Savings

Link copied!

NPS Calculator

This free NPS calculator online projects your National Pension System corpus and expected annuity, kept current with India's December 2025 exit rules. Adjust any input below and your results update instantly.

Your details

Adjust the inputs below and your results update instantly.

Government employee

Uses the older flat 60% lump sum rule instead of the Dec 2025 tiers.

Current age (years)*

Your age today.

1859

e.g. 30 years old

Retirement / exit age (years)*

NPS normally matures at 60, but you can defer withdrawal (and keep contributing) up to age 75.

6075

e.g. 60 years old

Monthly contribution (₹)*

Your total NPS contribution each month; combine your own and any employer contribution here, since only the total matters for growing the corpus.

₹500₹1L

e.g. ₹5,000 a month

Expected annual return (%)*

NPS is market-linked, not a fixed government rate; returns depend on your chosen mix of equity, corporate debt, and government securities.

6%14%

e.g. 10% blended return

Existing NPS corpus (₹)*

≈ ₹1.00 L

Your NPS balance so far, if any.

₹0₹1Cr

e.g. ₹1,00,000 so far

Annuity rate (%)*

The rate the mandatory annuity portion of your corpus is assumed to earn once converted into a pension.

4%8%

e.g. 6.5% annuity rate

Pension payout period (years)*

How many years the monthly pension is spread over: a proxy for your expected years in retirement.

1030

e.g. 20 years

Your income tax slab rate (%)*

Only used if your lump sum withdrawal exceeds the 60% tax-free cap: the excess is taxed at this rate.

0%30%

e.g. 20%

These are example numbers. Edit any input on the left to see your own.

Your net lump sum at exit

₹1.01 Cr

80% lump sum tier

Total corpus

₹1.33 Cr

Monthly pension

₹19,812

₹1.06 Cr lump sum (₹5.31 L tax) + ₹26.57 L to annuity, paying ₹19,812/month.

Corpus vs. contributed

NPS corpusAmount contributed

Year-by-year breakdown

"% is growth" shows how much of that year’s corpus is investment growth rather than your own contributions.

YearNPS corpusAmount contributedStatus

1₹1.73 L₹1.60 L

1.1x contributed

8% is growth

6₹6.72 L₹4.60 L

1.5x contributed

32% is growth

11₹14.93 L₹7.60 L

2.0x contributed

49% is growth

16₹28.44 L₹10.60 L

2.7x contributed

63% is growth

21₹50.67 L₹13.60 L

3.7x contributed

73% is growth

26₹87.24 L₹16.60 L

5.3x contributed

81% is growth

30₹1.33 Cr₹19.00 L

7.0x contributed

86% is growth

Compare scenarios

See how the government-employee rule or working longer changes your net lump sum.

Your plan

80% lump sum tier

₹1.01 Cr

Net lump sum

Baseline

Government employee rule

Same corpus

₹79.72 L

Net lump sum

-₹21.26 L

Retire at 65

5 more years contributing

₹1.69 Cr

Net lump sum

+₹68.10 L

Worked example, using your numbers

A step-by-step walkthrough of how your inputs become your NPS outcome.

Step 1 · Corpus at exit

Compounding at 10%, your NPS corpus grows to

₹1.33 Cr

Step 2 · Lump sum vs. annuity

Based on 80% lump sum tier, your split is

₹1.06 Cr / ₹26.57 L

Step 3 · Net lump sum + pension

After any tax on the lump sum, and the annuity payout, you get

₹1.01 Cr + ₹19,812/mo

✓

Your NPS corpus of ₹1.33 Cr splits into a ₹1.01 Cr net lump sum and a ₹19,812/month pension.

Personalised insights

What your numbers reveal, and what changing them would do.

86% of your corpus is investment growth

₹19.00 L contributed (incl. existing corpus) grows to ₹1.33 Cr at 10%.

₹26.57 L of your lump sum is taxable

Your ₹1.06 Cr lump sum exceeds the 60% tax-free cap on your total corpus. That excess costs ₹5.31 L in tax at your slab rate.

Your monthly pension: ₹19,812

₹26.57 L goes toward a mandatory annuity, paying this out over 20 years at 6.5%.

Contributing 20% more adds ₹17.18 L net

Raising your monthly contribution to ₹6,000 changes your net lump sum to ₹1.18 Cr.

