NPS Calculator
NPS corpus at retirement with a yearly contribution increase, the lump sum and annuity split under the current exit rules, and the monthly pension.
₹5,000 a month into NPS from age 30, raised 5% a year, at a 10% return builds a corpus of about ₹1.66 crore by 60. With 20% in an annuity at 6.5%, that is a lump sum of about ₹1.33 crore and a pension of about ₹17,977 a month. The calculator applies the current exit rules for government and non-government subscribers.
The National Pension System is a market-linked retirement account regulated by PFRDA. You choose how much goes into equity, corporate bonds and government bonds; at retirement part of the corpus must buy an annuity, which pays a monthly pension, and the rest can be taken as a lump sum.
The calculator projects the corpus, applies the minimum annuity share for your subscriber type, and converts the annuity part into a monthly pension at the rate you enter.
Exit rules used here
PFRDA amended the NPS exit regulations in December 2025. As reported, at normal exit (60, or later up to 85) non-government subscribers (All Citizen and corporate NPS) must use at least 20% of the corpus for an annuity and can take up to 80% as a lump sum; government employees must annuitise at least 40%. Small corpuses can be withdrawn in full. Exits before 60 require a much larger annuity share. Check PFRDA's current rules before you decide; they have changed several times.
How the projection works
Each month's contribution is added and the balance grows at (1 + R)1/12 − 1, the monthly rate that compounds to your annual return R. The contribution rises once a year by the increase you set. At retirement, corpus × annuity share buys the annuity, and pension = annuity amount × annuity rate ÷ 12.
₹5,000 a month from 30 to 60, rising 5% a year, at different returns:
| Return | Corpus at 60 | Monthly pension (20% annuity at 6.5%) |
|---|---|---|
| 8% | ₹1.20 crore | ₹12,971 |
| 10% | ₹1.66 crore | ₹17,977 |
| 12% | ₹2.34 crore | ₹25,327 |
Tax
Contributions: up to ₹1.5 lakh under section 80CCD(1) within the 80C limit, plus an extra ₹50,000 under 80CCD(1B), in the old regime. Employer contributions are deductible under 80CCD(2) in both regimes, within a percentage of salary. At exit, up to 60% of the corpus taken as a lump sum is tax-free under section 10(12A); the annuity is taxed as income when it is paid.
NPS Vatsalya
Parents can open NPS Vatsalya for a child. It converts to a regular NPS account at 18. Enter the child's age as the current age to project it.
Limits
NPS returns vary with the market and your asset mix; the calculator assumes a steady rate. Annuity rates depend on the insurer, your age and the option you choose (with or without return of purchase price). Inflation means the pension buys less each year unless you choose an increasing annuity.
Key takeaways
- ₹5,000 a month from 30, +5% a year, at 10% builds about ₹1.66 crore by 60.
- Non-government subscribers need to annuitise at least 20% at normal exit; government employees 40%.
- Up to 60% of the corpus is tax-free as a lump sum; the pension is taxed as income.
Frequently asked questions
How is NPS pension calculated?
Corpus × annuity share buys an annuity; the monthly pension is roughly that amount × the annuity rate ÷ 12. The rate depends on the insurer and the annuity option.
What is the NPS lump sum limit?
Under the rules amended in December 2025, as reported: up to 80% for non-government subscribers and 60% for government employees at normal exit. Up to 60% of the corpus is tax-free.
How much pension will I get for ₹5,000 a month in NPS?
Starting at 30 with a 5% yearly increase and a 10% return, about ₹17,977 a month from a 20% annuity at 6.5%, or about ₹35,953 a month from a 40% annuity.
What return does NPS give?
It depends on your mix of equity, corporate bonds and government bonds, and on the fund manager. Funds with more equity have returned more over long periods, with larger swings. Use 8-10% for planning and test both ends.
Is NPS better than PPF?
They differ. PPF is guaranteed and fully tax-free but capped at ₹1.5 lakh a year; NPS is market-linked, has an extra ₹50,000 deduction in the old regime, and requires part of the corpus to buy a taxable annuity.
Can government employees use this calculator?
Yes: choose 'Government employee', which sets the 40% minimum annuity, and enter your own plus the government's contribution as the monthly amount.
What is NPS Vatsalya?
An NPS account parents open for a child. It becomes a regular NPS account when the child turns 18. Enter the child's age to project it.