NPS Calculator
Estimate your NPS corpus, lump sum and monthly pension at retirement (new 2026 exit rules)
Year-by-year breakdown
| Age | Monthly contribution | Invested (cumulative) | Corpus at year end |
|---|
What Is the National Pension System (NPS)?
The National Pension System is a government-backed retirement scheme regulated by PFRDA (the Pension Fund Regulatory and Development Authority). You invest regularly during your working years, professional fund managers invest that money in a mix of equity, corporate bonds and government securities, and at retirement you get a lump sum plus a monthly pension.
Any Indian citizen aged 18 to 70 can open an NPS account, whether salaried, self-employed or an NRI. It's one of the lowest-cost investment products in India and comes with tax benefits that few other options match.
The big question most people have is simple: how much will I actually get? That's what the calculator above answers.
How to Use the NPS Calculator
Step 1 – Enter your monthly contribution and your current age.
Step 2 – Choose your retirement age. The normal exit age is 60, but you can stay invested longer.
Step 3 – Set your expected return. Around 10% is a reasonable long-term assumption if a large share of your NPS is in equity; use 8–9% if you prefer a conservative mix.
Step 4 – Add a yearly increase if you plan to raise your contribution as your salary grows.
Step 5 – Decide your lump sum and annuity rate. Choose how much of your corpus to take as cash at retirement, and the pension rate you expect insurers to offer.
The calculator shows your total corpus, the lump sum you receive (and how much of it is tax-free), your monthly pension, and what that pension is worth in today's money. It also applies the correct exit rule for your corpus size automatically.
New NPS Exit Rules (2026)
In December 2025, PFRDA changed the withdrawal rules for non-government subscribers – individuals and corporate employees. The biggest change: you can now take up to 80% of your corpus as a lump sum at retirement, up from 60%, and only need to use 20% to buy an annuity (pension). Here's how it works at normal exit (age 60):
| Your NPS Corpus | What You Can Do |
|---|---|
| Up to ₹8 lakh | Withdraw the entire amount – no annuity needed |
| ₹8 lakh – ₹12 lakh | Take up to ₹6 lakh as a lump sum; the rest through an annuity or instalments over at least 6 years |
| Above ₹12 lakh | Take up to 80% as a lump sum; use at least 20% to buy an annuity |
You can also choose to defer your withdrawal and stay invested until age 85. If you exit early (before 60 or before 15 years in NPS), the rules are stricter: at least 80% must go into an annuity, unless your corpus is ₹5 lakh or less. Government employees still need to use 40% of their corpus for an annuity.
The Tax Catch: Only 60% Is Tax-Free
Here's what many people miss. PFRDA now lets you withdraw 80%, but income tax law still exempts only 60% of your corpus. Anything you take above 60% is added to your income and taxed at your slab rate. The pension you receive from the annuity is also taxed every year as regular income.
Take a ₹1.14 crore corpus as an example:
| Take 60% as Lump Sum | Take 80% as Lump Sum | |
|---|---|---|
| Lump sum | ₹68.38 lakh | ₹91.17 lakh |
| Tax-free part | ₹68.38 lakh (all of it) | ₹68.38 lakh |
| Taxable part | Nil | ₹22.79 lakh |
| Monthly pension (6% annuity) | ₹22,793 | ₹11,397 |
Taking the extra 20% gives you more cash upfront but can mean a large tax bill in the year you withdraw it – and a smaller lifelong pension. For many people, taking 60% and letting the rest become a pension is the more tax-efficient choice. If you do want more than 60%, consider spreading withdrawals using the systematic withdrawal option instead of taking it all at once.
Tax Benefits When You Invest in NPS
| Deduction | What It Covers | Old Regime | New Regime |
|---|---|---|---|
| 80CCD(1) | Your own contribution, within the overall ₹1.5 lakh 80C limit | Yes | No |
| 80CCD(1B) | An extra ₹50,000 of your own contribution, over and above 80C | Yes | No |
| 80CCD(2) | Your employer's contribution | Up to 10% of basic + DA | Up to 14% of basic + DA |
The extra ₹50,000 under 80CCD(1B) saves up to ₹15,600 a year if you're in the 30% slab under the old regime. But the most powerful benefit today is 80CCD(2), because it works in the new regime too. If your employer offers NPS as part of your salary, restructuring some of your pay into employer NPS can cut your tax even under the new regime. Ask your HR team whether it's available.
Not sure which regime suits you? Compare both with our Income Tax Calculator.
