Find out exactly how much pension and lump sum your NPS contributions can build
Enter your monthly contribution, your age, and an expected return rate — this NPS calculator instantly shows your total corpus at 60, how much you can withdraw tax-free, and what your monthly pension could look like. No spreadsheet, no guesswork.
How to use this NPS calculator
- Your current age — the calculator works out how many years you have left until 60 (the normal NPS exit age).
- Monthly contribution (₹) — what you put into your NPS Tier-I account every month.
- Expected return rate (%) — a realistic long-term figure is 8–11% per year for an Aggressive or Moderate lifecycle fund. The default is 10%.
- Annuity rate (%) — the rate your insurance company is likely to pay on the annuity portion. 5–7% is a common range today; the default is 6%.
- Hit Calculate — you get your total corpus, the 60% lump-sum (tax-free), the 40% annuity purchase price, and the estimated monthly pension.
Worked example — NPS corpus and pension at 60
Meet Priya, aged 30, who puts ₹5,000 a month into NPS Tier-I. She has 30 years until 60 and expects a 10% annual return. Her insurance company offers a 6% annuity rate.
- Total NPS corpus at 60: ≈ ₹1.13 crore
- Lump sum (60% withdrawal, tax-free): ≈ ₹67.8 lakh
- Annuity purchase (mandatory 40%): ≈ ₹45.2 lakh
- Monthly pension estimate: ≈ ₹22,600 per month (at 6% annuity rate on ₹45.2 lakh)
If Priya also claims the extra ₹50,000 deduction under Section 80CCD(1B) every year, she reduces her taxable income by an additional ₹50,000 on top of the ₹1.5 lakh 80C limit — saving roughly ₹15,000 a year in tax (at a 30% slab). That tax saving, reinvested, can meaningfully boost her overall retirement picture.
Returns are indicative and not guaranteed. Actual figures depend on fund performance and the annuity rate at exit.
How the NPS corpus is calculated
NPS uses standard future value of an annuity math — compounding your monthly contributions at the expected annual return over your investment horizon.
Future Value (FV) = P × [((1 + r)^n – 1) / r] × (1 + r)
Where:
P = monthly contribution (₹)
r = monthly rate = annual rate ÷ 12
n = total months of investmentOnce the total corpus (FV) is known, the split is straightforward:
| Component | Percentage | Tax treatment |
|---|---|---|
| Lump-sum withdrawal | Up to 60% | Completely tax-free |
| Annuity purchase | At least 40% | Purchase is tax-free; pension income is taxable as per your slab |
The monthly pension is then estimated as: (Annuity amount × Annuity rate) ÷ 12. For example, ₹45 lakh at 6% gives ₹2,70,000 a year, or ₹22,500 a month.
NPS rules and limits for FY 2025-26 / AY 2026-27
- Who can join: Indian citizens aged 18–70 (OCI holders are also eligible for NPS Tier-I).
- Minimum contribution: ₹500 per month or ₹1,000 per year for Tier-I.
- Exit age: 60 years (superannuation). Early exit rules differ and are more restrictive.
- Mandatory annuity: At least 40% of the corpus must be used to buy a life annuity from a PFRDA-empanelled insurer.
- Tax deduction — Section 80CCD(1): Up to 10% of salary (for salaried) or 20% of gross income (for self-employed), within the overall ₹1.5 lakh Section 80C ceiling.
- Extra deduction — Section 80CCD(1B): An additional ₹50,000 per year, completely over and above the ₹1.5 lakh 80C limit. This is exclusive to NPS and is one of the best available tax-saving levers.
- Employer contribution — Section 80CCD(2): Up to 14% of salary (Central Govt employees) / 10% of salary (others) is deductible — this does NOT count toward the ₹1.5 lakh cap either.
- Tax-free lump sum: The 60% withdrawal at 60 is fully exempt under Section 10(12A).
- Pension income: Monthly pension received from the annuity is taxable as income in the year you receive it.
- New tax regime (FY 2025-26): The 80CCD(1) and 80CCD(1B) deductions are not available under the new regime. The employer's 80CCD(2) deduction is still available under the new regime.
For the official rules, see the NPS Trust (npstrust.org.in) and the Income Tax Department (incometax.gov.in).
Practical tips — get more from your NPS planning
- Start early, even with a small amount. Compounding rewards time more than size — starting at 25 with ₹3,000/month beats starting at 35 with ₹6,000/month in most scenarios.
- Always claim the ₹50,000 80CCD(1B) deduction if you are on the old tax regime. It is separate from 80C and many people forget it.
- Choose the right lifecycle fund. Aggressive LC-75 holds more equity (up to 75%) — better for younger subscribers. Moderate LC-50 and Conservative LC-25 shift more to bonds as you age. A higher equity mix generally means a higher realistic return assumption.
- Don't assume 12% returns. Equity NPS funds have historically returned 9–11% over long horizons. Using 10% in the calculator is a reasonable middle ground; avoid over-optimistic inputs.
- The pension is taxable — factor that into your retirement income plan. The lump-sum at 60 is tax-free, but monthly pension from the annuity is not.
- Partial withdrawal is allowed — up to 25% of your own contributions after 3 years, for specific purposes (illness, education, home). The calculator shows the full corpus assuming no early withdrawals.
A note on privacy
Everything you enter stays on your device. This calculator runs entirely in your browser — no numbers are sent to any server or stored anywhere. You can use it freely without sharing any personal financial information.
Start with the calculator above, plug in your actual monthly contribution, and you will know your projected NPS corpus and monthly pension in under a minute — one of the clearest views you can get of your retirement savings.