NPS Tier I Calculator

Estimate your NPS Tier I retirement corpus, annuity/lump-sum split, and monthly pension — the primary, lock-in retirement account under the National Pension System.

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Enter your age, monthly contribution, and expected return to estimate your NPS Tier I corpus, with at least 40% going toward an annuity at retirement.

Current age *

years

Retirement age *

years

Monthly contribution *

₹

Expected annual return *

Corpus used for annuity *

NPS rules require at least 40% of the Tier I corpus to buy an annuity.

Expected annuity rate *

Your result

₹1,13,96,626.62

Total Tier I corpus at retirement

Lump sum withdrawal (up to 60%)₹68,37,975.97

Annuity corpus (at least 40%)₹45,58,650.65

Estimated monthly pension₹22,793.25

Total contributed₹18,00,000

AI explanation

Formula

Corpus via the annuity-due SIP formula; Tier I rules require at least 40% to fund an annuity, up to 60% can be withdrawn as a lump sum

Worked example

Age 30, ₹5,000/month, 10% return, retiring at 60

Worked example: Age 30, ₹5,000/month, 10% return, retiring at 60
Field	Value
Current age	30
Retirement age	60
Monthly contribution	5000
Expected annual return	10
Corpus used for annuity	40
Expected annuity rate	6
Total Tier I corpus at retirement	11396626.62
Lump sum withdrawal (up to 60%)	6837975.97
Annuity corpus (at least 40%)	4558650.65
Estimated monthly pension	22793.25

Assumptions

Tier I is the primary NPS account with a retirement lock-in — withdrawals before 60 are restricted to specific circumstances.
At least 40% of the corpus must fund an annuity by rule; up to 60% can be withdrawn as a tax-free lump sum.
The monthly pension is a simple annuity-rate estimate — actual payouts depend on the annuity provider and plan chosen at retirement.

Frequently asked questions

What is NPS Tier I?

The primary, mandatory NPS account with tax benefits and a retirement lock-in — funds can only be withdrawn under specific conditions before age 60, with at least 40% going toward an annuity at exit.

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.

What tax deductions apply to Tier I contributions?

Tier I contributions qualify under Section 80CCD(1) (within the overall ₹1.5 lakh 80C limit) plus an additional ₹50,000 deduction under Section 80CCD(1B), available only in the old tax regime.

Related calculators

Sources

National Pension System — Tier I account rules — Pension Fund Regulatory and Development Authority (PFRDA). Effective 01-01-2004, reviewed 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 chosen at exit.

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