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NPS Calculator
An NPS calculator estimates what your National Pension System account can become by age 60 — and what it can pay you afterwards. Enter your monthly contribution and age to see the projected corpus, the lump sum you can withdraw, and the monthly pension the annuity part could provide.
| Total contributed by you | |
| Estimated corpus at exit | |
| Lump sum you can withdraw | |
| Amount used to buy annuity | |
| Estimated monthly pension |
Growth, year by year
| Age | Contributed so far | Corpus value |
|---|
Contributions vs growth
What you put in, and how much of the corpus is market growth.
How to use this NPS calculator
- Enter the amount you invest in NPS every month (your Tier 1 contribution).
- Enter your current age. The calculator runs your contributions until age 60 by default; you can extend this up to 75.
- Enter the return you expect. NPS money is invested in a mix of equity, corporate bonds and government securities, so long-term estimates of 9–11% are common.
- Choose how much of the corpus will buy an annuity at exit — the rules require at least 40% when the corpus is above ₹5 lakh — and the annuity rate you expect.
- Read the estimated corpus, the lump sum you can take out, and the monthly pension the annuity could pay.
How the NPS corpus and pension are calculated
The National Pension System (NPS) is a government-backed retirement scheme regulated by PFRDA. You contribute regularly until 60 (or up to 75 if you continue), and the money is invested in market-linked funds. This calculator grows your monthly contribution with monthly compounding, in the same way as a SIP:
At a normal exit at 60, the NPS rules this calculator follows are simple. If the corpus is more than ₹5 lakh, you may withdraw up to 60% as a lump sum, and at least 40% must be used to buy an annuity from an empanelled annuity service provider. That annuity pays your pension:
If the corpus is ₹5 lakh or less at 60, the rules allow you to withdraw the entire amount as a lump sum — no annuity purchase is compulsory. The calculator flags this case when it applies. The pension figure is only an estimate: real annuity rates are fixed by the provider on the day you buy, and depend on your age and the pension option you choose.
Worked example
A 25-year-old invests ₹5,000 a month in NPS until age 60 — 35 years, 420 contributions — at an expected return of 10% a year:
- Total contributed: ₹5,000 × 420 = ₹21,00,000
- Estimated corpus at 60: ₹1,91,41,384 (about ₹1.91 crore) — growth adds roughly ₹1.70 crore on top of the contributions
- Lump sum at the maximum 60%: ₹1,14,84,830
- Annuity purchase at the minimum 40%: ₹76,56,553
- Estimated pension at a 7% annuity rate: ₹76,56,553 × 7% ÷ 12 ≈ ₹44,663 a month
Enter the same numbers above and you will see the same result. Move the annuity share slider to see the trade-off directly: a bigger annuity share means a smaller lump sum today but a bigger pension every month for life.
NPS tax benefits and rules worth knowing
- Extra tax deduction: NPS contributions get the regular ₹1.5 lakh deduction under Section 80C (within 80CCE), plus an exclusive additional ₹50,000 under Section 80CCD(1B) in the old tax regime.
- Tax at exit: The lump sum withdrawn at 60 (up to 60% of the corpus) is fully tax-free. The pension you receive from the annuity is taxed at your income slab rate in the year you receive it.
- Tier 1 is locked in: Normal exit is at 60. Premature exit before 60 is allowed only after 5 years, and then 80% of the corpus must buy an annuity — this calculator models the normal exit at 60 or later.
- Choice of funds: Under the active choice, you decide the split between equity (up to 75%), corporate bonds and government securities. The return you enter should reflect the mix you actually hold.
Frequently asked questions
What is the minimum and maximum age to join NPS?
Any Indian citizen between 18 and 70 years can open an NPS account. Contributions can continue up to age 75. The normal exit — when you can withdraw under the regular rules — is at age 60.
How much of my NPS corpus must I use to buy an annuity?
At a normal exit at 60, if your corpus is more than ₹5 lakh, at least 40% must be used to buy an annuity from an empanelled annuity service provider, and up to 60% can be withdrawn as a lump sum. If the corpus is ₹5 lakh or less, you may withdraw the entire amount as a lump sum.
How is the NPS pension calculated?
The pension depends on the amount used to buy the annuity and the annuity rate offered by the provider at the time of purchase. As an estimate, this calculator uses: monthly pension = annuity amount × annuity rate ÷ 100 ÷ 12. At a 7% annuity rate, an annuity purchase of about ₹76.57 lakh gives roughly ₹44,663 a month.
What returns can I expect from NPS?
NPS returns are market-linked and not guaranteed. Over long periods, equity-oriented NPS schemes have delivered around 11–13% annualised returns and government security schemes around 8–9%, but past performance does not promise future results. This calculator lets you test any return assumption.
Is NPS better than PPF or EPF for retirement?
They do different jobs. PPF and EPF give fixed, government-backed returns with high safety — PPF currently pays around 7.1%. NPS invests in markets, so it can grow faster over decades but with ups and downs, and part of the corpus must buy a pension. Many people hold NPS for growth alongside PPF or EPF for stability.
Can I withdraw from NPS before 60?
Only in limited cases. Premature exit is allowed after 5 years of the account, and then at least 80% of the corpus must be used to buy an annuity, with only 20% available as a lump sum. Partial withdrawals (up to 25% of your own contributions) are allowed after 3 years for specific purposes like children's education, marriage, a home purchase or medical treatment.