Estimate your NPS corpus, lump sum, and monthly pension in seconds — built for PFRDA's 2025 withdrawal rules and Section 10(12A) tax limits.
An NPS Calculator projects what your National Pension System contributions will grow into by retirement. It's built for salaried employees, self-employed professionals, freelancers, and NRIs who contribute to a Tier-I NPS account and want a number they can actually plan around. Enter your age, monthly contribution and expected return, and you'll see your projected corpus, lump sum, and monthly pension in one screen. If you're still figuring out how much of your salary you can realistically set aside, run your numbers through the In-Hand Salary Calculator first.
Ramesh, a 32-year-old bank employee, runs this calculator every time his salary goes up. Takes him thirty seconds, and it tells him exactly how much extra pension a ₹1,000 hike in contribution buys him at 60.
NPS uses a standard SIP future-value formula since contributions are monthly and compound over the investment period:
Corpus at Retirement (FV) = P × [((1+i)^n - 1) / i] × (1+i)
Where:
P = Monthly contribution
i = Expected annual return ÷ 12
n = Number of months left till retirement
Once the corpus is built, the split between lump sum and annuity follows the PFRDA (Exits and Withdrawals under the National Pension System) Regulations. Government subscribers still follow the older 60:40 rule: 60% lump sum, minimum 40% annuity. For non-government and All Citizen Model subscribers, PFRDA's 2025 amendment raised this to up to 80% lump sum and a minimum 20% annuity where the corpus exceeds ₹12 lakh. Full detail is on the PFRDA exits and withdrawals page.
One catch most calculators skip: Section 10(12A) of the Income-tax Act still exempts only 60% of the withdrawn corpus from tax, regardless of what PFRDA allows you to withdraw. If you take out 80%, the extra 20% gets taxed at your slab rate until the Income Tax Act itself is amended.
Take Priya, a 30-year-old private-sector employee in Chennai. She puts ₹8,000 into her NPS Tier-I account every month and plans to retire at 60. That's 30 years, or 360 months of contributions.
She expects a 10% annual return, going by NPS's typical equity-corporate bond-government security mix. Her monthly rate works out to 0.833%.
Using the formula: FV = 8,000 × [((1.00833)^360 - 1) / 0.00833] × 1.00833
Her projected corpus comes to roughly ₹1.83 crore. Total amount she actually put in over 30 years: ₹28.8 lakh. The rest, about ₹1.54 crore, is pure compounding.
Priya sticks with the standard 40% annuity allocation. That's about ₹73 lakh going toward annuity, and ₹1.1 crore available as lump sum. At a 6% annuity rate, her monthly pension after retirement comes to roughly ₹36,500. Since her lump sum is 60% of the corpus, the entire amount stays tax-free under Section 10(12A).
PFRDA's Exits and Withdrawals (Amendment) Regulations, 2025 gave private-sector and All Citizen Model subscribers real flexibility for the first time. If your corpus at retirement exceeds ₹12 lakh, you can now withdraw up to 80% as a lump sum instead of the earlier 60% cap, with only 20% mandatorily annuitized. Corpuses between ₹8-12 lakh get a mix of lump sum plus a new Systematic Unit Redemption option. Anything up to ₹8 lakh can be withdrawn in full.
Government employees haven't seen a change. They're still on the 60:40 structure. If you're weighing NPS against the older pension track, the Higher Pension EPS Calculator shows what the Employees' Pension Scheme route would pay instead. Here's the part that trips people up: even though PFRDA allows 80% lump sum now, the Income Tax Act's Section 10(12A) exemption is capped at 60%. [VERIFY: exact incometax.gov.in citation for Section 10(12A) exemption cap]. Tax authorities haven't amended this yet, so anything you withdraw beyond 60% gets added to your taxable income for that year.
On the contribution side, Section 80CCD(1B) still gives you an extra ₹50,000 deduction over the ₹1.5 lakh 80C limit, but only if you're on the old tax regime. Employer contributions under Section 80CCD(2), up to 10% of basic plus DA, work under both old and new regimes.
No. NPS is a market-linked scheme, so your actual corpus depends on real fund performance across equity, corporate bonds and government securities. This calculator gives you a projection based on the return rate you enter, not a guaranteed outcome. Treat it as a planning tool, not a promise.
Only if your total corpus at retirement is ₹8 lakh or less. Above that, PFRDA requires a minimum annuity purchase: 20% for most non-government subscribers with over ₹12 lakh, or 40% if you're a government employee. You can't skip the annuity requirement above these thresholds.
PFRDA's 2025 amendment does allow up to 80% lump sum for eligible non-government subscribers. But Section 10(12A) of the Income Tax Act still exempts only 60% from tax. This calculator lets you set your own annuity allocation so you can see both scenarios and the tax impact.
Only partially. Section 80CCD(1) and 80CCD(1B) deductions are old-regime only. Section 80CCD(2), covering employer contributions up to 10% of basic salary, is available under both the old and new regimes.
Tier-I is your core retirement account with withdrawal restrictions and tax benefits under Section 80CCD. Tier-II is a voluntary, flexible savings account with no lock-in and generally no tax deduction on contributions. [VERIFY: whether a 3-year lock-in variant with a separate tax deduction is still available to central government employees under current rules]
Your annuity corpus, the portion mandatorily used to buy an annuity, is handed to a PFRDA-empanelled annuity service provider. They pay you monthly based on the annuity rate they offer, usually 5-7% annually. This calculator applies that rate to your projected annuity corpus.
Yes, NRIs between 18 and 70 can open an NPS Tier-I account and contribute in rupees through NRE or NRO accounts. The corpus projection and withdrawal rules work the same way as for resident Indians. [VERIFY: current RBI repatriation conditions applicable to NPS maturity proceeds for NRIs]
If you're planning retirement income more broadly, check the UPS Pension Calculator to compare against the Unified Pension Scheme, or the GPF Calculator if you're a government employee also contributing to GPF. For a target-based view, the NPS Calculator for ₹1 Lakh Pension per Month works backward from a pension goal to the contribution you'd need.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
Explore other tools in the same category or find similar calculators