Quick Answer
Enter your monthly contribution, age, exit age and expected return. For example, ₹5,000 a month from age 30 to 60 at 10% a year could grow to about ₹1.13 crore. Under PFRDA's new exit rules, a non-government subscriber must use at least 20% (about ₹22.6 lakh) to buy an annuity — at 6% that is a pension of about ₹11,300 a month — and can take the remaining ₹90.4 lakh as a lump sum or in instalments. Returns are not guaranteed.
What is the NPS Calculator?
The National Pension System (NPS, राष्ट्रीय पेंशन प्रणाली) is a government-regulated retirement scheme run under the Pension Fund Regulatory and Development Authority (PFRDA). You contribute regularly during your working life, the money is invested in a mix of equity, corporate bonds and government securities, and at retirement you take part of it as a lump sum and use part to buy an annuity that pays a monthly pension. Any Indian citizen aged 18 to 70 can join, and many employers offer it as part of salary.
This free NPS calculator estimates how large your corpus could become, how much you can withdraw as a lump sum and how much pension the annuity could pay — using the new exit rules PFRDA notified in December 2025, which cut the minimum annuity for non-government subscribers from 40% to 20%.
Key Features
- Corpus projection with monthly compounding.
- Yearly contribution increase to match salary growth.
- Current exit rules — 20% minimum annuity (non-government), 40% (government).
- Small-corpus rule — full withdrawal shown when the corpus is ₹8 lakh or less.
- Lump sum and pension split, with a chart.
- Private — runs in your browser.
How to Use the NPS Calculator
- Enter your monthly contribution.
- Enter your current age and exit age (normally 60).
- Choose an expected return — 8–10% is a reasonable long-term assumption.
- Add a yearly increase if you plan to raise contributions with salary.
- Pick All Citizen/corporate or government; the minimum annuity share is set automatically (you can choose more).
- Set the annuity rate (around 6% is typical) and read the results.
How the Calculation Works
Each month your balance grows by one-twelfth of the expected annual return and your contribution is added. If you set a yearly increase, the contribution rises once a year. At exit:
- Annuity amount = corpus × annuity share.
- Lump sum = corpus − annuity amount.
- Monthly pension = annuity amount × annuity rate ÷ 12.
Example: ₹5,000 a month from 30 to 60 at 10% builds about ₹1.13 crore from ₹18 lakh of contributions. With the 20% minimum annuity, about ₹22.6 lakh buys a pension of roughly ₹11,300 a month at 6%, and about ₹90.4 lakh can be withdrawn. Choosing a 40% annuity would roughly double the pension to ₹22,600 and reduce the lump sum to about ₹67.8 lakh.
How Much Could Your NPS Grow? (10% a year)
| Monthly contribution | 20 years | 25 years | 30 years |
|---|---|---|---|
| ₹2,000 | ₹15.2 lakh | ₹26.5 lakh | ₹45.2 lakh |
| ₹5,000 | ₹38.0 lakh | ₹66.3 lakh | ₹1.13 crore |
| ₹10,000 | ₹75.9 lakh | ₹1.33 crore | ₹2.26 crore |
The jump from 25 to 30 years is far larger than from 20 to 25 — that is compounding at work, and why starting even five years earlier matters so much. The return assumption matters just as much: ₹5,000 a month for 30 years becomes about ₹74.5 lakh at 8% but about ₹1.75 crore at 12%. Use the calculator to test a cautious and an optimistic return and plan with the cautious one.
NPS Exit Rules (December 2025)
| Subscriber | Minimum annuity at normal exit | Lump sum / withdrawals |
|---|---|---|
| All Citizen & corporate (non-government) | 20% of corpus | Up to 80% as lump sum or periodic withdrawals |
| Non-government, corpus ≤ ₹8 lakh | None | Full withdrawal allowed |
| Government employees | 40% of corpus | Up to 60% |
Reports on the regulations also describe a middle band (corpus between ₹8 lakh and ₹12 lakh) with a capped lump sum and the balance paid through instalments or an annuity, deferment of exit up to age 85, and conditions such as 15 years in NPS or reaching 60 for the 20% rule. Because these details and the tax treatment of the larger lump sum have been described differently by different sources, check the current rules with PFRDA or your Point of Presence (POP) before you exit.
What Return Should You Assume?
NPS lets you choose how your money is invested:
- Active choice — you set the share in equity (E), corporate bonds (C), government securities (G) and alternative assets, within the equity limit allowed for your account and scheme.
- Auto choice — life-cycle funds that reduce equity as you age (aggressive, moderate or conservative).
Equity-heavy schemes have historically returned more over long periods, but with ups and downs; government bond schemes are steadier and lower. Use 8% for a cautious estimate, 10% for a balanced long-term plan and test both. Small differences matter enormously over 30 years.
NPS Tax Benefits
| Benefit | Old regime | New regime |
|---|---|---|
| Own contribution, 80CCD(1) | Up to ₹1.5 lakh (within 80C) | Not available |
| Extra own contribution, 80CCD(1B) | Up to ₹50,000 | Not available |
| Employer contribution, 80CCD(2) | Up to 10% of basic + DA (14% for govt) | Up to 14% of basic + DA |
Employer contributions under 80CCD(2) are one of the few deductions available in the new regime, so asking your employer to route part of your CTC to NPS can lower tax regardless of regime (within the combined ₹7.5 lakh limit on employer retirement contributions). Annuity pension is taxable as income in the year received.
