NPS Calculator

What does this calculator estimate?

It projects your NPS Tier-I corpus at retirement, then splits it between the mandatory annuity purchase (minimum 20%, or 40% for government subscribers) and the lump-sum withdrawal. From the annuity portion, it estimates the monthly pension at the rate you specify.

The corpus projection uses the same compounding math as a monthly SIP — contributions grow at the assumed return rate through the accumulation phase. All output figures are estimates; actual results depend on fund performance, which is not guaranteed.

• Minimum 20% annuitized at retirement (40% for government subscribers). PFRDA rule since December 2025 — the rest is withdrawn as a lump sum, of which up to 60% of the corpus is tax-exempt.
• Retirement age: 60–85. You can stay invested up to age 85 under PFRDA's December 2025 amendment. The calculator accepts any age in this range.
• Lump sum is tax-free; pension is taxable. Section 10(12A) exempts the lump sum. Monthly annuity payments are taxable as income in the year received.
• Extra ₹50,000.00 tax deduction under 80CCD(1B). Available under the Old Regime only — over and above the standard₹1,50,000.00 Section 80C limit. An effective incentive unique to NPS.

Worked Example — ₹5,000/month, age 30 to 60, 10% return

Common Mistakes to Avoid

• The minimum annuity is now 20% for non-government subscribers, 40% for government subscribers. Since PFRDA's December 2025 amendment, non-government subscribers must use at least 20% of the corpus to buy an annuity (it was 40% before); government subscribers still need 40%. Choosing a higher annuity percentage reduces the lump sum but increases the monthly pension.
• The corpus estimate is highly sensitive to the assumed return rate. NPS equity funds have historically returned 10–14%, but this is not guaranteed. A small difference in the assumed rate over 30 years produces a very large difference in the projected corpus — treat the calculator output as a planning range, not a promise.
• Up to 60% of the corpus is a tax-exempt lump sum; the monthly pension is taxable. A lump-sum withdrawal of up to 60% of the corpus at retirement is exempt from income tax. If you withdraw more than 60% (non-government subscribers may take up to 80%), the part above 60% is added to your income and taxed at your slab rate in the year of withdrawal. However, the monthly pension received from the annuity is taxable in the year of receipt as 'Income from Other Sources' — it is not treated like a PPF maturity payout.
• Tier I and Tier II have different withdrawal and tax rules. Tier I (mandatory) has the minimum annuity requirement and offers 80CCD tax deductions. Tier II (voluntary) is a savings account with no lock-in and no tax benefits — this calculator only models the Tier I accumulation phase.

References

• Pension Fund Regulatory and Development Authority (PFRDA) — NPS rules
• Income Tax Act, 1961 — Section 10(12A) tax-free lump sum, Section 80CCD deductions