NPS Calculator — National Pension System
This NPS calculator projects your National Pension System Tier 1 corpus at age 60, based on your monthly contribution and expected return, then splits it the way NPS rules require: up to 60% as a tax-free lump sum, with a mandatory minimum of 40% used to buy an annuity that pays you a monthly pension for life. Enter your current age, monthly contribution and expected returns to see all three figures.
NPS Tier 1 accounts mature at age 60 — this calculator projects your corpus from your current age up to 60.
How much you contribute to your NPS Tier 1 account each month.
NPS returns depend on your chosen mix of equity, corporate bonds and government securities — equity-heavy allocations have historically returned more but carry more volatility.
The rate at which your mandatory annuity purchase pays out as a pension — this varies by insurer and product chosen at retirement.
Total corpus at 60
Log in to save₹92,22,370
The maximum share of your corpus you can withdraw tax-free as a lump sum at retirement.
From the mandatory 40% of your corpus used to buy an annuity — illustrative only, since real payout rates vary by insurer.
How to use this nps calculator
- 1Current age: NPS Tier 1 matures at 60, so this determines how many years your contributions have to grow.
- 2Monthly contribution: how much you invest into NPS Tier 1 each month — this can change over your career, but the calculator assumes a constant amount for simplicity.
- 3Expected annual return: NPS lets you choose an asset allocation across equity, corporate bonds and government securities (or use an auto-choice lifecycle fund) — a higher equity allocation has historically meant higher but more volatile expected returns.
- 4Expected annuity rate: the rate insurers pay when you convert the mandatory annuitized portion into a pension at retirement — this varies by insurer and product, so treat it as an estimate.
Understanding your results
Total corpus at 60 is your full projected NPS Tier 1 balance at maturity. Tax-free lump sum withdrawable is the maximum 60% of that corpus you're allowed to take out as cash, entirely tax-free. Estimated monthly pension is what the mandatory 40% annuitized portion is projected to pay you every month for life, once converted into an annuity at your chosen rate — this figure is illustrative, since real annuity payout rates depend on the specific insurer and product you pick at retirement.
The formula
Corpus = SIP future value of contributions; Lump sum = Corpus × 60%; Pension = (Corpus × 40% × Annuity rate) / 12The corpus is calculated as the future value of a monthly SIP compounding at your expected return, from your current age to 60. By NPS rule, at least 40% of the final corpus must be used to purchase an annuity (the mandatory pension component), and up to 60% can be withdrawn directly as a tax-free lump sum. The estimated monthly pension takes the 40% annuitized amount, applies your expected annuity rate to get an annual payout, then divides by 12 for a monthly figure.
A worked example
A 30-year-old contributing ₹5,000/month, expecting a 9% annual return over 30 years to age 60: the corpus works out to ₹92,22,370. Of that, ₹55,33,422 (60%) can be withdrawn tax-free as a lump sum, and ₹36,88,948 (40%) must be annuitized. At the default 6% annuity rate, that annuitized amount pays an estimated monthly pension of ₹18,445 for life.
Things to know
NPS Tier 1 is the primary retirement account this calculator models; a separate voluntary Tier 2 account also exists, which is more liquid (no lock-in) but doesn't carry the same tax benefits and isn't modeled here. Beyond the standard 80C deduction, NPS offers an additional ₹50,000 deduction under Section 80CCD(1B) — a key tax advantage over most other retirement instruments. Actual annuity payout rates at retirement vary by insurer and product, so the pension figure shown is illustrative, not a guarantee. Always verify current rules, contribution limits and tax provisions against official PFRDA/NPS Trust guidance.
Frequently asked questions
Can I withdraw my entire NPS corpus as a lump sum at retirement?+
No — by NPS rule, a minimum of 40% of your corpus must be used to purchase an annuity that pays you a regular pension. You can withdraw up to 60% as a tax-free lump sum, but the remaining 40% (or more, if you choose) is locked into an annuity product.
What's the difference between NPS Tier 1 and Tier 2?+
Tier 1 is the primary retirement account with a lock-in until 60 and the tax benefits (80C and the extra 80CCD(1B) deduction) — this is what the calculator models. Tier 2 is a voluntary add-on account with no lock-in and full liquidity, but it doesn't carry the same tax advantages, so it functions more like a regular investment account.
Is the estimated monthly pension guaranteed?+
No — the pension figure here is illustrative, based on the annuity rate you enter. Actual annuity payout rates depend on the specific insurance company and annuity product you select at retirement, and can vary meaningfully between providers, so treat this as a planning estimate rather than a guaranteed number.