NPS (National Pension System) Calculator
Project your NPS corpus at retirement, the annuity you must buy (at least 20% of the corpus for non-government subscribers under PFRDA’s December 2025 exit rules, 40% for government employees) and the lump sum you can take. Factors in Tier-1 monthly contributions with equity/corporate-bond/G-sec mix.
Methodology. NPS Tier-1 at age 60: under PFRDA’s exit regulations as amended in December 2025, non-government subscribers with a corpus above ₹12 lakh must use at least 20% to buy an annuity and can take up to 80% as a lump sum; government employees keep the 40% annuity / 60% lump-sum split. A corpus of ₹8 lakh or less can be withdrawn in full. Up to 60% of the corpus is tax-free on withdrawal; check the tax treatment of anything above that. Annuity pension = annuity corpus × annuity rate / 12. Contribution eligible for ₹1.5L 80C + ₹50K 80CCD(1B) = total ₹2L deduction if you maxed contribution. Auto-choice lifecycle funds shift from equity to bonds as you age; returns estimated at 10–11% if young, 7–8% close to retirement.
How the projection works
The calculator compounds your monthly Tier-1 contributions at the blended return you enter until age 60. At exit, part of the corpus must buy an annuity (a lifelong pension from an insurer) and the rest can be taken as a lump sum. Pick your subscriber type above: PFRDA’s December 2025 amendment lets non-government subscribers with a corpus above ₹12 lakh take up to 80% as a lump sum, while government employees keep the 60:40 split.
Worked example
Investing ₹5,000 a month from age 30 to 60 at a 10% blended return builds about ₹1.14 crore.
| Subscriber | Lump sum | Annuity corpus | Pension at 6% annuity rate |
|---|---|---|---|
| Non-government (80:20) | ≈ ₹91 lakh | ≈ ₹22.8 lakh | ≈ ₹11,400 a month |
| Government (60:40) | ≈ ₹68 lakh | ≈ ₹45.6 lakh | ≈ ₹22,800 a month |
Taking the larger lump sum is not automatically better: annuity income is guaranteed for life, while a lump sum must be invested and managed. Many people buy more annuity than the minimum for a stable floor of income.
Tax benefits
- Old regime: up to ₹1.5 lakh under 80CCD(1) within the 80C limit, plus an extra ₹50,000 under 80CCD(1B).
- Both regimes: employer contributions under 80CCD(2) — up to 14% of basic in the new regime.
- At exit: up to 60% of the corpus is tax-free; annuity income is taxed at slab rates. Check the tax treatment before withdrawing more than 60%.
Read the full NPS guide or compare NPS with EPF and PPF in the EPF vs PPF vs NPS calculator.
FAQs
What return should I assume?
9–10% for an equity-heavy mix when young; lifecycle funds reduce equity as you age, so 8–9% overall is a cautious figure.
Can I withdraw before 60?
Partial withdrawals for specified needs are allowed after three years; a premature exit requires most of the corpus to be annuitised.
What if my corpus is small?
A corpus of ₹8 lakh or less can be withdrawn in full at exit.
Figures last checked October 2026. Calculator results are estimates; actual lender, fund or tax outcomes can differ.