Estimate your National Pension System (NPS) corpus at retirement, the lump sum you can withdraw, and the estimated monthly pension from the mandatory annuity purchase.
How to Use the NPS Calculator
Enter your "Current Age" and planned "Retirement Age".
Enter your "Monthly Contribution (₹)" towards NPS.
Enter the "Expected Annual Return (%)" based on your chosen equity/debt allocation.
Enter the "Annuity Purchase (%)" - at least 40% for government employees and at least 20% for other subscribers - and the "Expected Annuity Rate (%)".
Click "Calculate" to see your total corpus, lump sum withdrawal, and estimated monthly pension.
How the NPS Estimate Is Worked Out
The calculator works in three steps, following the way an NPS account moves from saving to pension:
Corpus at retirement: Each monthly contribution is compounded at your expected return (annual return ÷ 12 per month) until your retirement age, with contributions assumed at the start of each month.
Split at exit: The corpus is divided into the annuity portion (the percentage you enter) and the lump sum you can withdraw (the rest).
Monthly pension: The annuity portion multiplied by the annuity rate gives the yearly pension, and dividing by 12 gives the monthly figure.
NPS returns are market-linked, not guaranteed. What you actually earn depends on your asset mix across equity, corporate bonds and government securities, your pension fund manager and market conditions over the years. The 10% default is only a starting point. Try a lower figure such as 8% to see a more cautious outcome.
Worked Example
A 30-year-old contributes ₹5,000 a month until 60, assumes a 10% annual return, puts 40% of the corpus into an annuity, and expects an annuity rate of 6%. Over 30 years they contribute ₹18 lakh. The corpus grows to about ₹1.14 crore. Of this, about ₹68.4 lakh can be taken as a lump sum and about ₹45.6 lakh buys the annuity, which pays roughly ₹22,793 a month.
The same ₹5,000 monthly contribution for 30 years under different return assumptions (40% annuity at 6%):
Annual Return
Corpus at 60
Lump Sum (60%)
Monthly Pension
8%
₹75,01,476
₹45,00,886
₹15,003
10%
₹1,13,96,627
₹68,37,976
₹22,793
12%
₹1,76,49,569
₹1,05,89,741
₹35,299
A two-point difference in return changes the final corpus by tens of lakhs over 30 years, which is why starting early and reviewing your asset allocation matter more than small changes in the monthly amount. These figures are in future rupees. After 30 years of inflation, ₹22,793 a month will buy much less than it does today.
Exit Rules: Annuity and Lump Sum
For central and state government employees, at least 40% of the corpus at normal exit must be used to buy an annuity, and up to 60% can be withdrawn as a lump sum.
For subscribers outside government, such as those under the All Citizen model or a corporate NPS, PFRDA amended the exit rules in December 2025. At normal exit (age 60, retirement, or 15 years in NPS), at least 20% of the corpus must buy an annuity and up to 80% can be withdrawn as a lump sum or in instalments. If the total corpus is ₹8 lakh or less, no annuity is required and the whole amount can be withdrawn. You can always choose to annuitise more than the minimum if you want a larger pension.
Exit and withdrawal rules are set by PFRDA and have changed several times. Before you plan your exit, check the current regulations on the PFRDA or NPS Trust website or with your point of presence.
Tax Treatment of NPS
Your own contributions: Under the old tax regime, they count towards the ₹1.5 lakh limit for section 80CCD(1) and 80C under the old Act, and you can claim an extra ₹50,000 under section 80CCD(1B). The new regime does not allow these deductions.
Employer contributions: Your employer's contribution to your NPS account is deductible under section 80CCD(2) of the old Act in both regimes, up to 14% of basic salary plus DA under the new regime and up to 10% under the old regime for private-sector employees. This is one of the few deductions still open in the new regime.
At retirement: The lump sum up to 60% of the corpus is tax-free. The annuity pension you receive each month is added to your income and taxed at your slab rate.
Section numbers above refer to the Income-tax Act, 1961, which was replaced by the Income-tax Act, 2025 from April 2026. Limits and treatment, including how any withdrawal above 60% is taxed, should be confirmed with the Income Tax Department or a tax adviser.
Frequently Asked Questions
NPS is meant to provide a pension, so the rules require part of the corpus at retirement to buy an annuity from a PFRDA-empanelled insurer, which then pays you a regular income for life. The minimum is 40% for government employees and, after the December 2025 amendment, 20% for other subscribers. The rest can be withdrawn as a lump sum.
It treats your NPS contributions like a SIP - each monthly contribution compounds at your expected annual return until retirement - using the formula FV = P × [((1+r)^n - 1)/r] × (1+r), where P is the monthly contribution, r is the monthly return, and n is the number of months to retirement.
It applies your expected annual annuity rate to the annuity corpus and divides by 12 for a simple monthly estimate. Actual pension amounts depend on the annuity provider, plan type, and prevailing annuity rates at the time of purchase.
It depends on how much of your money is in equity. A portfolio with a large equity share has historically delivered higher long-term returns than one mostly in government and corporate bonds, but with more ups and downs. Since past returns do not guarantee future ones, it is sensible to run the calculator at two or three different rates, such as 8%, 10% and 12%, and plan around the lower result.
Only partly. The deductions for your own contributions, including the extra ₹50,000 under section 80CCD(1B) of the old Act, are available only under the old regime. Your employer's contribution remains deductible under the new regime, up to 14% of basic salary plus DA, which makes corporate NPS useful even for new-regime taxpayers.