Retirement & long-term

NPS Calculator

National Pension System corpus. Project your NPS corpus at 60, the lumpsum you can withdraw and the monthly pension the annuity could pay.

Calculator

Your inputs
yrs
yrs
p.a.
%
minimum 40%
%
p.a.
%

Corpus at retirement

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    Total contributed
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    Estimated returns
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    Lumpsum withdrawal
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    Annuity purchase
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    Estimated monthly pension
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    View the year-by-year breakdown
    Year-by-year breakdown for the NPS Calculator

    About the NPS Calculator

    The National Pension System accumulates your monthly contributions in market-linked funds until you turn 60. At that point at least 40% of the corpus must buy an annuity that pays a monthly pension for life, and the rest can be taken as a tax-free lumpsum. This calculator projects all three numbers - total corpus, lumpsum and pension - from your contribution and expected return.

    The maths

    How the NPS corpus is built

    Corpus = C x ({[1 + i]^n - 1} / i) x (1 + i) | Pension = (Corpus x annuity share x annuity rate) / 12

    C
    Monthly contribution
    i
    Monthly return (annual rate / 12)
    n
    Months until retirement

    The annuity rate is set by the insurer at the time you buy, not by you, so treat the pension figure as indicative.

    How to use it

    Using this calculator

    1. Enter your monthly NPS contribution and current age.
    2. Set the return you expect from your chosen asset mix.
    3. Choose how much of the corpus will buy an annuity.
    4. Read the corpus, lumpsum and indicative monthly pension.
    Questions

    NPS Calculator FAQs

    How much of my NPS corpus can I withdraw at 60?

    Up to 60% can be taken as a lumpsum and is exempt from income tax. The remaining 40% must be used to buy an annuity that pays a monthly pension. You may allocate more than 40% to the annuity if you want a higher pension.

    What return should I expect from NPS?

    It depends on your asset allocation. Equity-heavy Tier I accounts have historically returned around 10-12% a year, while government-securities-heavy allocations sit closer to 7-9%. Active choice lets you cap equity at 75% until age 50.

    Is the NPS pension taxable?

    The 60% lumpsum is tax exempt on withdrawal. The monthly annuity pension is added to your income in the year you receive it and taxed at your applicable slab rate, in the same way as salary or interest income.

    What tax deduction does NPS offer?

    Under the old regime, contributions qualify under Section 80CCD(1) within the Rs 1.5 lakh 80C ceiling, plus an additional Rs 50,000 under 80CCD(1B). Employer contributions under 80CCD(2) are also available in the new regime.

    Can I exit NPS before 60?

    Premature exit is permitted after five years, but only 20% can be taken as a lumpsum and 80% must buy an annuity. The scheme is deliberately structured to discourage early withdrawal.

    Important: this calculator provides general information and arithmetic only. It is not personal financial, tax or investment advice. Projected returns are illustrations based on the rate you enter, not guarantees, and market-linked investments can fall in value. Verify current tax rates and scheme terms before acting, and consult a qualified adviser where the decision matters.