Updated June 2026

NPS Calculator

How much will your NPS corpus be at retirement? See the lump sum vs annuity split, your estimated monthly pension — and what it's actually worth after inflation eats into it.

₹
yrs
yrs
%
%
%
Total Contributed
Returns Earned
Total Corpus at 60

₹1.14 Cr

Lump Sum (tax-free)

₹68.38 L

Annuity Corpus

₹45.59 L

Est. Monthly Pension

₹22,793

Total Invested

₹18.00 L

NPS Corpus Growth

₹0₹31.3L₹62.7L₹94.0L₹1.3Cr1Y6Y11Y16Y21Y26Y30Y
Corpus Value
Contributed

Year-wise Breakdown

30 years
YearAgeContributedCorpus
131₹60,000₹63,351
232₹1,20,000₹1,33,337
333₹1,80,000₹2,10,650
434₹2,40,000₹2,96,059
535₹3,00,000₹3,90,412
636₹3,60,000₹4,94,645
737₹4,20,000₹6,09,792
838₹4,80,000₹7,36,996
939₹5,40,000₹8,77,521
1040₹6,00,000₹10,32,760
1141₹6,60,000₹12,04,255
1242₹7,20,000₹13,93,708
1343₹7,80,000₹16,02,998
1444₹8,40,000₹18,34,205
1545₹9,00,000₹20,89,621
1646₹9,60,000₹23,71,783
1747₹10,20,000₹26,83,492
1848₹10,80,000₹30,27,840
1949₹11,40,000₹34,08,245
2050₹12,00,000₹38,28,485
2151₹12,60,000₹42,92,728
2252₹13,20,000₹48,05,584
2353₹13,80,000₹53,72,143
2454₹14,40,000₹59,98,028
2555₹15,00,000₹66,89,452
2656₹15,60,000₹74,53,276
2757₹16,20,000₹82,97,083
2858₹16,80,000₹92,29,247
2959₹17,40,000₹1,02,59,022
3060₹18,00,000₹1,13,96,627

How NPS Works

The National Pension System (NPS) is a defined-contribution pension scheme regulated by PFRDA. You contribute monthly from your working years, the money is invested in a mix of equity, corporate bonds, and government securities, and at retirement you receive a portion as lump sum and the rest as monthly pension.

NPS Corpus Calculation Formula

NPS uses compound interest on monthly contributions:

FV = P × [((1+r)n - 1) / r] × (1+r)

Where P = monthly contribution, r = monthly rate of return, n = total months until retirement.

The 60-40 Split at Retirement

At age 60, PFRDA rules require you to use at least 40% of your corpus to purchase an annuity (pension plan). The remaining up to 60% can be withdrawn as a tax-free lump sum. You can choose to put more than 40% into annuity if you want a higher monthly pension.

For example, if your NPS corpus is ₹1 crore at retirement:

  • Lump sum (60%): ₹60 lakh — completely tax-free since Budget 2019
  • Annuity (40%): ₹40 lakh → at 6% annuity rate = ~₹20,000/month pension (taxable as income)

NPS Tax Benefits (Section 80CCD)

NPS offers one of the best tax deductions available:

  • 80CCD(1): Your own contribution — up to 10% of salary (max ₹1.5 lakh, shared with 80C)
  • 80CCD(1B): Additional ₹50,000 over and above the 80C limit — exclusive to NPS
  • 80CCD(2): Employer contribution — up to 14% of salary for central govt, 10% for others (no cap)

At 30% tax bracket, the 80CCD(1B) deduction alone saves you ₹15,600/year in taxes.

What Makes This Calculator Different

Most NPS calculators show you a large number at retirement and call it a day. But that number is in future rupees — not today's purchasing power. At 6% inflation over 30 years, ₹3 crore at retirement buys what ~₹52 lakh buys today.

Our inflation toggle reveals the reality: your estimated monthly pension of ₹50,000 might only feel like ₹8,700 in today's terms over a 30-year horizon. This helps you decide whether NPS alone is enough, or whether you need SIP/PPF alongside.

How to Use This NPS Calculator

  1. Enter your monthly NPS contribution amount
  2. Set your current age and planned retirement age
  3. Choose expected return rate (10% is reasonable for equity-heavy allocation)
  4. Adjust the annuity percentage (40% minimum, you can go higher for more pension)
  5. Set the expected annuity rate (6% is typical from insurers)
  6. Toggle inflation to see the real value of your retirement corpus and pension

Frequently Asked Questions

What is NPS (National Pension System)?
NPS is a government-backed retirement savings scheme regulated by PFRDA. It allows salaried and self-employed individuals to build a pension corpus through regular contributions invested in equity, corporate bonds, and government securities.
What is the minimum and maximum NPS contribution?
The minimum contribution is ₹500 per month or ₹6,000 per year for Tier I. There is no upper limit on contributions, though tax deductions are capped — ₹1.5 lakh under 80CCD(1) within the 80C limit, plus an additional ₹50,000 under 80CCD(1B).
How much of the NPS corpus can I withdraw at retirement?
At age 60, you can withdraw up to 60% of the corpus as a tax-free lump sum. The remaining minimum 40% must be used to purchase an annuity plan from a PFRDA-empaneled insurance company, which provides monthly pension income.
Is NPS withdrawal tax-free?
Yes, since Budget 2019, the entire 60% lump sum withdrawal at maturity is tax-free. However, the monthly pension income from the annuity portion is taxable as regular income under your applicable slab.
What are the NPS tax benefits?
You get three tax deductions: (1) Up to ₹1.5 lakh under Section 80CCD(1) as part of the 80C limit, (2) Additional ₹50,000 under Section 80CCD(1B), and (3) Employer contribution up to 14% of salary (central govt) or 10% (others) under 80CCD(2) — no upper limit.
What returns can I expect from NPS?
NPS returns depend on your asset allocation. Historically, equity (E) has given 10-12% CAGR, corporate bonds (C) around 8-10%, and government securities (G) around 7-9%. A balanced 50:30:20 (E:C:G) allocation has delivered ~10% over 10+ years.
What is the difference between NPS Tier I and Tier II?
Tier I is the primary pension account with a lock-in until age 60 (partial withdrawal allowed after 3 years for specific purposes). Tier II is a voluntary savings account with no lock-in — you can withdraw anytime, but it doesn't get the 80CCD(1B) tax benefit (except for government employees).
How does the annuity work in NPS?
At retirement, you use the annuity portion to buy a pension plan from insurers like LIC, SBI Life, etc. The annuity rate (typically 5-7%) determines your monthly pension. For example, ₹50 lakh annuity at 6% = ₹25,000/month pension. This pension is taxable as income.

Related Calculators

PPF Calculator

Tax-free returns — compare with NPS

 SIP Calculator

Equity mutual funds alongside NPS

 SWP Calculator

Plan systematic withdrawals from retirement corpus