Pension Calculator
Calculate your projected pension corpus and monthly retirement income from current savings and contributions.
Projected Balance
₹13,50,791
At retirement
Monthly Pension
₹4,503
4% withdrawal rule
Annual Pension
₹54,032
4% of balance
Total Contributions
₹3,15,000
You + employer
Employer Match
₹3,000
Per year
Last updated: March 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
Pension planning is about small numbers compounding over decades, and this calculator projects how your salary-based contributions could grow by retirement. Government employees covered by NPS, private-sector workers investing in NPS or PPF, and professionals topping up their retirement fund can all use it: enter your current age, retirement age, annual salary, contribution rate, any employer match and expected return, and it shows the corpus and an estimated monthly pension under the 4% rule. The tool is especially useful during annual salary reviews, when you can see how a 1% higher contribution rate changes the retirement number. Expected returns are assumptions — the result is an estimate, not a guarantee. Self-employed professionals without an employer contribution can set the match to zero and compare PPF, NPS and mutual-fund assumptions side by side. The earlier you run the numbers, the smaller the yearly outlay needed, which is why starting at 25 versus 35 changes the answer dramatically.
How to Use This Calculator
- Step 1: Enter your current age and your planned retirement age.
- Step 2: Enter your current annual salary.
- Step 3: Enter your contribution rate and any employer match — NPS and EPF percentages fit here.
- Step 4: Enter the expected annual return, then read the projected corpus and the monthly pension under the 4% withdrawal rule.
Worked Example
A 30-year-old earning ₹6,00,000 a year contributing 10% of salary with a matching 10% employer contribution adds ₹1,20,000 a year to the pension pool — ₹10,000 a month. Over 30 years at a 10% expected return, the calculator projects a corpus of about ₹2.26 crore and a monthly pension of about ₹75,350 under the 4% withdrawal rule. Of the corpus, ₹36 lakh is contributions and the rest is compounding; real returns, salary growth and inflation will all change the outcome.
Tips and Common Mistakes
- •Tip 1: The 4% rule is a common retirement planning heuristic — it assumes the corpus earns more than it pays out each year.
- •Tip 2: For NPS and EPF, use the actual contribution percentages on your salary to keep the projection realistic.
- •Tip 3: Re-run the tool when your salary or contribution rate changes — small rate differences compound into crores over decades.
- ✗Mistake 1: Entering your CTC instead of the basic-plus-allowance base on which pension contributions are actually calculated.
- ✗Mistake 2: Treating the projected corpus as guaranteed — the expected return you enter is an assumption, not a promise.
Frequently Asked Questions
What is the 4% withdrawal rule?
It says you can withdraw about 4% of your corpus in the first year of retirement, adjusted for inflation after that, without running out over a 30-year retirement. To find the monthly pension, multiply the corpus by 4% and divide by 12 — a ₹1 crore corpus gives about ₹33,333 a month.
How is NPS different from EPF for retirement?
EPF pays a government-announced interest rate on your 12% + 12% contributions and is tax-free on withdrawal. NPS is market-linked, lets you choose equity exposure, and gives an extra tax deduction of up to ₹50,000 under Section 80CCD(1B) beyond the ₹1.5 lakh 80C limit.
Can I withdraw my NPS corpus before 60?
Yes, with restrictions: partial withdrawals up to 25% of your own contributions are allowed after 3 years for specified needs like children's education or house purchase. Exiting before 60 requires buying an annuity with most of the corpus, so early exit is rarely a good idea.
How much should I contribute to my pension fund each month?
A common starting point is 10–15% of your take-home salary. Because compounding does the heavy lifting, starting at 25 instead of 35 can cut the required monthly contribution by roughly half for the same retirement corpus.
What return should I assume for retirement planning in India?
Use a conservative blended rate of 8–10% if your corpus is invested in a mix of NPS, mutual funds and debt. The projection is only as good as this assumption — re-run the calculator every year as your salary and returns change.
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