Why Starting Early Matters So Much
Here's what a ₹5,000 monthly contribution grows to by age 60 at a 10% return, taking 60% as a lump sum and a 6% annuity on the rest:
| Start Age | You Invest | Corpus at 60 | Tax-Free Lump Sum | Monthly Pension |
|---|---|---|---|---|
| 25 | ₹21 lakh | ₹1.91 crore | ₹1.15 crore | ₹38,283 |
| 30 | ₹18 lakh | ₹1.14 crore | ₹68.38 lakh | ₹22,793 |
| 35 | ₹15 lakh | ₹66.89 lakh | ₹40.14 lakh | ₹13,379 |
| 40 | ₹12 lakh | ₹38.28 lakh | ₹22.97 lakh | ₹7,657 |
| 45 | ₹9 lakh | ₹20.90 lakh | ₹12.54 lakh | ₹4,179 |
Starting at 25 instead of 35 means investing just ₹6 lakh more – but ending up with nearly three times the corpus. And if you raise your contribution by 10% every year starting at 30, the same ₹5,000 grows into about ₹3.21 crore by 60, with a monthly pension of around ₹64,000. See our Step-up SIP Calculator for more on how yearly increases add up.
Don't Forget Inflation
A ₹22,793 monthly pension 30 years from now sounds reasonable – but at 6% inflation, it's worth only about ₹4,000 a month in today's money. The annuity pension is also usually fixed for life, so it loses value every year you're retired.
That's why NPS works best as one part of your retirement plan, alongside mutual funds, PPF and EPF. Use our Retirement Planner to work out your total retirement number, and read our guide on creating a monthly income from mutual funds after retirement.
NPS vs PPF vs EPF
| NPS | PPF | EPF | |
|---|---|---|---|
| Returns | Market-linked | Fixed by government, reset quarterly | Fixed by EPFO each year |
| Equity exposure | Yes, you choose the mix | No | Small |
| Lock-in | Till 60 (partial withdrawals allowed) | 15 years | Till retirement (partial withdrawals allowed) |
| At maturity | 60% tax-free; at least 20% buys a pension | Fully tax-free | Generally tax-free |
| Who can invest | Anyone aged 18–70 | Resident Indians | Salaried employees |
NPS offers higher growth potential thanks to equity, but less flexibility at exit. PPF is completely tax-free but has no equity. Many people use both – see how PPF compares with our PPF Calculator.
Mistakes to Avoid With NPS
Choosing a Conservative Mix When You're Young
If you're in your 20s or 30s, keeping most of your NPS in government bonds can cost you lakhs over the long run. Pick a higher equity allocation early on, and let the "auto choice" option gradually reduce it as you age.
Withdrawing 80% Without Checking the Tax
The new 80% option is useful, but the extra 20% is taxable. Plan the timing and consider spreading it out.
Ignoring Employer NPS
If your company offers NPS under 80CCD(2), it's one of the few tax breaks still available in the new regime. Not using it means paying tax you don't have to.
Relying Only on the NPS Pension
Annuity rates are modest and the pension usually doesn't rise with inflation. Build other investments too, so your retirement income can keep up with rising costs.
Questions People Actually Ask Us
Can I withdraw my entire NPS corpus at 60? Only if your corpus is ₹8 lakh or less. Above that, you can take up to 80% as a lump sum (₹6 lakh if your corpus is between ₹8 lakh and ₹12 lakh), and the rest must go into an annuity or be withdrawn in instalments.
Is the NPS lump sum tax-free? Up to 60% of your corpus is tax-free. Anything above that is taxed at your income tax slab rate.
Can I get NPS tax benefits in the new tax regime? Only your employer's contribution under 80CCD(2) – up to 14% of basic salary plus DA. Your own contributions don't get a deduction in the new regime.
What return should I expect from NPS? It depends on how much is in equity. A long-term assumption of 9–10% is reasonable for an equity-heavy mix, and lower for a conservative one. Returns aren't guaranteed.
What is an annuity rate? It's the yearly pension an insurer pays you for every ₹100 you use to buy an annuity. At a 6% rate, a ₹10 lakh annuity pays about ₹5,000 a month. Rates depend on your age and the type of annuity you choose.
Can NRIs invest in NPS? Yes. NRIs aged 18–70 can open an NPS account and contribute through their NRE or NRO account.
Plan Your NPS the Smart Way
NPS rewards people who start early, invest consistently and use the tax benefits well. Enter your numbers above, try different retirement ages and lump sum choices, and see which combination gives you the retirement you want.
Disclaimer:
This calculator is meant for educational and informational purposes only. The results are estimates based on a constant rate of return and the assumptions you enter.
- NPS returns are market-linked and not guaranteed. Actual returns will differ.
- Annuity rates vary by insurer, your age and the annuity type, and are set when you buy the annuity.
- Exit rules shown are PFRDA's rules for non-government subscribers as amended in December 2025. Rules for government employees differ.
- Tax rules can change. The calculator does not account for fund management charges.
- This calculator has no connection to PFRDA or any pension fund.
For advice on your own situation, please consult a SEBI-registered investment adviser or a qualified tax professional. See our full Disclaimer.
Also Try These Calculators on TappingMoney:
- Retirement Planner – Figure out your retirement number
- Income Tax Calculator – Compare the old and new tax regimes
- PPF Calculator – See how your tax-free PPF savings grow
- SWP Calculator – Plan a monthly income after retirement
Page last updated: September 2026 | Free to use | No sign-up needed