NPS Calculator

How to use the NPS calculator

Enter your monthly contribution to NPS Tier I, your current age, the age at which you plan to exit, and the return you expect. Choose whether you are a non-government subscriber (All Citizen or Corporate model) or a government employee, then set the share of the corpus you will use to buy an annuity and the annuity rate. The calculator shows your projected corpus, the lump sum you can withdraw, the amount that buys an annuity, and an estimate of your monthly pension.

What changed in NPS exit rules

For many years every subscriber had to use at least 40% of the corpus to buy an annuity at 60, with up to 60% as a lump sum. PFRDA's exit regulation amendments of December 2025 relaxed this for non-government subscribers:

Government employees still need to annuitise at least 40% (up to 60% lump sum), though the same ₹8 lakh and ₹8–12 lakh small-corpus options apply to them. You may also stay invested beyond 60 (now up to 85) and withdraw in instalments. Because annuities are fixed and fully taxable, many planners still suggest annuitising more than the minimum only if you need guaranteed lifelong income. The default here is 40% — adjust it to your plan.

NPS calculation formula

Contributions are assumed at the start of each month and grow at the expected return until exit. NPS returns are market-linked, so the corpus is an estimate.

Worked example

A 30-year-old contributing ₹10,000 a month until 60 at a 10% average return invests ₹36 lakh and builds a corpus of about ₹2.28 crore. Using 40% (about ₹91 lakh) to buy an annuity at 6.5% gives a pension of roughly ₹49,400 a month, with about ₹1.37 crore as a lump sum, all within the 60% tax-free limit. Using only the 20% minimum would leave ₹1.82 crore as lump sum but cut the pension to about ₹24,700, and the part above 60% may be taxable.

Tax benefits of NPS

• Section 80CCD(1): own contribution up to 10% of salary within the ₹1.5 lakh 80C limit (old regime).
• Section 80CCD(1B): an extra ₹50,000 deduction over 80C — old regime only.
• Section 80CCD(2): employer contribution up to 14% of basic + DA under the new regime (10% under the old regime) — one of the few deductions available in the new regime. These provisions continue under Section 124 of the Income-tax Act 2025.
• At exit: 60% of the corpus is tax-free; annuity income is taxed at your slab rate.

Compare both regimes with the income tax calculator.

Tips for NPS investors

• Choose Active choice with up to 75% equity while young, then shift toward bonds as you near 60 — or use an Auto choice lifecycle fund.
• Increase contributions with salary; even 5% a year adds substantially. Model the same idea with the step-up SIP calculator.
• Plan withdrawals from the lump sum with the SWP calculator, and remember EPF and gratuity add to your retirement pool.

NPS returns are market-linked and not guaranteed. This calculator gives estimates for planning, not financial or tax advice.