NPS Calculator
Estimate your National Pension System (NPS) corpus at retirement, along with the annuity and lump sum split and an estimated monthly pension.
- Free to use
- No registration required
- Works on all devices
- Last updated
- 17-09-2026
Your result
₹1,13,96,626.62
Total corpus at retirement
AI explanation
Formula
Corpus via the annuity-due SIP formula; at least 40% must fund an annuity, up to 60% can be withdrawn as a lump sumWorked examples
Age 30, ₹5,000/month, 10% return, retiring at 60
| Field | Value |
|---|---|
| Current age | 30 |
| Retirement age | 60 |
| Monthly contribution | ₹5,000 |
| Expected annual return | 10 |
| Corpus used for annuity | 40 |
| Expected annuity rate | 6 |
| Total corpus at retirement | ₹1,13,96,626.62 |
| Lump sum withdrawal | ₹68,37,975.97 |
| Annuity corpus | ₹45,58,650.65 |
| Estimated monthly pension | ₹22,793.25 |
Late starter at 45, ₹15,000/month, retiring at 60
| Field | Value |
|---|---|
| Current age | 45 |
| Retirement age | 60 |
| Monthly contribution | ₹15,000 |
| Expected annual return | 10 |
| Corpus used for annuity | 40 |
| Expected annuity rate | 6 |
| Total corpus at retirement | ₹62,68,863.99 |
| Total contributed | ₹27,00,000 |
| Lump sum withdrawal | ₹37,61,318.39 |
| Annuity corpus | ₹25,07,545.59 |
| Estimated monthly pension | ₹12,537.73 |
Early starter at 25, ₹3,000/month, retiring at 60
| Field | Value |
|---|---|
| Current age | 25 |
| Retirement age | 60 |
| Monthly contribution | ₹3,000 |
| Expected annual return | 10 |
| Corpus used for annuity | 40 |
| Expected annuity rate | 6 |
| Total corpus at retirement | ₹1,14,84,830.11 |
| Total contributed | ₹12,60,000 |
| Lump sum withdrawal | ₹68,90,898.06 |
| Annuity corpus | ₹45,93,932.04 |
| Estimated monthly pension | ₹22,969.66 |
Age 30, ₹5,000/month, voluntary 80% annuity purchase
| Field | Value |
|---|---|
| Current age | 30 |
| Retirement age | 60 |
| Monthly contribution | ₹5,000 |
| Expected annual return | 10 |
| Corpus used for annuity | 80 |
| Expected annuity rate | 6 |
| Total corpus at retirement | ₹1,13,96,626.62 |
| Total contributed | ₹18,00,000 |
| Lump sum withdrawal | ₹22,79,325.32 |
| Annuity corpus | ₹91,17,301.30 |
| Estimated monthly pension | ₹45,586.51 |
Assumptions
- By NPS rules, at least 40% of the corpus must go toward purchasing an annuity, with the remainder available as a lump sum (fully tax-free up to 60% under current rules).
- The monthly pension is a simple annuity-rate estimate — actual annuity payouts depend on the specific annuity provider and plan chosen at retirement.
- The projection assumes uninterrupted monthly contributions of a constant amount from the current age to the entered retirement age, compounding monthly at the entered expected annual return.
- The annuity-purchase percentage can be set anywhere from the mandatory 40% minimum up to 100% — choosing a higher percentage than the minimum increases the projected monthly pension but reduces the lump sum available at retirement.
Frequently asked questions
What is NPS?
The National Pension System is a government-regulated, market-linked retirement savings scheme where contributions accumulate until retirement, then partly convert into a pension annuity.
Why can't I withdraw my entire NPS corpus as a lump sum?
NPS rules require at least 40% of the corpus to purchase an annuity, ensuring a regular pension income — this is a structural feature of the scheme, not optional.
Does NPS offer tax benefits?
Yes — NPS contributions qualify for tax deductions under Section 80CCD, including an additional ₹50,000 deduction under 80CCD(1B) beyond the standard 80C limit.
Does raising the annuity-purchase percentage above 40% change my results?
Yes. This calculator lets you set the annuity-purchase percentage anywhere from the mandatory 40% minimum up to 100%. Raising it directs a larger share of your corpus into the annuity, which increases the estimated monthly pension but reduces the lump sum available at retirement.
Is the estimated monthly pension guaranteed for life?
No. The monthly pension shown here is a simple annuity-rate estimate on the annuity corpus — actual annuity payouts depend on the specific annuity provider and plan chosen at retirement, and rates vary between providers. Treat this figure as an approximation rather than a guaranteed payout.
Is the lump sum I withdraw from NPS taxable?
Under current rules, the lump sum share of the corpus is fully tax-free up to 60% of the total corpus — which lines up with the maximum share this calculator allows you to withdraw as a lump sum, since at least 40% must fund the annuity.
Which body regulates the National Pension System, and since when?
NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), a government body, with the scheme in effect since 2004.
Why does starting NPS contributions earlier make such a large difference to the final corpus?
Because the corpus grows through monthly compounding over the full contribution period, the years contributed early on have far longer to compound than years contributed just before retirement. As a result, a smaller monthly contribution started at a younger age over a longer period can build a larger corpus than a bigger monthly contribution started later over a shorter period — the number of compounding years matters as much as the amount contributed each month.
How is NPS Tier I different from Tier II?
Tier II is a voluntary, flexible savings account with no lock-in and no mandatory annuity requirement, but it doesn't get the same tax benefits as Tier I contributions.
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Sources
- National Pension System — Pension Fund Regulatory and Development Authority (PFRDA). Effective 01-01-2004, checked 13-09-2026.
This calculator provides a general estimate only and does not constitute financial or retirement planning advice. Actual annuity rates vary by provider and plan.
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