NPS Calculator
Calculate National Pension Scheme returns and retirement corpus
Investment Details
NPS entry age: 18-65 years
Normal exit age: 60 years (can extend to 75)
Minimum ₹1,000 per month
Historical NPS returns: 8-12% p.a.
Typical annuity rates: 5-7% p.a.
NPS tax benefits (old regime only):
• 80CCD(1B): an additional ₹50,000, over and above 80C
• 80CCD(1): the remainder, inside the shared ₹1.5L 80C ceiling
• 80CCD(2): your employer's contribution — available under both regimes
NPS deduction structure — set by Pension Fund Regulatory and Development Authority; Income-tax Act. Last verified .
The exit rules after PFRDA’s December 2025 amendment — a 20% minimum annuity for non-government subscribers and 40% for government — and the s.10(12A) exemption, which still covers only 60% of the corpus. Also how s.80CCD(1B)’s additional ₹50,000 sits on top of the ₹1.5 lakh pool rather than inside it. Deduction limits themselves come from lib/tax.
Check the sourceTotal Corpus at Retirement
At Retirement (Age 60)
Can be withdrawn immediately
Used to buy pension annuity
From annuity @ 6% p.a.
Tax Benefits
₹50,000 under 80CCD(1B); ₹10,000 under 80CCD(1)
* 60% lumpsum is tax-free. Non-government subscribers may annuitise as little as 20% since PFRDA’s Dec 2025 amendment, but any lump sum above 60% of the corpus is taxable. Monthly pension is taxable as per your income tax slab.
Corpus Breakdown
Your wealth grows 533% from ₹18,00,000 to ₹1,13,96,627!
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How this is calculated
Formula
corpus = SIP future value · lump sum = 60% × corpus · pension = (40% × corpus) × annuity rate ÷ 12
- corpus
- = accumulated NPS balance at retirement
- lump sum / annuity
- = the split you chose — 60% is the most that can be withdrawn tax-free; the minimum annuity is 20% (non-government) or 40% (government)
- annuity rate
- = what the annuity provider pays each year on the purchase price
With your numbers
- 1Accumulate the contributionsmonthly contribution compounded to retirement₹5,000 a month for 30 years at 10% → ₹1,13,96,627 (₹18,00,000 contributed, ₹95,96,627 growth)
- 2Split it at exitlump sum = 60%, annuity = 40%₹68,37,976 withdrawable, ₹45,58,651 annuitised
- 3Convert the annuity to a pensionmonthly pension = annuity corpus × rate ÷ 12₹45,58,651 × 6% ÷ 12 = ₹22,793 a month
- 4Allocate the deduction80CCD(1B) first (₹50,000), then whatever 80C has left₹60,000 contributed → ₹60,000 deductible, saving ₹18,000 a year at the 30% band
- s.80CCD(1B) is an additional ₹50,000 on top of the ₹1.5 lakh pool, not a second claim on the same rupees. Allocating it as min(x, 1.5L) + min(x, 50k) double-counts, and claims ₹1 lakh of relief on a ₹50,000 contribution.
- The tax saved depends on your marginal band, not on a flat 30%. At the 5% band the same deduction is worth a sixth as much.
- The annuity purchase is irreversible: at least 20% of the corpus for non-government subscribers (PFRDA, December 2025), 40% for government. The pension is taxable as income in the year received; the lump sum is exempt up to 60% of the corpus.
- The annuity rate is whatever providers are offering when you retire — decades away, and not something today’s rate predicts.
About NPS
National Pension Scheme (NPS) is a government-backed retirement savings scheme regulated by PFRDA.
- • Entry Age: 18-65 years (exit at 60-75)
- • Minimum: ₹1,000/month or ₹6,000/year
- • Withdrawals: up to 80% lumpsum (60% tax-free) + at least 20% annuity
- • Returns: Market-linked (8-12% historical)
- • Portability: Single account across India
- • Tax Benefits: Up to ₹2L deduction (80CCD)
NPS Investment Options
- •Equity (E): Up to 75% in stocks (high risk, high return)
- •Corporate Bonds (C): Debt securities (medium risk)
- •Government Securities (G): Safe, low returns
- •Auto Choice: Age-based automatic rebalancing
- •Active Choice: You decide allocation
- •8+ Pension Fund Managers to choose from
Tax Benefits Explained
Section 80CCD(1): Up to ₹1.5 lakh (part of 80C limit)
Section 80CCD(1B): Additional ₹50,000 deduction
Section 80CCD(2): Employer contribution (10% of basic + DA)
Total Maximum Deduction: Up to ₹2 lakh per year for self-contribution + employer contribution!
Withdrawal Rules
- •Normal Exit (60 years): up to 80% lumpsum + at least 20% annuity (government subscribers: 60% + 40%)
- •Premature Exit: 80% must buy annuity
- •Partial Withdrawals: 25% after 3 years (specific needs)
- •60% lumpsum withdrawal is tax-free
- •Monthly pension is taxable as income
Frequently Asked Questions
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Terms used here
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