NPS Calculator

An NPS calculator projects your National Pension System corpus at retirement and the pension it buys. You enter your age, monthly contribution and expected return; it shows the corpus at 60, the lump sum you can withdraw, and your monthly pension from the annuity.

Your contributions grow like a SIP until you exit at 60, building a corpus. At 60 you take part of it as a lump sum and use the rest to buy an annuity. The monthly pension is the annuity corpus × the annuity rate ÷ 12 — for example, ₹45 lakh at 6% pays about ₹22,500 a month.

Up to 60% of the corpus taken as a lump sum at 60 is tax-free under Section 10(12A). The 2025 rules let non-government subscribers withdraw up to 80%, but the slice above 60% is taxable at your income-tax slab. The pension from the annuity is always taxable.

At 60, a non-government subscriber can take up to 80% of the corpus as a lump sum and must use at least 20% to buy an annuity. Government employees can take up to 60%, with at least 40% annuitised. If the corpus is ₹8 lakh or less, you can withdraw 100%.

Under the old regime, NPS contributions qualify for up to ₹1.5 lakh under Section 80CCD(1) plus an extra ₹50,000 under 80CCD(1B). Employer contributions are deductible under 80CCD(2) — up to 10% of salary — and 80CCD(2) is the only NPS deduction allowed under the new regime (up to 14%).

NPS funds are market-linked and not guaranteed. Long-term returns have averaged roughly 9–12% a year, depending on your equity-versus-debt mix (Active or Auto choice). Equity-heavy allocations sit at the higher end; government-bond funds at the lower end.

There is no fixed rule, but contributing ₹50,000 a year captures the full 80CCD(1B) tax break. For a meaningful pension, many people invest 10% of salary. Starting early matters most — ₹5,000 a month from age 30 at 10% grows to over ₹1 crore by 60.

Yes, since the 2025 reform, non-government subscribers can take up to 80% as a lump sum (only 20% must be annuitised). But only 60% is tax-free under Section 10(12A) — the extra 20% is taxed at your slab. Government employees are still capped at a 60% lump sum.

Yes. The monthly pension you receive from the annuity is fully taxable as income in the year you receive it, at your slab rate. The lump sum is different — up to 60% of the corpus is tax-free; only the portion above 60% is taxed.

EPF gives a fixed, government-set return (around 8%) and a tax-free corpus; NPS is market-linked with higher potential returns (9–12%) but forces you to annuitise part of it. Many salaried people use both — EPF for safety, NPS for the extra ₹50,000 tax break and growth.

Indian annuity rates are typically 5.5–7% depending on the annuity option you choose (e.g. life annuity with or without return of purchase price). A return-of-purchase-price annuity pays a lower rate but returns your corpus to your nominee. This calculator uses 6% by default.

Yes, since October 2025. NPS now allows up to 100% equity under Active Choice, raised from 75%, so younger subscribers can chase higher long-term growth. Auto Choice still reduces equity automatically as you age. More equity lifts both the expected return and short-term risk.

PPF gives a fixed, fully tax-free return (around 7.1%) with no annuity; NPS is market-linked (9–12%) but locks part of the corpus into a pension. NPS also gives the extra ₹50,000 deduction under 80CCD(1B) that PPF cannot. Use PPF for safety, NPS for growth and the bigger tax break.

Yes — it is free, needs no sign-up, and runs in your browser. It uses the standard NPS corpus and annuity maths and the FY 2025-26 withdrawal rules. Actual returns depend on your fund choice and market performance, and annuity rates vary by provider, so treat the figures as a well-grounded estimate.