About the NPS Calculator
This NPS calculator estimates what your National Pension System (NPS) account could be worth at retirement and how it splits between a lump sum and a pension. Enter your age, monthly contribution, an optional yearly step-up and the return you expect from your chosen mix of equity, corporate bonds and government securities.
At exit, part of the corpus must be used to buy an annuity from an insurer, which pays you a monthly pension for life; the rest can be withdrawn. Under the exit regulations PFRDA amended in December 2025, non-government subscribers (All Citizen and Corporate models) must use at least 20% of the corpus for an annuity at normal exit and can take up to 80% as a lump sum, while government-sector subscribers must still annuitise at least 40%. If the corpus is ₹8 lakh or less you can withdraw all of it; between ₹8 lakh and ₹12 lakh the lump sum is capped at ₹6 lakh and the rest goes into periodic payouts or an annuity. The calculator applies these minimums automatically and never lets the annuity share fall below them.
The calculator also shows the extra tax deduction of up to ₹50,000 under Section 80CCD(1B), which is available only under the old tax regime. Only 60% of the corpus is exempt from tax when withdrawn; the Income-tax law had not been changed to match the new 80% limit when this page was reviewed, so the calculator shows any lump sum above 60% separately as potentially taxable at your slab rate. Returns are market-linked and not guaranteed; the projection uses a steady average return compounded monthly. For the ₹8–12 lakh band, the balance above the ₹6 lakh lump sum is treated as buying an annuity, although periodic withdrawals over at least six years are also allowed.
With the default inputs, the total nps corpus at exit is ₹11,302,439.62. Change any value above to recalculate instantly.
How to use the nps calculator
- 1Enter your current age and the age you plan to exit NPS (usually 60).
- 2Enter your monthly contribution and any yearly step-up.
- 3Choose an expected return based on your equity allocation — 8% to 12% is typical.
- 4Pick your subscriber type, then set the annuity share and the annuity rate insurers currently offer.
- 5Read your corpus, lump sum and estimated monthly pension.
Formula and method
Contributions are made at the end of each month and the balance compounds monthly at one-twelfth of the expected annual return. If you set a step-up, the monthly contribution rises by that percentage at the start of every year.
At exit, the annuity share a of the corpus buys a life annuity; the monthly pension is estimated as that amount times the annuity rate divided by 12. The minimum a is 20% for non-government and 40% for government-sector subscribers, 0% when the corpus is ₹8 lakh or less, and whatever keeps the lump sum at or below ₹6 lakh when the corpus is between ₹8 lakh and ₹12 lakh. The rest is the lump sum, which is tax-free up to 60% of the corpus. The 80CCD(1B) saving is your annual contribution (up to ₹50,000) times your tax slab, before the 4% cess.
- C
- Monthly contribution
- r
- Expected annual return
- a
- Share of corpus used to buy an annuity
Worked examples
₹5,000 a month from age 30 to 60 at 10% (non-government)
Investing ₹60,000 a year for 30 years (₹18 lakh) grows to about ₹1.13 crore at 10%. Using the 20% minimum for an annuity at 6% gives a pension near ₹11,300 a month, and the other 80% (about ₹90.4 lakh) can be withdrawn — of which the slice above 60% of the corpus, about ₹22.6 lakh, is not covered by the tax exemption.
₹10,000 a month with a 5% annual step-up from 35
Raising ₹10,000 by 5% each year for 25 years means about ₹57.3 lakh invested, growing to about ₹1.72 crore at 9%. Choosing to annuitise 40% at 6.5% pays about ₹37,250 a month and keeps the lump sum within the 60% tax-free limit. At a 30% slab the ₹50,000 80CCD(1B) deduction saves ₹15,000 of tax a year under the old regime.
Government employee who asks for only 20% annuity
Government-sector subscribers must still annuitise at least 40%, so the calculator raises the 20% request to 40%: ₹45.2 lakh buys an annuity paying about ₹22,600 a month at 6%, and ₹67.8 lakh (exactly 60%) is the tax-free lump sum.
Small corpus: ₹3,000 a month from 50 to 60
Ten years of ₹3,000 a month at 10% builds about ₹6.15 lakh. Because the corpus is under ₹8 lakh, the whole amount can be withdrawn without buying an annuity. Only 60% is covered by the tax exemption, so about ₹2.46 lakh is flagged as potentially taxable.
Frequently asked questions
How much pension will I get from NPS?+
It depends on the corpus you use for an annuity and the annuity rate. For example, ₹40 lakh annuitised at 6% pays about ₹20,000 a month. Rates vary by insurer, annuity type and your age.
How much of my NPS corpus can I withdraw at 60?+
Since PFRDA’s December 2025 amendment, non-government subscribers can take up to 80% as a lump sum and must annuitise at least 20%; government-sector subscribers still need at least 40% in an annuity. A corpus of ₹8 lakh or less can be withdrawn in full, and between ₹8 lakh and ₹12 lakh up to ₹6 lakh can be taken as a lump sum.
Is the full 80% NPS lump sum tax-free?+
Not necessarily. The Income-tax exemption covers a lump sum of up to 60% of the corpus. When this page was reviewed the law had not been amended for the extra 20% now allowed to non-government subscribers, so that slice may be taxed at your slab rate. Check the latest position before you withdraw.
What returns does NPS give?+
NPS returns are market-linked. Equity schemes have historically delivered around 10%–13% a year over long periods and government bond schemes around 8%–9%, but past returns are not guaranteed.
Is NPS eligible for tax deduction under the new regime?+
Under the new tax regime only the employer’s contribution under Section 80CCD(2) is deductible. The extra ₹50,000 deduction under 80CCD(1B) and your own contribution under 80CCD(1) apply only under the old regime.
Is the NPS pension taxable?+
Yes. The monthly annuity income is added to your income and taxed at your slab rate in the year you receive it. The lump-sum withdrawal at exit is tax-free within the permitted limit.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.