NPS Calculator
Estimate your National Pension System corpus, tax-free lump sum and monthly pension at 60 — with step-up contributions and an adjustable 60/40 annuity split.
Total corpus at retirement
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Invested
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Total gains
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Corpus
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Monthly pension
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At age 60 — your options
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60% of corpus
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40% of corpus
Paid for life from your annuity, before tax.
Corpus growth
Invested vs returns
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- Total returns ₹0
- Corpus at 60 ₹0
How the NPS calculator works
The National Pension System (NPS) is a market-linked retirement scheme regulated by PFRDA. You contribute every month until age 60, your money grows across equity and debt, and at retirement it becomes a lump sum plus a lifelong pension. This calculator compounds your monthly contribution (with an optional annual step-up) at your expected return to project the corpus, then applies the 60/40 rule to show your tax-free lump sum and monthly pension.
The 60/40 rule and your monthly pension
At 60 you can take up to 60% of the corpus as a tax-free lump sum, and at least 40% must buy an annuity that pays your pension. The pension depends on the annuity rate offered by the insurer:
- Monthly pension = (Annuity corpus × Annuity rate) ÷ 12
Adjust the annuity percentage above to trade a bigger lump sum for a smaller pension, or vice versa.
NPS tax benefits (80CCD)
NPS is one of the most tax-efficient retirement products. You get up to ₹1.5 lakh under Section 80CCD(1) (part of the overall Section 80C limit) and an exclusive extra ₹50,000 under Section 80CCD(1B), taking the total deduction to ₹2 lakh. Employer contributions are separately deductible under 80CCD(2), which is especially valuable for salaried and government employees.
NPS for government employees, and NPS Vatsalya
Government employees: for central government staff the employee puts in 10% of basic + DA and the government adds 14%. Enter the combined monthly contribution above and the same 60/40 rule applies. NPS Vatsalya lets parents open an NPS account for a minor — model it by setting the current age to your child’s age and a long horizon to see the power of decades of compounding. Salaried users can also plan their take-home with the in-hand salary calculator and long-term wealth with an SIP.
Frequently asked questions
How is the NPS pension calculated?
Your monthly NPS contributions grow at a market-linked return until age 60 to form a corpus. At 60 you can withdraw up to 60% of the corpus as a tax-free lump sum, and you must use at least 40% to buy an annuity. Your monthly pension = (annuity corpus × annuity rate) ÷ 12. For example, a Rs 1 crore annuity corpus at a 6% annuity rate gives 1,00,00,000 × 6% ÷ 12 = Rs 50,000 per month.
What is the 60/40 rule in NPS?
At retirement (age 60), NPS lets you withdraw a maximum of 60% of your corpus as a tax-free lump sum. The remaining minimum 40% must be used to purchase an annuity from an insurer, which pays you a regular pension for life. You can choose to annuitise more than 40% if you want a larger pension, which this calculator lets you adjust.
What return can I expect from NPS?
NPS is market-linked and invests across equity, corporate bonds and government securities based on your chosen allocation. Historically, NPS funds have delivered roughly 9%–12% per year over the long term, though returns are not guaranteed. This calculator uses 10% by default — lower it for a conservative estimate or raise it for an aggressive equity-heavy allocation.
What are the NPS tax benefits?
NPS offers a deduction of up to Rs 1.5 lakh under Section 80CCD(1) (within the overall 80C limit), plus an exclusive additional Rs 50,000 under Section 80CCD(1B) — a total of up to Rs 2 lakh. Employer contributions are separately deductible under 80CCD(2). At retirement, the 60% lump sum is fully tax-free.
Is there an NPS calculator for government employees?
Yes — this calculator works for government employees too. For central government staff, the employee contributes 10% of basic + DA and the government contributes 14%, so enter the combined monthly contribution and your expected return. The same 60/40 withdrawal rule and pension formula apply.
What is NPS Vatsalya?
NPS Vatsalya is a version of NPS for minors, opened and managed by parents or guardians until the child turns 18, after which it converts into a regular NPS account. It lets you start building a retirement corpus for your child very early, giving decades of compounding. You can model it here by setting the current age to the child’s age and a long horizon.
Can I withdraw the entire NPS corpus at 60?
If your total corpus is Rs 5 lakh or less, you can withdraw 100% as a lump sum without buying an annuity. Above that, the standard 60/40 rule applies — up to 60% tax-free lump sum and at least 40% towards an annuity for your pension.