The National Pension System is a low-cost, market-linked retirement scheme regulated by PFRDA. You invest regularly until 60, then take part of the corpus as a lump sum and use the rest to buy an annuity that pays a monthly pension. This calculator estimates both.
How the NPS corpus is calculated
Corpus = existing balance grown + every monthly contribution grown at your expected return until retirementContributions rise each year by the step-up % you chooseMonthly pension = annuity amount × annuity rate ÷ 12Withdrawal rules at 60
Since December 2025, non-government subscribers follow these exit rules:
| Corpus at exit | What you can do |
|---|---|
| Up to ₹8 lakh | Withdraw it all as a lump sum |
| ₹8 lakh – ₹12 lakh | Take up to ₹6 lakh as a lump sum, or follow the 80/20 split |
| Above ₹12 lakh | Up to 80% as a lump sum; at least 20% must buy an annuity |
Government employees follow different rules. Check the latest PFRDA circulars before you plan your exit.
Worked example
Example: Age 30, ₹10,000 a month rising 5% a year, 10% return, retire at 60
Total contributions: about ₹79.7 lakh.
Estimated corpus at 60: about ₹3.59 crore.
With 40% used for an annuity at 6%: lump sum ₹2.16 crore, and a pension of about ₹71,900 a month.
Remember that ₹71,900 in 30 years will buy much less than today. Check its value with the inflation calculator.
Tax benefits
- Your employer's contribution of up to 14% of basic is deductible in the new regime too.
- In the old regime, your own contribution counts towards 80C, plus an extra ₹50,000 deduction just for NPS.
- Annuity income is taxed at your slab rate when you receive it.
How to use this calculator
- Enter your monthly contribution, age and exit age.
- Set expected return and yearly increase.
- Choose how much goes to an annuity and its rate.
FAQs
How much NPS can I withdraw at retirement?
Since December 2025, non-government subscribers with over ₹12 lakh can take up to 80% as a lump sum. Government employees follow different rules.
Is NPS useful in the new tax regime?
Your own contribution isn't deductible in the new regime, but your employer's contribution (up to 14% of basic) is.
Sources
Results are estimates for resident individuals under 60 and aren't tax, legal or financial advice. For your own return, check with a chartered accountant. Spotted a mistake? Tell us.