NPS Calculator
Estimate your NPS retirement corpus, lump-sum payout and monthly pension. Enter your monthly contribution, expected return and tenure.
Formula last reviewed 4 August 2026 · How we verify our calculators
Total corpus at retirement
- Lump-sum withdrawal (60%, tax-free)
- ₹68,37,976
- Annuity purchase (40%, mandatory)
- ₹45,58,651
- Monthly pension (from annuity)
- ₹22,793
- Extra 80CCD(1B) tax deduction
- ₹50,000
Updates live as you type
Frequently asked questions
The National Pension System is a voluntary, market-linked retirement scheme regulated by PFRDA. You contribute during your working years and receive a lump sum plus a monthly pension after retirement.
At 60, you can withdraw up to 60% of the corpus tax-free as a lump sum. At least 40% must be used to buy an annuity that pays your monthly pension.
Contributions qualify for deduction under Section 80CCD(1) within the 80C limit, plus an additional ₹50,000 under 80CCD(1B) — a benefit unique to NPS.
It depends on your asset allocation between equity, corporate bonds and government securities. Long-term returns have typically ranged from 8% to 12% depending on the equity exposure chosen.
The corpus is only half the story — NPS also builds your pension
Most retirement calculators stop at a single number: your corpus. NPS was designed to end differently — part cash in hand, part a pension that keeps paying for the rest of your life. Run ₹5,000 a month at an expected 10% return for 30 years, annuitising the minimum 40% at a 6% annuity rate, and the projected corpus is ₹1,13,96,627. Split that the way NPS requires: ₹68,37,976 (60%) comes to you as a tax-free lump sum, and ₹45,58,651 (40%) buys an annuity that pays a monthly pension of ₹22,793 for as long as you live.
How the corpus becomes two different things
The calculator's first step is identical to a SIP projection — it grows your monthly contribution forward at the expected return using the annuity-due formula. What happens after that is specific to NPS: the accumulated corpus is split according to the annuity share you choose (a minimum of 40% is mandatory by regulation), the annuitised portion is set aside, and that portion is then converted into a monthly pension at whatever annuity rate you specify. Everything up to 60% of the corpus — assuming you annuitise only the minimum — can be withdrawn tax-free in one shot at retirement.
Why NPS gets its own tax section
Beyond the standard 80C deduction that PPF and EPF also qualify for, NPS carries an extra ₹50,000 deduction under Section 80CCD(1B) — available only to NPS contributors, on top of the regular 80C ceiling. Combine that with fund management charges that run far below what most mutual funds charge, and more of every contribution ends up actually compounding rather than being eaten by fees.
Choosing between NPS, PPF and EPF isn't really either/or
PPF is fully government-backed with a fixed, tax-free rate but a comparatively low annual ceiling. EPF is the salaried default — also fixed-rate, with an employer match and a built-in EPS pension riding alongside it. NPS is the market-linked option: typically higher long-run returns and that unique 80CCD(1B) deduction, in exchange for equity risk during accumulation and a mandatory annuity purchase at the end that most other instruments don't impose. Plenty of savers hold all three rather than betting everything on one.