NPS vs EPF vs PPF
- NPS — market-linked, potentially higher returns, part annuity at exit, extra ₹50,000 deduction (old regime).
- EPF — fixed declared rate (8.25% for FY 2025-26), employer contribution, for salaried employees.
- PPF — government-backed 7.1%, 15-year lock-in, fully tax-free.
A mix often works best: EPF/PPF for safety and NPS or equity funds for growth. Compare with our EPF Calculator and PPF Calculator.
Using the Lump Sum Wisely
With up to 80% available as a lump sum, the bigger question becomes how to use it. Many retirees keep an emergency fund, clear any loans, and invest the rest in a mix of safe instruments (such as the Senior Citizens' Savings Scheme) and a systematic withdrawal plan from mutual funds. Our SWP Calculator shows how long a corpus lasts at a given monthly withdrawal, and the Post Office MIS & SCSS Calculator shows guaranteed monthly or quarterly income.
How to Open an NPS Account
- Go online through eNPS on the NSDL or KFintech (CRA) portals, or visit a bank branch that acts as a Point of Presence.
- Complete KYC with Aadhaar or PAN and your bank details.
- Choose Tier I (and optionally Tier II), a pension fund manager and active or auto choice.
- Make the first contribution and note your PRAN (Permanent Retirement Account Number).
Common Mistakes to Avoid
- Assuming guaranteed returns — NPS is market-linked.
- Ignoring the annuity rate — it varies by insurer and age; compare before buying.
- Starting late — 10 extra years of contributions can more than double the corpus.
- Using outdated 40% rules for non-government accounts — the minimum is now 20%.
- Forgetting nominee details — update your nominee in the CRA portal so your family can claim smoothly.
Quick Glossary
- PFRDA: Pension Fund Regulatory and Development Authority.
- PRAN: Permanent Retirement Account Number.
- Annuity: a regular pension bought from an insurer with a lump sum.
- Tier I / Tier II: pension account / optional flexible account.
- POP: Point of Presence — banks and other entities that service NPS accounts.
Why Use This NPS Calculator?
It uses the latest PFRDA exit rules, shows corpus, lump sum and pension together, lets you test different returns and annuity shares, and keeps your data private — a quick, honest view of your NPS retirement. Recheck your plan every year, especially when your salary or the rules change.
NPS Calculator — Key Facts
| Minimum annuity | 20% (All Citizen / corporate), 40% (government) |
|---|---|
| Small corpus | ≤ ₹8 lakh can be withdrawn fully (non-govt) |
| Exit age | 60 (can defer up to 85) |
| Returns | Market-linked; depends on scheme mix |
| Tax (old regime) | Extra ₹50,000 deduction under 80CCD(1B) |
| Regulator | PFRDA |
Frequently Asked Questions
How does the NPS calculator work?
It adds your monthly contribution and grows the balance at the expected return every month until your exit age. At exit it applies the annuity share you choose (at least 20% for non-government subscribers, 40% for government) and estimates the pension from the annuity rate.
What are the new NPS withdrawal rules?
Under PFRDA's December 2025 exit regulations, non-government (All Citizen and corporate) subscribers need to buy an annuity with only 20% of the corpus, down from 40%, and can take up to 80% as lump sum or periodic withdrawals. A corpus of ₹8 lakh or less can be withdrawn fully. Government subscribers continue with a 40% minimum annuity.
How much pension will I get from NPS?
Pension depends on the amount used for the annuity and the annuity rate. For example, ₹22.6 lakh at a 6% annuity rate gives about ₹11,300 a month. Higher annuity shares give higher pensions but a smaller lump sum.
What return should I assume for NPS?
NPS returns depend on your mix of equity (E), corporate bonds (C) and government securities (G). Long-term equity-heavy schemes have historically delivered roughly 9–12% a year, but past returns don't guarantee future results. Try a conservative 8–10%.
What tax benefits does NPS give?
In the old regime, you can claim up to ₹1.5 lakh under 80CCD(1) within 80C and an extra ₹50,000 under 80CCD(1B). Employer contributions under 80CCD(2) are deductible in both regimes, up to 14% of basic + DA in the new regime and 10% in the old (14% for government employers).
Is the NPS lump sum tax-free?
A large part of the lump sum at exit is tax-free under current law, while annuity income is taxed at your slab rate. Because tax treatment of the larger lump sum under the new rules has been described differently by different sources, confirm with a tax advisor.
Can I exit NPS before 60?
Premature exit is possible after a minimum period, but a larger share must usually be used to buy an annuity. Check the latest PFRDA rules for your account type.
Can I continue NPS after 60?
Yes. You can defer the lump sum or annuity and stay invested, now up to age 85 under the revised rules.
What is the difference between Tier I and Tier II?
Tier I is the pension account with tax benefits and withdrawal restrictions. Tier II is an optional, flexible investment account without those restrictions (and generally without tax benefits).
What is an annuity rate?
The yearly percentage an insurance company pays as pension on the amount you use to buy an annuity. Rates vary by insurer, age and annuity type, typically around 5.5–7.5%.
Is this NPS calculator accurate?
It uses standard compounding and the current exit rules, but actual results depend on market returns, charges, the annuity rate at exit and rule changes. Treat it as an estimate.
Is the NPS calculator free?
Yes. It is free and your details stay in your browser.
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