NPS Calculator
Estimate your NPS retirement corpus, lump sum and annuity under the Dec 2025 exit rules. Old-regime taxpayers get an additional ₹50,000 deduction under section 124(3) (old 80CCD(1B)).
Minimum 20% (non-govt) or 40% (govt); lower values are raised to the minimum
Your NPS corpus at retirement
- Lump Sum
- Up to 80% (60% of corpus tax-free)
- Annuity
- Buys a pension; the pension is taxable
- Tax saved (old regime)
- Over all years, incl. cess
Where your retirement corpus comes from
is returns, not money you put in
- Each ₹1 you put in grows to
Non-government subscribers: minimum 20% annuity, up to 80% lump sum. Only 60% of the corpus is tax-free.
Exit rules per PFRDA amendments of Dec 2025. Tax saving uses the section 124(3) (old 80CCD(1B)) limit of ₹50,000/year plus 4% cess, available only in the old regime. The expected return is treated as an annual rate. Results are indicative only.
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What is an NPS Calculator?
An NPS (National Pension System) calculator projects your retirement corpus based on monthly contributions, expected returns, and tenure. At exit, non-government subscribers (All Citizen and Corporate models) must use at least 20% of the corpus to buy an annuity (monthly pension) and can withdraw up to 80% as a lump sum; only 60% of the corpus is tax-free, so any lump sum above that is taxed at your slab. Government subscribers still follow a 40% annuity / 60% lump sum split. Small corpora have extra options: a corpus up to ₹8 lakh can be withdrawn fully, and one of ₹8–12 lakh allows a ₹6 lakh lump sum with the rest paid out gradually or as an annuity. This makes NPS a hybrid product with both pension and wealth-creation components.
On tax, NPS gives you up to ₹1.5 lakh within the section 123 limit (old 80CCD(1), within 80C) plus an additional exclusive ₹50,000 under section 124(3) (old 80CCD(1B)), both in the old regime only. An employer contribution under section 124(1)/(2) (old 80CCD(2)) is deductible in both regimes: up to 14% of salary in the new regime, 10% in the old regime for private employers. The calculator shows this tax saving alongside your projected corpus.
Worked example: ₹5,000 a month in NPS for 20 years
This illustrative example uses the calculator's default inputs: ₹5,000 a month, raised 5% every year, a 10% annual return, 20 years to retirement, the 30% old-regime slab, a non-government subscriber and a 20% annuity share. You put in about ₹19.8 lakh and retire with about ₹51.5 lakh.
| Result | Amount |
|---|---|
| Total invested | ₹19,83,957 |
| Retirement corpus | ₹51,50,010 |
| Lump sum (80%) | ₹41,20,008 |
| Annuity (20%) | ₹10,30,002 |
| Tax saved (s.124(3), incl. cess) | ₹3,12,000 |
Of the ₹41.2 lakh lump sum, ₹30.9 lakh (60% of the corpus) is tax-free and ₹10.3 lakh is taxed at your slab. Raising the annuity share to 40% keeps the whole lump sum tax-free, but the extra annuity buys a pension that is taxed every year instead. The ₹3.12 lakh tax saving needs the old regime in all 20 years; pick the new regime and it drops to zero.
How to Use This NPS Calculator
- 1
Enter your years to retirement
Under the All Citizen model, normal exit is after 15 years or at age 60, whichever is earlier, and you can stay invested up to age 85. Starting earlier gives each contribution more years to compound.
- 2
Set your monthly contribution
To utilise the full section 124(3) (old 80CCD(1B)) benefit in the old regime, invest at least ₹50,000/year (≈₹4,167/month). Any amount above this still grows tax-deferred inside NPS.
- 3
Set your tax bracket and expected return
Returns depend on your asset mix: active choice in the common scheme allows up to 75% equity, and Multiple Scheme Framework high-risk schemes (from Oct 2025) allow up to 100% equity for non-government subscribers. Use a conservative estimate; past returns do not guarantee future ones.
- 4
Review lump sum, annuity, and tax savings
Pick your subscriber type and annuity share. Results show your total corpus, the lump sum (split into tax-free and taxable parts), the annuity corpus, and cumulative tax saved over the contribution tenure.
NPS vs PPF: Key Differences
| Feature | NPS | PPF |
|---|---|---|
| Returns | Market-linked (8–12%) | 7.1% (Oct–Dec 2026; revised quarterly) |
| Tax on Withdrawal | Up to 80% lump sum (60% of corpus tax-free); min 20% annuity; pension taxable | 100% tax-free |
| Extra deduction beyond section 123 (old 80C) | Yes: ₹50,000 via section 124(3) (old 80CCD(1B)), old regime | No extra beyond ₹1.5L |
| Lock-in | 15 years or age 60, whichever is earlier (All Citizen) | 15 years |
