirement Income Tax Slab (%)

Annuity pensions are treated as regular taxable income.

Comparison of Standard Annuity Options

Life Annuity with Return of Purchase Price (ROP)

6.25% p.a.

Monthly Pension: ₹26,042

Nominee Return: ₹50,00,000

Fixed monthly pension for the subscriber's entire lifetime. Upon demise, 100% of the invested corpus is refunded to the registered nominee.

Life Annuity without Return of Purchase Price

7.5% p.a.

Monthly Pension: ₹31,250

Nominee Return: None

Higher lifelong pension payout. However, pension ceases upon demise of the subscriber and the initial corpus is retained by the insurer.

Joint Life Annuity with 100% Spouse Pension & ROP

6% p.a.

Monthly Pension: ₹25,000

Nominee Return: ₹50,00,000

Lifelong pension for subscriber. On demise, 100% pension continues to spouse for life. On spouse demise, full corpus is returned to nominee.

Pension PayoutMONTHLY

Gross Pension (monthly)

₹26,042

Net Post-Tax In-Hand: ₹20,625

Annual Pension

₹3,12,500

Gross cash flow

Tax Deduction

₹5,417

At 20% slab + cess

Annuity Benchmark Rate

6.25%

Life with ROP

Principal Safety

100% Refunded

Returned to nominee

Taxability Rule:

Annuity pensions received from PFRDA empaneled Annuity Service Providers (ASPs) are treated as regular taxable income and taxed at your applicable slab rate.

Gross Pension (monthly)

₹26,042

Net Post-Tax: ₹20,625

Pension rates are indicative based on prevailing PFRDA empaneled ASP quotation ranges.

What it is:: A dedicated pension payout calculator for the annuity component of the National Pension System.
What it calculates:: Monthly, quarterly, and annual gross pension streams, tax adjustments, and capital returns to nominees.

Key Assumptions

Annuity rate is locked for the entire duration of the subscriber's life.
Payout options include individual life with ROP, life without ROP, and joint life.
Pension is taxed at the subscriber's applicable income tax slab rate.

How it works

Annuity Purchase: Upon retiring from NPS, your annuity corpus is transferred directly to a PFRDA empaneled ASP (such as LIC, SBI Life, HDFC Life, or ICICI Prudential Life) without any tax deduction.

Return of Purchase Price (ROP): In this option, you receive a guaranteed pension for life. Upon your demise, 100% of the original purchase corpus is refunded to your nominee.

Joint Life Annuity: Pension continues to you for life. After your demise, 100% of the pension continues to your surviving spouse for life, followed by refund of purchase price to children.

Taxation: Annuity payouts are added to your regular taxable income and taxed at your personal slab rate in the year of receipt.

Formula

Monthly Gross Pension = (Annuity Corpus × Annual Annuity Rate) ÷ 12

Annuity Corpus: = Amount allocated to annuity (minimum 40% of NPS corpus)
Annuity Rate: = Guaranteed contract rate offered by Annuity Service Provider (typically 6.0%–7.5%)
ROP: = Return of Purchase Price guaranteed to nominee upon demise

PFRDA has empaneled 15+ life insurers as Annuity Service Providers. Rates remain fixed for life once the contract is issued.

Example calculation

₹50 Lakh Annuity Corpus with Return of Purchase Price (ROP)

Invested Annuity Capital: ₹50,00,000
Benchmark Annuity Rate: 6.25% p.a.
Gross Monthly Pension: ₹26,042
Gross Annual Pension: ₹3,12,500
Capital Returned to Nominee: ₹50,00,000

Frequently asked questions

What is an Annuity Service Provider (ASP)?

An ASP is an IRDAI-registered life insurance company empaneled by PFRDA to manage annuity payouts for NPS subscribers. Leading ASPs include LIC of India, SBI Life, HDFC Life, and ICICI Prudential Life.

What is the difference between Annuity with ROP and Annuity without ROP?

With Return of Purchase Price (ROP), your family receives 100% of your initial invested corpus back after your death, but the annual pension rate is slightly lower (~6.0%–6.5%). Without ROP, you receive a higher lifelong pension (~7.2%–8.0%), but the principal is retained by the insurance company.

Is TDS deducted from NPS annuity pensions?

Yes. Annuity Service Providers deduct TDS under Section 194DA or Section 192 if the annual pension payout exceeds applicable statutory tax thresholds.

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