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NPS Calculator

Estimate how much the National Pension System could give you at retirement. Enter your monthly contribution, age and expected return to see the corpus at 60, the lump sum you can withdraw, how much of it is tax-free and your monthly pension from the annuity, under the exit rules from December 2025.

How to use this calculator

  1. Enter how much you will put into NPS every month, including any employer contribution.
  2. Enter your current age and the age you plan to exit, 60 or later.
  3. Choose an expected return. Portfolios with more equity have returned more over long periods.
  4. Set the share that buys an annuity (at least 20%) and an annuity rate to see your pension.

Formula

Corpus = Σ monthly contributions grown at r ÷ 12 · Pension = Corpus × annuity share × annuity rate ÷ 12

r
expected annual return before retirement
annuity share
at least 20% of the corpus for private-sector subscribers
annuity rate
yearly payout per ₹100 offered by the insurer

Up to 60% of the corpus is tax-free; any further lump sum and the pension are taxable.

Worked example

₹5,000 a month from age 30 to 60, at 10% a year, with the minimum 20% annuity at a 6% annuity rate.

  1. Total invested₹18,00,000
  2. Corpus at 60about ₹1,13,96,627
  3. Lump sum (80%)about ₹91,17,301, of which ₹68,37,976 is tax-free
  4. Annuity (20%)about ₹22,79,325

You could take about ₹91 lakh as a lump sum and get a pension of about ₹11,397 a month.

What you get at 60 under the new rules

PFRDA changed the exit rules for non-government subscribers in December 2025. At normal exit, at least 20% of the corpus must buy an annuity, which pays a monthly pension for life, and up to 80% can be taken as a lump sum. Earlier the annuity had to be at least 40%. If the whole corpus is ₹8 lakh or less, you can withdraw all of it.

You can also stay invested longer, up to age 85, and take the lump sum in instalments instead of all at once.

Tax on NPS money

60% of the corpus can be withdrawn tax-free at exit. The extra 20% that the new rules allow as a lump sum is taxable as income, unless the tax law changes. The annuity itself is tax-free when bought, but the pension it pays is taxed at your slab rate every year.

Contributions save tax too. In the old regime, your own contribution counts towards the ₹1.5 lakh 80C limit, plus an extra ₹50,000 deduction. In both regimes, your employer's contribution is deductible up to 14% of basic pay in the new regime and 10% in the old. The income tax calculator shows what that saves you, and the salary calculator suggests how to restructure your CTC.

Choosing an expected return

NPS invests in a mix of equity, corporate bonds and government bonds. With active choice you can hold up to 75% in equity; auto choice reduces equity as you get older. Long-term returns of 9% to 11% a year have been common for mixed portfolios, but past returns are not a promise, so try a lower figure as well.

Compare NPS with the PPF calculator for guaranteed, tax-free savings, or with a SIP if you want money you can use before 60.

Things to keep in mind

  • Government employees follow different rules: at least 40% of the corpus must buy an annuity.
  • Leaving NPS before 60 normally requires at least 80% of the corpus to buy an annuity.
  • Annuity rates depend on your age at purchase and the plan you choose; the pension here is an estimate.

Frequently asked questions

How much NPS lump sum can I withdraw at 60?

Up to 80% of the corpus for private-sector and other non-government subscribers, under the PFRDA rules from December 2025. At least 20% must buy an annuity. If the corpus is ₹8 lakh or less, you can withdraw all of it.

Is the NPS lump sum tax-free?

Up to 60% of the corpus is tax-free. The additional 20% now allowed as a lump sum is taxable as income, and the monthly pension from the annuity is taxed at your slab rate.

How much pension will I get from NPS?

It depends on how much of the corpus buys an annuity and the annuity rate. At 6%, every ₹10 lakh of annuity pays about ₹5,000 a month. Use the annuity share and rate fields above to try different options.

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