Estimate your NPS corpus, the tax-free lump sum and the monthly pension the annuity will pay.
How the NPS calculator works
- Your monthly contributions compound at the expected return until retirement (default 60).
- At exit, at least 40% of the corpus must buy an annuity that pays a monthly pension for life.
- The remaining up to 60% is paid as a tax-free lump sum.
Example
₹5,000 a month from age 30 to 60 at 10%: corpus ≈ ₹1.13 crore. Lump sum (60%) ≈ ₹67.8 lakh tax-free; annuity (40%) ≈ ₹45.2 lakh paying about ₹22,600 a month at 6%.
NPS tax benefits
- Section 80CCD(1B): extra ₹50,000 deduction over the ₹1.5 lakh 80C limit (old regime).
- Section 80CCD(2): employer contribution up to 10% of basic (14% for government employees) is deductible — allowed in the new regime too.
- 60% lump sum at retirement is tax-free; pension is taxed as income.
NPS returns depend on your chosen asset mix (equity, corporate bonds, government bonds). Historic equity schemes have returned 10–13%; conservative mixes 8–9%. Annuity rates vary by provider and option.
Compare with the retirement calculator and PPF.
How to use the NPS calculator
- Enter your current age and the monthly contribution (your own, plus the employer's if you are a government or corporate NPS subscriber).
- Set the expected return — 10% for an aggressive auto choice with 75% equity, 8% for conservative.
- Choose the annuity portion (minimum 40% at age 60) and the annuity rate (6–7% from LIC/SBI Life/HDFC Life).
- Read the corpus at 60, the tax-free lump sum (up to 60%) and the estimated monthly pension.
Step-by-step: ₹5,000 a month from age 30 to 60 at 10%
- 30 years = 360 monthly contributions; monthly rate 0.833%.
- Corpus at 60: 5,000 × [((1.00833)360 − 1) ÷ 0.00833] × 1.00833 = ₹1,13,96,627 on ₹18 lakh contributed.
- Lump sum (60%): ₹68,37,976 — tax-free.
- Annuity (40%): ₹45,58,651 at 6% → pension of about ₹22,793 a month for life (a joint-life annuity with return of purchase price pays a little less).
Choosing 100% annuity instead would give about ₹57,000 a month but no lump sum; choosing the minimum 40% gives flexibility — you can invest the 60% in an SWP for a higher, inflation-adjusted income.
Worked examples
| Situation | Working | Answer |
|---|
| ₹10,000 a month, age 35 to 60, 10% | 25 years | corpus ₹1,33,78,903 |
| Government employee: 10% own + 14% employer on ₹56,640 (basic + DA) for 30 years at 9% | ₹13,594 a month | corpus ≈ ₹2.5 crore |
| ₹50,000 a year (for the extra 80CCD(1B) deduction) from 40 to 60, 9% | 20 years | corpus ≈ ₹27.9 lakh |
Tips and common mistakes
- Tax: your contribution gets 80CCD(1) (within the ₹1.5 lakh 80C limit) plus an extra ₹50,000 under 80CCD(1B); employer contribution up to 14% of basic + DA is deductible under 80CCD(2) even in the new regime.
- Equity exposure in Active choice is capped at 75% and tapers after 50 in Auto choice — expect returns to fall towards 8% in the last decade.
- Partial withdrawal of 25% of your own contributions is allowed after 3 years for specified reasons (education, marriage, house, illness), up to three times.
- If the corpus is ₹5 lakh or less at 60, you can withdraw 100% as lump sum.
Sources & last reviewed
PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 as amended: at 60, at least 40% of the corpus must buy an annuity and up to 60% can be withdrawn tax-free. Returns and annuity rates are assumptions you can change above.
Official sources: PFRDA · NPS Trust
Last reviewed: 17 October 2026. Rules and rates change — if you spot something outdated, tell us and we will fix it.
Frequently asked questions
How much pension will I get from NPS?
It depends on your corpus and the annuity rate. Our example — ₹5,000/month for 30 years at 10% — gives about ₹22,600 a month at a 6% annuity rate, plus a ₹67.8 lakh lump sum.
Is the NPS lump sum tax-free?
Yes, up to 60% of the corpus withdrawn at retirement is exempt from tax. The pension from the annuity is taxable.
Can I withdraw 100% of NPS?
Only if the corpus is ₹5 lakh or less at exit. Above that, at least 40% must go into an annuity.
What is the minimum NPS contribution?
₹1,000 a year for a Tier I account (₹500 per contribution).