NPS Calculator

The NPS is a voluntary, market-linked retirement savings scheme regulated by the PFRDA. Any Indian citizen (and NRIs) aged 18 to 70 can open a Tier-1 account, contribute regularly during their working years, and build a corpus that is partly paid out as a lump sum and partly converted into a lifelong pension at retirement.

This calculator uses the future value of a monthly annuity due: FV = C × [((1 + i)ⁿ − 1) / i] × (1 + i), where C is your monthly contribution, i is the monthly rate of return (expected annual return ÷ 12 ÷ 100) and n is the number of months until retirement, (retirement age − current age) × 12. The trailing (1 + i) reflects that each contribution is invested at the start of the month and earns one extra period of growth.

At retirement a portion of your corpus (the annuity portion) is used to buy an annuity. The calculator estimates the annual pension as that annuity amount multiplied by your expected annuity rate, then divides by 12: monthly pension = (annuity corpus × annuity rate ÷ 100) ÷ 12. The actual pension depends on the annuity plan and provider you choose, so treat this as an indicative figure.

Contributions to NPS Tier-1 qualify for a deduction under Section 80CCD(1) within the overall ₹1.5 lakh limit of Section 80C, plus an additional exclusive deduction of up to ₹50,000 under Section 80CCD(1B). Employer contributions are separately deductible under Section 80CCD(2). These deductions are available under the old tax regime; the new regime allows only the employer 80CCD(2) benefit. This calculator does not compute tax — consult a tax adviser for your liability.

Only partly. Up to 60% of your total corpus can be withdrawn as a lump sum at retirement, and that 60% is income-tax-free. Any amount withdrawn above 60% of the corpus (allowed for some subscribers under the 2025 rules) is taxable. The portion used to buy an annuity is not taxed at purchase, but the monthly pension you later receive is taxed as income in the year you receive it.

PFRDA’s NPS Exit & Withdrawal (Amendment) Regulations 2025 lowered the mandatory minimum annuity from 40% to 20% (allowing up to 80% lump sum) for eligible non-government subscribers, with 100% lump sum permitted if the corpus is ₹8 lakh or less. The classic 40% minimum still applies to government-sector normal exit. This version conservatively pins a 40% minimum as a safe default; if you qualify for the newer 20% rule, your lump sum can be larger, but remember only 60% of the corpus stays tax-free.

Tier 1 is the main retirement account: it is mandatory for NPS, has restricted withdrawals, and is the account that carries the 80CCD tax benefits and the annuity rules this calculator models. Tier 2 is an optional, voluntary savings account with no lock-in and free withdrawals, but it carries no tax benefit for most subscribers. This calculator projects a Tier-1 retirement corpus.

Yes. The annuity (pension) you receive after retirement is treated as income and taxed at your applicable income-tax slab rate in the year you receive it. By contrast, the up-to-60% lump sum withdrawn at retirement is tax-free. This calculator shows gross projected figures and does not deduct any tax.

NPS returns are market-linked and depend on your chosen asset mix of equity, corporate bonds and government securities. Long-term illustrations commonly assume around 8–10% per year for a balanced allocation, higher for equity-heavy and lower for debt-heavy portfolios. Use a conservative figure and treat the result as a projection, not a guarantee.

Normal exit is at 60 (superannuation), and you can defer withdrawal and continue contributing up to age 75, which this calculator supports through the retirement-age input (60–75). Early exit before 60 is allowed after a minimum tenure but requires a larger share of the corpus to be annuitised and only a small lump sum, so the standard 60-year projection here does not apply to early exit.

No. This version assumes a fixed monthly contribution throughout and starts from zero, so it does not model the annual contribution increase (step-up) offered by the official NPS Trust calculator, nor any existing accumulated balance. The real corpus will be higher if you step up contributions or already hold an NPS balance.

Assuming a 10% annual return compounded monthly, contributing ₹5,000 every month from age 30 to 60 builds a corpus of about ₹1.14 crore on a total investment of ₹18 lakh. With a 40% annuity at a 6% annuity rate, that gives roughly ₹68.4 lakh as a lump sum and an estimated monthly pension of about ₹22,793 — an illustration, not a guaranteed payout.

Under the PFRDA (Exits and Withdrawals under NPS) Amendment Regulations 2025, subscribers can withdraw up to 25% of their own contributions (excluding employer contributions) after completing three years in the scheme. Before age 60, up to four partial withdrawals are allowed, with a minimum gap between each. After age 60, withdrawals are permitted with a minimum three-year gap between them, with no cap on the number. Permitted purposes under the revised rules include: purchase or construction of a house (only if the subscriber does not already own one, allowed once), medical treatment of self, spouse, children or parents (no longer limited to a specific illness list), and repayment of loans taken against the NPS account balance. Purposes removed in 2025 include skill development and starting a new venture. Partial withdrawals up to 25% of own contributions are tax-exempt.

Section 80CCD(2) — the deduction for your employer's NPS contribution — is available under both the old and the new tax regime. Budget 2024 (Finance Act 2024) raised the ceiling for private-sector and other non-government employees from 10% to 14% of Basic+DA under the new regime, aligning it with the existing 14% limit for government employees. This is over and above the ₹1.5 lakh 80C ceiling, which makes it one of the few meaningful deductions still accessible to new-regime taxpayers. Note that Section 80CCD(1) (your own contribution) and 80CCD(1B) (the extra ₹50,000) are not available under the new regime — only the employer contribution deduction remains.

NPS Vatsalya is a pension scheme for minor children, launched in July 2024 under Budget 2024-25. Parents or legal guardians can open an account for a child below 18. The minimum annual contribution is ₹1,000, and on the child turning 18 the account is converted into a regular NPS Tier-1 account. Contributions are eligible for tax deduction under Section 80C. The NPS Trust website offers a dedicated NPS Vatsalya calculator. This calculator (designed for adult Tier-1 NPS) is not calibrated for the Vatsalya scheme, which has a different accumulation horizon and conversion rules at age 18. For Vatsalya projections, use the official NPS Trust tool at npstrust.org.in.