Calculator
NPS Calculator
The National Pension System (NPS) is a market-linked, government-regulated retirement scheme where you contribute monthly until 60 and build a corpus across equity and debt funds. At retirement you can withdraw up to 60% tax-free as a lump sum and must use at least 40% to buy an annuity that pays a monthly pension. This calculator projects your total corpus, the tax-free lump sum, and the amount that must go into an annuity, based on your contribution, expected return, and age. Use it to see whether your NPS alone will fund retirement or needs topping up.
Amount you contribute every month.
NPS funds have historically returned ~9–11%. Not guaranteed.
Your age today.
NPS normally matures at 60.
You must put at least 40% of the corpus into an annuity.
You must use at least 40% of the corpus to buy an annuity; up to 60% can be withdrawn tax-free as a lump sum. The pension from the annuity is taxable at your slab. Returns are market-linked and not guaranteed; this is an illustration based on a constant assumed rate.
What your result means
- At 60 you can take 60% of the corpus tax-free as a lumpsum; the remaining 40% must buy an annuity, and that pension is taxed as income.
- NPS gives an extra ₹50,000 deduction under 80CCD(1B) over and above the ₹1.5 lakh 80C limit — its standout tax edge.
- It is among the lowest-cost ways to hold equity + debt, but the money is locked until 60, so treat it as a retirement-only bucket.
How to use this calculator
- Enter the amount you contribute to NPS every month.
- Set a realistic expected return — 9–11% is typical for a balanced NPS allocation.
- Enter your current age and your planned retirement age (usually 60).
- Set the annuity portion — the minimum is 40%, but a higher share means a larger pension.
- Read the corpus, then see how it splits into a tax-free lump sum and the annuity amount.
The formula
Corpus = M × [((1 + i)ⁿ − 1) ÷ i] × (1 + i), where M = monthly contribution, i = monthly return (annual ÷ 12 ÷ 100), and n = months until retirement ((retireAge − currentAge) × 12). Lump sum = Corpus × (1 − annuity%). Annuity portion = Corpus × annuity%.
Worked example
Contributing ₹5,000 a month from age 30 to 60 (30 years) at an assumed 10%: i ≈ 0.00833, n = 360. The corpus grows to about ₹1.13 crore against a total contribution of ₹18,00,000. Withdrawing 60% gives a tax-free lump sum of roughly ₹67.8 lakh, while the remaining ₹45.2 lakh buys an annuity — at a ~6% annuity rate that is around ₹22,600 a month in pension, which is taxable.
When to use it
- Checking whether your current NPS contribution will build an adequate retirement corpus.
- Seeing how much lump sum you can withdraw tax-free versus what must fund a pension.
- Planning the extra ₹50,000 deduction under Section 80CCD(1B) on top of 80C.
- Comparing NPS against EPF or equity SIPs as a retirement-savings vehicle.