NPS Calculator
Calculate your National Pension System corpus, lump sum and monthly pension at 60. Enter monthly contribution, age, expected return and annuity rate.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Show the formula & steps
How the NPS Calculator Works
This calculator projects your National Pension System (NPS) corpus at retirement (age 60), the tax-free lump sum you can withdraw, and the monthly pension from the annuity. Enter your monthly contribution, current age, expected return, the percentage you will annuitise, and the annuity rate, and it returns all four figures.
The Formula
Your contributions compound monthly until age 60:
Balance = (previous balance + monthly contribution) × (1 + return ÷ 12)
Repeat this for the number of months from your current age to 60. At maturity:
Annuity corpus = corpus × annuity percentage (minimum 40%) Lump sum = corpus − annuity corpus (up to 60%, tax-free) Monthly pension = annuity corpus × annuity rate ÷ 12
Worked Example
Suppose you contribute ₹5,000 per month from age 30, expect a 10% return, annuitise the minimum 40% at a 6% annuity rate:
- Months to 60 = (60 − 30) × 12 = 360
- Total invested = 5,000 × 360 = ₹18,00,000
- Corpus at 60 ≈ ₹1,13,96,627
- Annuity corpus (40%) = ₹45,58,651; lump sum (60%) = ₹68,37,976
- Monthly pension ≈ ₹22,793
Effect of Annuity Share (same ₹1.14 cr corpus, 6% annuity)
| Annuitised | Lump sum | Monthly pension |
|---|---|---|
| 40% | ₹68,37,976 | ₹22,793 |
| 50% | ₹56,98,314 | ₹28,492 |
| 100% | ₹0 | ₹56,983 |
A higher annuity share means a larger pension but a smaller (or zero) lump sum.
Why Consider NPS
- Extra tax deduction: ₹50,000 under Section 80CCD(1B), over and above the 80C limit.
- Low cost and market-linked: among the cheapest retirement products, with equity exposure for long-term growth.
- Disciplined retirement saving: funds are locked until 60, encouraging a long horizon.
Important Notes
- NPS is market-linked — the return you enter is an assumption, not a guarantee.
- At least 40% of the corpus must buy an annuity; the rest (up to 60%) is a tax-free lump sum.
- Annuity income is taxable as ordinary income in the year received.
- The pension estimate assumes a constant annuity rate; actual annuity products and rates vary by insurer.
For market-linked accumulation without the annuity rule, compare a SIP; for guaranteed returns, see a PPF or FD calculator.
Frequently asked questions
How is the NPS corpus calculated?+
Your monthly contributions compound at the expected return rate until you turn 60. Each month the running balance and the new contribution earn one-twelfth of the annual return. The accumulated balance at 60 is your NPS corpus, from which a lump sum and a pension are derived.
How much pension will I get from NPS?+
At 60 you must use at least 40% of the corpus to buy an annuity. The monthly pension is roughly the annuity corpus times the annuity rate divided by 12. For example, a ₹1.14 crore corpus with 40% annuitised at 6% gives about ₹22,793 a month, plus a tax-free lump sum.
How much of NPS can I withdraw as a lump sum?+
At maturity (age 60) you can withdraw up to 60% of the corpus as a tax-free lump sum, and at least 40% must be used to purchase an annuity that pays your monthly pension. You may also annuitise more than 40% if you want a higher pension.
What return does NPS give?+
NPS is market-linked, so returns are not fixed. Equity-heavy NPS portfolios have historically delivered around 9% to 12% over long periods, while government-bond and corporate-bond schemes earn less. The return you enter is an assumption for projection only.
Is NPS tax-free?+
Contributions get deductions under Section 80CCD, including an extra ₹50,000 under 80CCD(1B). At maturity the 60% lump sum is tax-free, but the annuity income (pension) is taxable as income in the year you receive it, at your slab rate.