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NPS Calculator

Enter your monthly contribution, your age and an expected return. Since December 2025 non-government subscribers may take up to 80% of the corpus as a lump sum — but the tax exemption still covers only 60%, and the calculator shows the two separately.

Yours plus your employer's, if any

Sector

60, or later if you defer

An assumption; NPS returns depend on your fund choice

Up to 80%; 60% is tax-free

From an annuity provider's quote, for the pension estimate

Enter your contribution, age and an expected return to see your NPS corpus at exit.

How to use this tool

  1. Enter the total monthly contribution to your Tier I account — your own plus your employer's, if it contributes.
  2. Choose your sector. Government subscribers follow different exit limits from private and All Citizen subscribers.
  3. Enter your age, your exit age and the return you expect. NPS returns depend on your fund's mix of equity, corporate bonds and government securities.
  4. Choose the share you would take as a lump sum. The calculator limits it to what the exit rules allow.
  5. Optionally enter an annuity rate from a provider's quote to estimate your monthly pension.

Formula and method

Corpus

FV = P × ((1 + i)^n − 1) ÷ i × (1 + i)
P
— monthly contribution
i
— expected annual return ÷ 12
n
— months until exit

Contributions buy fund units each month, so the corpus grows like an SIP. A yearly increase in contribution is modelled month by month.

At exit

Lump sum ≤ 80% (non-government) or 60% (government); tax-free part ≤ 60% of corpus

The rest buys an annuity from a provider, which pays the monthly pension: pension ≈ annuity amount × annuity rate ÷ 12.

Worked examples

₹10,000 a month from 30 to 60 at 10%

  1. Contributed: 10,000 × 360 = ₹36 lakh
  2. Corpus at 60: about ₹2.28 crore
  3. 60% lump sum: about ₹1.37 crore, all tax-free
  4. 40% annuity (₹91.2 lakh) at an assumed 6%: about ₹45,600 a month

A ₹2.28 crore corpus: ₹1.37 crore in hand tax-free and roughly ₹45,600 a month of pension at the assumed rate.

The same corpus, taking the maximum 80% lump sum

  1. Lump sum: about ₹1.82 crore
  2. Tax-free: 60% of the corpus, about ₹1.37 crore
  3. Taxable: the remaining 20%, about ₹45.6 lakh, at your slab rate

More cash at 60, but about ₹45.6 lakh of it is taxable and the pension is halved.

Notes and limitations

  • The December 2025 exit rules let non-government subscribers take up to 80% as a lump sum, with at least 20% used for an annuity, and withdraw everything when the corpus is ₹12 lakh or less. Government subscribers remain at 60% and 40%.
  • Only 60% of the corpus is exempt from tax when withdrawn; any lump sum above that is taxed at your slab rate. The pension from the annuity is taxable income.
  • Returns are not guaranteed. Equity exposure in NPS is capped by age and choice of scheme, and actual returns vary year to year.
  • Exits before 60, partial withdrawals and Tier II accounts follow different rules and are not modelled.
  • Contributions have their own tax benefits: an extra ₹50,000 deduction for your own contribution under the old regime, and a deduction for the employer's contribution of up to 14% of basic pay under the new regime.

Frequently asked questions

How much can I withdraw from NPS at 60?

Non-government subscribers can take up to 80% as a lump sum and must use at least 20% for an annuity; if the corpus is ₹12 lakh or less, all of it can be withdrawn. Government subscribers can take up to 60%.

Is the NPS lump sum tax-free?

Up to 60% of the corpus is tax-free. Since the exit rules now allow up to 80% for non-government subscribers, anything withdrawn above 60% is added to your income and taxed at your slab rate.

What annuity rate should I use?

Use a current quote from an annuity service provider for the type of annuity you would choose. Rates differ between providers and between options such as life annuity with or without return of purchase price.

What return does NPS give?

It depends on the fund manager and your mix of equity, corporate bonds and government securities. Past returns are published by PFRDA, but they are not a forecast — try a range of rates.

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