NPS Calculator (National Pension System)
Estimate your retirement corpus, tax-free lump sum, and monthly pension from NPS. Free, no login, nothing stored.
Non-Government: up to 80% lump sum, min 20% annuity. Government: up to 60% lump sum, min 40% annuity.
NPS returns are market-linked and not guaranteed. This calculator shows an illustrative projection only.
What Is the National Pension System (NPS)?
The National Pension System is a market-linked, voluntary retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority), open to Indian citizens. Unlike Atal Pension Yojana, which pays a fixed guaranteed pension, NPS invests your contributions in a mix of equity, corporate bonds, and government securities, so your final corpus depends on market performance and the fund manager you choose. At exit, part of the corpus is taken as a tax-free lump sum, and the remainder is used to purchase an annuity that pays you a monthly pension for life.
Free, No Login, No Data Stored
This calculator runs entirely in your browser. There is no sign-up, no account, and nothing you enter is saved, tracked, or sent anywhere. It's free to use as many times as you need.
How to Use This NPS Calculator
- Enter your current age and the age at which you plan to exit NPS.
- Enter your monthly contribution amount.
- Choose an expected annual return - NPS equity-heavy portfolios have historically aimed for 8-12% long-term, though returns are never guaranteed.
- Select your subscriber type - Non-Government subscribers can withdraw up to 80% of the corpus as a lump sum, while Government Employees follow the older 60% lump sum / 40% annuity structure.
- Choose your lump sum percentage and expected annuity rate to see your projected monthly pension.
How the Corpus and Pension Are Calculated
Corpus = P x [ ((1+i)^n - 1) / i ] x (1+i)where P is the monthly contribution, i is the monthly rate of return, and n is the total number of months until exit.
Lump Sum = Corpus x Lump Sum % and Annuity Amount = Corpus - Lump Sum. The lump sum portion is tax-free under Section 10(12A); the annuity portion is used to buy a pension plan.
Monthly Pension = (Annuity Amount x Annuity Rate) / 12. The actual annuity rate depends on the annuity provider and plan chosen at the time of exit.
Lump Sum and Annuity Rules (as of 2026)
PFRDA revised NPS exit rules significantly in late 2025. The split between lump sum and mandatory annuity purchase now depends on subscriber category:
| Subscriber Type | Maximum Lump Sum | Minimum Annuity |
|---|---|---|
| Non-Government (All Citizens model) | Up to 80% | At least 20% |
| Government Employee | Up to 60% | At least 40% |
Additional slab-based rules apply for smaller corpus sizes and premature exit before age 60, where a higher portion may need to go toward annuity. Always confirm the latest applicable rules with PFRDA or your NPS fund manager before making an exit decision.
Tax Benefits Under NPS
- Section 80CCD(1): Employee or self-employed contributions qualify within the overall INR 1.5 lakh Section 80C limit (capped at 10% of salary for employees, 20% of gross income for self-employed).
- Section 80CCD(1B): An additional deduction of up to INR 50,000 per year, over and above the INR 1.5 lakh limit - exclusive to NPS (and shared with APY contributions).
- Section 80CCD(2): Employer contributions to an employee's NPS account are deductible separately, subject to prescribed limits, and do not count against the 80C/80CCD(1B) ceilings.
- These deductions apply under the old tax regime. Under the new tax regime, only the employer's 80CCD(2) contribution remains deductible.
Who Is This Calculator For?
- Salaried professionals planning long-term retirement savings alongside EPF.
- Self-employed individuals without access to employer-sponsored retirement benefits.
- Anyone comparing NPS with other retirement options like PPF, EPF, or Atal Pension Yojana.
NPS vs Atal Pension Yojana (APY)
| Feature | NPS | Atal Pension Yojana |
|---|---|---|
| Returns | Market-linked, not guaranteed | Fixed, government-guaranteed pension |
| Pension amount | Depends on corpus and annuity rate at exit | Fixed slab: INR 1,000 to INR 5,000/month |
| Entry age | Up to 70 years for new accounts | 18 to 40 years |
| Contribution flexibility | Flexible, no fixed monthly amount required | Fixed monthly amount based on age and pension slab |
| Best suited for | Building a larger, growth-oriented retirement corpus | A guaranteed, low-risk pension floor |
Frequently Asked Questions
Are NPS returns guaranteed?
No. NPS is a market-linked scheme, so your final corpus depends on the performance of the equity, corporate bond, and government securities funds you choose. This calculator shows an illustrative projection based on the return rate you enter, not a guaranteed outcome.
How much of my NPS corpus can I withdraw as a lump sum?
As of the PFRDA rules updated in late 2025, non-government subscribers can withdraw up to 80% of their corpus as a tax-free lump sum, with the remaining 20% mandatorily used to buy an annuity. Government employees continue under the earlier 60% lump sum, 40% annuity structure.
Is the NPS lump sum withdrawal taxable?
The lump sum portion withdrawn at exit is tax-free under Section 10(12A) of the Income Tax Act. However, the monthly pension received from the annuity is taxable as income at your applicable slab rate.
What is the maximum age to join NPS?
Following regulatory changes, Indian citizens can open a new NPS account up to age 70, and existing accounts can now be continued up to age 85, giving subscribers much greater flexibility for late-stage retirement planning.
Can I contribute to both NPS and Atal Pension Yojana?
Yes, NPS and APY are separate schemes with separate account numbers, and there is no restriction preventing you from holding both simultaneously, subject to each scheme's own eligibility rules.
What happens to my NPS corpus if I exit before age 60?
Premature exit rules are stricter than normal retirement exit - a much larger portion of the corpus, generally at least 80%, must go toward purchasing an annuity, with only a small percentage available as a lump sum, and minimum tenure conditions may also apply.
Is this NPS calculator free to use?
Yes, completely free, with no login and no data stored, and works on both mobile and desktop.
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