NPS Calculator (India)
Estimate your National Pension System retirement corpus, the tax-free lump sum, the annuity portion and your expected monthly pension. Enter your age, monthly contribution and expected returns to see how your NPS savings grow.
At least 40% must be used to buy an annuity.
Frequently Asked Questions
What is the minimum annuity in NPS?
Under current rules you must use at least 40% of your accumulated NPS corpus to purchase an annuity (a regular pension) at retirement. You can choose to annuitise more, up to 100%, but 40% is the minimum.
When can I withdraw from NPS?
Normal exit is typically at age 60 (superannuation). At that point you can withdraw up to 60% as a lump sum and must use at least 40% to buy an annuity. Premature and partial withdrawals have their own conditions.
Is the NPS lump sum taxable?
Under current Indian tax rules the lump-sum withdrawal of up to 60% of the corpus at age 60 is tax-free. The annuity income you receive afterwards is taxed as per your income slab in the year you receive it.
Understanding the NPS Calculator (India)
The NPS Calculator estimates what India's National Pension System could build for your retirement. Enter your current age, planned retirement age, monthly contribution, and an expected annual return, and it projects your total corpus at retirement using monthly compounding. It then splits that corpus the way NPS rules require: at least 40% is set aside to buy an annuity that pays a regular pension, while the remaining portion (up to 60%) can be taken as a tax-free lump sum. Using your chosen annuity rate, it also estimates your monthly pension. All amounts are shown in Indian rupees, with a growth chart and an export bar so you can save or print your results.
How it works
Your monthly contributions are treated like an SIP and grown to retirement as a future value, compounding every month at your expected return. The number of contributions equals the months between your current and retirement age. At retirement the calculator computes the total corpus and subtracts your total invested amount to show the growth. It then applies your annuity percentage: that share becomes the annuity corpus, and the rest is the lump sum. The monthly pension is the annuity corpus multiplied by your expected annuity rate, divided by twelve. Inputs are validated gently — non-positive values, a retirement age below your current age, or an annuity share outside 40–100% prompt a friendly message instead of an error.
Worked example
Suppose you are 30, retire at 60, and invest ₹5,000 a month at a 10% expected annual return. Over 360 months your corpus grows to roughly ₹1.13 crore, against ₹18 lakh invested. Annuitising the minimum 40% sets aside about ₹45.2 lakh and leaves a tax-free lump sum near ₹67.8 lakh. At a 6% annuity rate, the ₹45.2 lakh annuity corpus pays an estimated monthly pension of about ₹22,600 for life.
Tips & common mistakes
- Under current rules you must annuitise at least 40% of the corpus; raising that share increases your pension but shrinks the tax-free lump sum.
- Starting earlier matters enormously — decades of monthly compounding do most of the heavy lifting, so even small contributions early beat large ones late.
- Treat the expected return as an estimate. NPS returns depend on your asset mix (equity, corporate bonds, government securities) and are not guaranteed.
- Annuity rates move with interest rates; check current rates from annuity providers before relying on the pension figure.
- The 60% lump sum is currently tax-free, but annuity income is taxed at your slab in the year you receive it — plan for that.
- Contributions to NPS may qualify for tax deductions under current rules, which can effectively lower your real cost of investing.
Sources & methodology
- • Pension Fund Regulatory and Development Authority (PFRDA) — NPS exit and withdrawal rules
- • NSDL / Protean NPS Trust — National Pension System scheme details
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Reviewed by the TopOpenTools editorial team · Last updated June 2026. These tools provide general estimates for educational purposes only and are not financial, tax, insurance, investment, or medical advice. Verify important decisions with a qualified professional.