NPS Calculator
Estimate your National Pension System corpus at retirement, how much of it you can take as a lump sum, and the monthly pension the rest will buy. Enter your monthly contribution, your age and an expected return.
More options: exit age, employer contribution, pension
Contributing ₹5,000 a month for 30 years at 10% builds about ₹1.14 Cr by age 60. With a corpus above ₹12 lakh, you can take up to 80% as a lump sum; at least 20% must buy an annuity (pension).
Assumes the same contribution every month and a steady return; actual NPS returns go up and down with the market. The pension is taxable as income. Exit rules are for non-government subscribers (PFRDA, December 2025).
Growth every 5 years
| Age | Contributed | Value |
|---|---|---|
| 35 | ₹3,00,000 | ₹3,90,412 |
| 40 | ₹6,00,000 | ₹10,32,760 |
| 45 | ₹9,00,000 | ₹20,89,621 |
| 50 | ₹12,00,000 | ₹38,28,485 |
| 55 | ₹15,00,000 | ₹66,89,452 |
| 60 | ₹18,00,000 | ₹1,13,96,627 |
What is NPS?
The National Pension System (NPS) is a government-regulated retirement scheme run by PFRDA. You contribute regularly to a Tier I account; the money is invested in a mix of equity, corporate bonds and government bonds that you choose. When you exit, normally at 60, you can take part of the corpus as a lump sum and must use the rest to buy an annuity, which pays you a monthly pension for life.
How the corpus is calculated
Corpus = M × [(1 + r)n − 1] ÷ r × (1 + r)
- M = monthly contribution (yours plus your employer’s)
- r = expected yearly return ÷ 12 ÷ 100
- n = number of months until you exit
Worked example
₹5,000 a month from age 30 to 60 (360 months) at an assumed 10% a year:
- Corpus at 60 = ₹1,13,96,627, from ₹18,00,000 contributed
- Lump sum (80%) = ₹91,17,301, of which ₹68,37,976 (60% of the corpus) is tax-free and ₹22,79,325 is taxable
- Annuity (20%) = ₹22,79,325, which at 6% pays about ₹11,397 a month
The return matters a great deal over 30 years: at 8% the same contributions give about ₹75 lakh, and at 12% about ₹1.76 crore. Try a few rates rather than relying on one.
Withdrawal rules at exit
| Corpus at exit (non-government) | What you can do |
|---|---|
| ₹8 lakh or less | Withdraw all of it |
| ₹8 lakh to ₹12 lakh | Up to ₹6 lakh at once; the rest via an annuity or instalments over at least 6 years |
| Above ₹12 lakh | Up to 80% as a lump sum; at least 20% buys an annuity |
These rules came into force in December 2025. Government employees must still put at least 40% of a corpus above ₹12 lakh into an annuity. You can delay your exit and stay invested up to age 85.
Tax on NPS
- Contributions (old regime): within the ₹1.5 lakh limit of Section 123 (formerly 80C), plus an extra ₹50,000 (Section 124 (formerly 80CCD(1B))).
- Employer contributions: deductible (Section 124 (formerly 80CCD(2))) up to 14% of basic + DA in the new regime, or 10% in the old regime. This is the only NPS deduction in the new regime.
- Lump sum: tax-free up to 60% of the corpus; any lump sum above that is taxed at your slab.
- Pension: taxed as income in the year you receive it.
When to use a different calculator
- Working out how much you need to retire? Use the Retirement Corpus Calculator.
- Want a guaranteed, fully tax-free option? Use the PPF Calculator.
- Central government employee choosing between NPS and UPS? Use the NPS vs UPS Calculator.
- Choosing a tax-saving investment? Read NPS vs PPF vs ELSS.
Sources
- NPS Trust: National Pension System (PFRDA)
- Pension Fund Regulatory and Development Authority (Government of India)
- Income Tax Department: Income-tax Act, 2025, rules and tax slabs (Government of India)
This is general information, not tax or investment advice. See how we check rates and our corrections log.
