NPS Calculator

Project your National Pension System corpus at retirement, the lump sum you can withdraw and the monthly pension you can expect.

Plan your NPS

Monthly contribution

₹

Current age

Contributions run until the retirement age of 60.

Expected return (p.a.)

Corpus used for annuity

At least 40% of the corpus must be used to buy an annuity.

Expected annuity rate (p.a.)

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Your results

Corpus at retirement

₹1,13,96,627

Investing for 30 year(s) until age 60

Corpus₹1.14 Cr

Total invested₹18,00,00015.8%
Est. returns₹95,96,62784.2%

Total invested

₹18,00,000

Est. returns

₹95,96,627

Lump-sum withdrawal

₹68,37,976

Est. monthly pension

₹22,793

At retirement (age 60)

Total corpus: ₹1,13,96,627
Lump-sum withdrawal (60%): ₹68,37,976
Amount used for annuity (40%): ₹45,58,651
Estimated monthly pension: ₹22,793

* At least 40% of the corpus must be used to purchase an annuity; the rest can be withdrawn as a tax-free lump sum.
* The monthly pension depends on the annuity rate offered by the insurer at the time of retirement.

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What is the NPS Calculator?

The National Pension System (NPS) is a government-regulated, market-linked retirement scheme. You contribute regularly until age 60; the money is invested across equity and debt funds, and at retirement you withdraw part as a lump sum and use the rest to buy an annuity that pays a monthly pension. An NPS calculator projects your corpus, lump sum and expected pension.

How does it work?

The calculator treats your monthly contributions as a SIP that compounds at the expected return until you turn 60. At retirement it splits the corpus: the portion you assign to an annuity (at least 40%) is multiplied by the expected annuity rate to estimate a yearly pension, which is divided by 12 for the monthly figure. The remaining corpus is your lump-sum withdrawal.

Formula

Corpus = P × [((1 + i)^n − 1)/i] × (1 + i); Monthly Pension = (Corpus × a% × annuity rate) ÷ 12

P = monthly contribution
i = monthly return (annual ÷ 12)
n = months until age 60
a% = share of corpus used for annuity (≥ 40%)

Example calculation

A 30-year-old contributing ₹5,000 a month at 10% until age 60 builds a corpus of about ₹1.13 crore. Using the minimum 40% (≈ ₹45 lakh) for an annuity at 6% gives a monthly pension of roughly ₹22,600, while the remaining ₹68 lakh can be withdrawn as a tax-free lump sum.

Benefits

Low-cost, professionally managed retirement investing.
Extra tax deduction of up to ₹50,000 under Section 80CCD(1B), over and above 80C.
Up to 60% of the corpus can be withdrawn tax-free at retirement.

Limitations

Funds are largely locked in until age 60 with limited early exit.
At least 40% must be annuitised, and the pension is taxable as income.
Returns are market-linked and the future annuity rate is uncertain.

Conclusion

NPS is a tax-efficient way to build a dedicated retirement corpus and a lifelong pension. Use this calculator to size your monthly contribution to your retirement goal, and remember the actual pension depends on the annuity rate available when you retire.

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Frequently asked questions

01What is the National Pension System (NPS)?

NPS is a government-regulated, market-linked retirement savings scheme where you contribute until age 60 and then receive a lump sum plus a monthly pension via an annuity.

02How much pension will I get from NPS?

It depends on your corpus, the share you annuitise (at least 40%) and the annuity rate offered at retirement. The calculator estimates the monthly pension from these inputs.

03How much of the corpus can I withdraw as a lump sum?

Up to 60% of the corpus can be withdrawn as a tax-free lump sum at age 60; the remaining 40% (or more) must buy an annuity.

04What tax benefits does NPS offer?

NPS contributions qualify under Section 80C, plus an additional ₹50,000 deduction under Section 80CCD(1B), making it attractive for tax savings.

05Is the NPS pension taxable?

The lump-sum withdrawal of up to 60% is tax-free, but the annuity/pension income is taxed as per your income slab in the year you receive it.

06Can I withdraw from NPS before 60?

Premature exit is allowed after a minimum period but with stricter annuity rules, and partial withdrawals are permitted only for specific needs such as education, illness or buying a home.

07What return can I expect from NPS?

NPS returns are market-linked and depend on your equity-debt mix. Historically, balanced NPS portfolios have delivered roughly 9–11% per year, though this is not guaranteed.