What is an NPS Calculator?
An NPS calculator estimates the retirement corpus you can build through the National Pension System, along with the lumpsum you can withdraw at 60 and the monthly pension from the annuity you buy. NPS is a government-regulated, market-linked pension scheme overseen by PFRDA and open to all Indian citizens aged 18–70.
Enter your monthly contribution and expected returns to see how NPS fits into your overall retirement plan.
How to use the NPS Calculator
- 1Enter your current age and retirement age (usually 60).
- 2Enter your monthly contribution to NPS.
- 3Set the expected annual return — a mix of equity, corporate bonds and government securities has historically returned around 9–11%.
- 4Add any existing NPS balance.
- 5Choose the annuity purchase % — at least 20% for most subscribers under PFRDA's December 2025 rules (40% for government employees) — and the annuity rate to see your monthly pension.
NPS Calculation Formula
- P
- — Monthly NPS contribution
- i
- — Monthly return = annual rate ÷ 12 ÷ 100
- n
- — Months until retirement
Example: ₹5,000 a month from age 30 to 60 at 10%
| Total contribution | ₹18,00,000 |
|---|---|
| Total corpus at 60 | ₹1,13,96,627 |
| Lumpsum withdrawal (60%) | ₹68,37,976 |
| Monthly pension (40% annuity at 6%) | ₹22,793 |
NPS tax benefits
- Section 80CCD(1) — own contribution deductible up to 10% of salary, within the ₹1.5 lakh 80C limit (old regime).
- Section 80CCD(1B) — an extra ₹50,000 deduction over and above 80C (old regime).
- Section 80CCD(2) — employer contribution is deductible (up to 14% of salary in the new regime), and is available under both tax regimes.
- Up to 60% of the corpus withdrawn at retirement is tax-free; the annuity pension is taxed at your slab rate.
NPS withdrawal rules at retirement
Under PFRDA's amended exit regulations (December 2025), non-government subscribers can take up to 80% of the corpus as a lump sum at retirement and must use at least 20% to buy an annuity. If the total corpus is ₹8 lakh or less, the entire amount can be withdrawn. Government employees must still use at least 40% for an annuity. The example above uses a 40% annuity; lower the annuity % in the calculator to see a larger lump sum and a smaller pension.
Tier I vs Tier II accounts
Tier I is the main pension account: contributions are locked in until 60 (with limited partial withdrawals) and qualify for tax benefits. Tier II is an optional voluntary account with no lock-in and no tax benefit for most subscribers — it works much like a low-cost mutual fund.
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Results from this calculator are estimates based on the inputs and assumptions you enter. They are for information and education only and are not financial, tax or investment advice.