NPS Calculator
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Enter your monthly NPS contribution and age
and tap Calculate NPS.
NPS Calculator – Plan Your Pension and Lump Sum
The National Pension System (NPS) is a low-cost, government-regulated retirement scheme run by PFRDA. You put money in every month while you work, it is invested in a mix of equity, corporate bonds and government bonds, and at retirement you take part of the money as a lump sum and use the rest to buy an annuity that pays you a monthly pension. This NPS calculator shows your expected corpus, the lump sum you can take, and your monthly pension.
The calculator uses the new NPS exit rules notified by PFRDA in December 2025. Non-government subscribers can now withdraw up to 80% of their corpus as a lump sum at retirement – up from 60% – and need to annuitise only 20%. Government employees still follow the 60:40 split.
NPS calculation formula
The calculator adds your contribution at the start of every month and compounds the balance monthly at your expected return:
Balance = (Previous balance + Monthly contribution) × (1 + r ÷ 12)
After retirement: Lump sum = Corpus × withdrawal %, Annuity = Corpus − Lump sum, and Monthly pension = Annuity × annuity rate ÷ 12. If you add a step-up, your monthly contribution rises by that percentage once every year.
Example: ₹5,000 a month from age 30 to 60
You invest ₹18 lakh over 30 years. At an assumed 10% return it grows to about ₹1,13,96,627. Taking 80% as a lump sum gives you ₹91,17,301, of which ₹68,37,976 (60% of the corpus) is tax-free. The remaining ₹22,79,325 buys an annuity that pays around ₹11,397 a month at 6%. If you take only 60% as a lump sum, the pension doubles to about ₹22,793 a month.
NPS returns at different rates and starting ages
| Monthly contribution | Start age | Return | Total invested | Corpus at 60 |
|---|---|---|---|---|
| ₹5,000 | 25 | 10% | ₹21,00,000 | ₹1,91,41,384 |
| ₹5,000 | 30 | 8% | ₹18,00,000 | ₹75,01,476 |
| ₹5,000 | 30 | 10% | ₹18,00,000 | ₹1,13,96,627 |
| ₹5,000 | 30 | 12% | ₹18,00,000 | ₹1,76,49,569 |
| ₹5,000 | 40 | 10% | ₹12,00,000 | ₹38,28,485 |
| ₹10,000 | 35 | 10% | ₹30,00,000 | ₹1,33,78,903 |
Starting at 25 instead of 40 turns ₹5,000 a month into ₹1.91 crore instead of ₹38 lakh – five times as much for less than twice the money invested. That is the power of compounding over a long period. A 10% yearly step-up on the same ₹5,000 from age 30 grows the corpus to about ₹3.21 crore.
New NPS Exit Rules (December 2025)
| Situation | Lump sum allowed | Annuity needed |
|---|---|---|
| Private subscriber, corpus above ₹12 lakh | Up to 80% | At least 20% |
| Private subscriber, corpus ₹8 lakh or less | 100% | None |
| Government employee at retirement | Up to 60% | At least 40% |
For corpus between ₹8 lakh and ₹12 lakh, special rules allow a fixed lump sum with the rest through an annuity or systematic withdrawals. PFRDA also raised the maximum age for staying invested to 85, and allows NPS accounts to be pledged for loans. Read the full details in our guide to NPS withdrawal rules.
How Is NPS Taxed?
- Lump sum: up to 60% of the corpus is tax-free. If you withdraw more (up to 80%), the extra may be taxed at your slab rate unless the law changes.
- Annuity pension: taxed as income every year.
- Your contribution: under the old regime you get up to ₹1.5 lakh under 80CCD(1) within the 80C limit, plus an extra ₹50,000 under 80CCD(1B).
- Employer contribution: deductible under 80CCD(2) in both regimes – up to 14% of Basic + DA under the new regime. This is one of the few deductions left in the new regime.
How to Use the NPS Calculator
- Enter your monthly contribution (Tier I).
- Enter your current age and the age at which you plan to retire.
- Enter an expected return. 8%–10% is a reasonable long-term assumption for a mixed portfolio; equity-heavy choices may earn more but are riskier.
- Add a yearly step-up if you plan to raise your contribution as your salary grows.
- Choose your subscriber type and how much to take as a lump sum.
- Tap Calculate NPS to see the corpus, lump sum, tax-free part, annuity and monthly pension, plus a growth chart.
Choosing Your NPS Investment Mix
Under Active Choice you decide the split between equity (E), corporate bonds (C), government bonds (G) and alternative assets (A); equity can be up to 75%. Under Auto Choice, the equity share falls automatically as you get older. Younger investors usually benefit from more equity because they have time to ride out market falls. As you get closer to retirement, a lower equity share protects the money you have built.
NPS vs EPF vs PPF
EPF and PPF give fixed, tax-free returns (8.25% and 7.1% in 2026) but no market exposure. NPS is market-linked, so returns are not guaranteed, but over 20–30 years its equity portion can grow faster. Many people use all three: EPF through their employer, PPF for a safe tax-free part, and NPS for the extra ₹50,000 deduction and long-term growth. Compare them with our EPF calculator and PPF calculator.
Frequently Asked Questions
How much NPS will I get if I invest ₹5,000 per month?
From age 30 to 60 at an assumed 10% return, ₹5,000 a month grows to about ₹1.14 crore. You could take up to ₹91 lakh (80%) as a lump sum and get a pension of about ₹11,400 a month from the rest at a 6% annuity rate.
Can I withdraw 80% of NPS at retirement?
Yes, if you are a non-government subscriber and your corpus is above ₹12 lakh. Under PFRDA's December 2025 amendment you can withdraw up to 80% as a lump sum and must use at least 20% to buy an annuity. Government employees can withdraw up to 60%.
Is the NPS lump sum tax-free?
Up to 60% of the corpus is tax-free. Any amount withdrawn above 60% may be taxed at your slab rate. The pension from the annuity is taxable income.
What return does NPS give?
NPS returns depend on your asset mix and the market. Equity-heavy NPS schemes have historically delivered around 10% to 12% a year over long periods, but returns are not guaranteed. The calculator lets you test different rates.
How is NPS pension calculated?
Monthly pension = amount used to buy the annuity × annuity rate ÷ 12. For example, ₹22.8 lakh at a 6% annuity rate gives about ₹11,400 a month.
What is the tax benefit of NPS?
Under the old regime you can deduct up to ₹1.5 lakh under 80CCD(1) (within the 80C limit) and an extra ₹50,000 under 80CCD(1B). Employer contributions are deductible under 80CCD(2) in both regimes.
Can I withdraw my full NPS amount?
Yes, if your total corpus is ₹8 lakh or less as a non-government subscriber. Above that, part of the corpus must buy an annuity.
Sources: PFRDA (Exits and Withdrawals under NPS) (Amendment) Regulations, 2025, notified December 2025; Income-tax provisions for NPS (tax-free lump sum up to 60% of corpus, deductions under 80CCD). Returns are assumptions, not guarantees. Checked October 2026.