NPS Calculator - National Pension System
Calculate NPS corpus and monthly pension at retirement. Plan your retirement with National Pension System.
About this calculator
The National Pension System is a market-linked retirement scheme regulated by PFRDA. You contribute regularly, the money is invested across equity, corporate bonds and government securities, and at retirement part of the corpus is paid out as a lump sum and the rest buys an annuity that pays a monthly pension.
This calculator projects your corpus from a monthly contribution, your age, retirement age and an assumed return. It then splits the corpus into a lump sum and an annuity and estimates the monthly pension at the annuity rate you enter. Under the revised exit rules, non-government subscribers must put at least 20% of the corpus into an annuity, so the tool lets you choose the annuity share instead of assuming a fixed split.
How to use it
- Enter your Monthly Contribution.
- Enter your Current Age and choose a Retirement Age.
- Enter the Expected Annual Return and the Expected Annuity Rate.
- Choose the Share used to buy annuity. The default is the 20% minimum for non-government subscribers.
- Press Calculate NPS and read the corpus, lump sum, annuity and monthly pension.
How the corpus and pension are worked out
Corpus = P × [((1 + i)n − 1) ÷ i] × (1 + i) with i the monthly return and n the months to retirement. Annuity corpus = Corpus × annuity share, Lump sum = Corpus − annuity corpus and Monthly pension = Annuity corpus × annuity rate ÷ 12. Pension is an estimate. Actual annuity rates depend on the insurer and your option.
Worked example
₹5,000 a month from age 30 to 60, 10% return, 6% annuity rate, 20% annuity
| Total invested | ₹18,00,000 |
| Estimated corpus | ₹1,13,96,627 |
| Lump sum (80%) | ₹91,17,301 |
| Annuity corpus (20%) | ₹22,79,325 |
| Monthly pension | ₹11,397 |
If you choose a 40% annuity the pension doubles to about ₹22,793 a month and the lump sum drops to ₹68,37,976. The split is a trade between cash now and income for life.
Tips and common mistakes
- Contributions up to ₹50,000 a year under Section 80CCD(1B) give an extra deduction in the old tax regime.
- Employer contributions under Section 80CCD(2), up to 14% of basic salary in the private sector, are deductible in both regimes.
- Check the latest PFRDA exit rules before you retire. They have been revised recently and may change again.
- A higher annuity share gives a higher pension but less cash. Plan around the income you actually need.
- Annuity income is taxable at your slab rate. The lump sum withdrawal is tax-free up to the limits in force.
Frequently asked questions
How much of NPS can I withdraw at 60?
Under PFRDA's revised rules, non-government subscribers can take up to 80% as a lump sum and must use at least 20% to buy an annuity. Government employees must still annuitise 40%. Confirm current rules with PFRDA or your pension fund manager.
What return should I assume?
Equity-heavy NPS tiers have delivered roughly 10 to 12% over long periods, but it varies. Use 8 to 10% for a conservative plan.
What is the annuity rate?
It is the yearly income an insurer pays per rupee of annuity corpus. Rates have been around 5 to 7%, depending on the plan and age.
Is the pension guaranteed?
The annuity payout is fixed by the insurer once you buy the plan. The corpus before that depends on market performance.
What is the tax benefit of NPS?
Up to ₹1.5 lakh under Section 80C along with other items, an extra ₹50,000 under 80CCD(1B) in the old regime, and employer contributions under 80CCD(2) in both regimes.
Can I retire earlier than 60?
You can exit after five years or at 60, but premature exit rules require a larger annuity share. Check current rules.