How this is calculated

Every step of the math behind your result, shown in the open.

Corpus accumulation

B_m = balance after month m, r_m = monthly return, P = monthly contribution

As a calculator for NPS, this compounds your contribution monthly at your expected return, the same growth math as a SIP, just inside an NPS account.

Example: ₹1.00 L existing + ₹5,000/mo compounding at 10% → ₹1.33 Cr at retirement

Lump sum ceiling, by corpus size

f = 100% up to ₹8L; ₹6L flat up to ₹12L; 80% above that (60% flat for government employees)

PFRDA's December 2025 rules set the lump sum ceiling as a function of your corpus size, not a single fixed percentage. Government employees follow a separate, simpler rule instead.

Example: ₹1.33 Cr corpus → 80% lump sum tier → ₹1.06 Cr lump sum, ₹26.57 L to annuity

The tax mismatch

Lump Sum = the amount actually withdrawn, Corpus = your total NPS corpus, Taxable Lump Sum = the part taxed at your slab rate

Section 10(12A) exempts 60% of the total corpus, not 60% of whatever you choose to withdraw; a lump sum above that cap is taxed on the difference.

Example: ₹1.06 Cr lump sum − ₹79.72 L tax-free cap → ₹26.57 L taxable

Assumptions

Contributions are assumed constant every month: no step-up, and no gap years.
The expected return is held constant across your full career, though real market-linked returns fluctuate year to year.
The mid-size corpus tier's "systematic withdrawal" option isn't modeled. This calculator treats the non-lump-sum portion as going entirely into an annuity.
Partial withdrawals before retirement aren't modeled. This projects an account with no withdrawals until exit.
Figures are indicative, not financial or tax advice.
Based on PFRDA's exit-rule tiers and Section 10(12A) tax treatment as they stand as of July 2026.

Understanding NPS

The concept, the motivation, and what to watch out for.

A market-linked pension account with rules that just changed

The NPS scheme grows through your own contributions invested across equity, corporate debt, and government securities, not a fixed government rate like PPF or EPF. What you actually get to keep at retirement depends on rules PFRDA overhauled in December 2025: how much you can withdraw as a lump sum now depends on your corpus size, and the tax-free portion doesn't always match the withdrawal limit.

This calculator projects your corpus, applies the current exit-rule tier your projected corpus falls into, and shows exactly how much is lump sum, how much is taxed, and what monthly pension the mandatory annuity portion buys.

Bigger corpus, bigger mandatory annuity

Small corpuses can be withdrawn entirely as a lump sum with no annuity at all. Cross ₹12 lakh, and at least 20% must go toward a monthly pension.

The tax-free cap didn't move with the withdrawal limit

Section 10(12A) still only exempts 60% of your total corpus. Any lump sum percentage above that is taxed at your slab rate. This actually bites hardest at the smallest corpuses: the ≤₹8 lakh tier's 100% lump sum leaves 40 percentage points taxable, twice the gap in the 80% tier for larger corpuses.

The annuity rate at exit is out of your control

The mandatory annuity portion buys a pension at whatever rate is available when you retire, often modest, currently around 6-7%. A lower-than-expected annuity rate can meaningfully shrink the monthly pension this number implies.

Did you know?

A few facts behind NPS and its December 2025 rule changes.

Dec 2025

The biggest NPS scheme overhaul in years

PFRDA raised the maximum lump sum from 60% to 80% of corpus for larger accounts, and introduced size-based tiers, all through a single notification on 12 December 2025 — the same rules this national pension scheme calculator applies automatically.

Mismatch

Small corpuses feel the tax mismatch most, not large ones

The Income Tax Act's 60% tax-exemption cap never moved, so the ≤₹8 lakh tier's 100% lump sum leaves 40 percentage points taxable, double the 20-point gap the 80% tier creates for bigger corpuses.

₹8L

Below this, there's no mandatory annuity at all

Corpuses at or below the tier-two ceiling can be withdrawn entirely as a lump sum. No pension purchase is required, unlike every larger tier.

60%

Government employees follow a separate, older rule

Regardless of corpus size, government employees can still take a flat 60% lump sum with 40% mandatory annuity; the December 2025 tiers don't apply to them.

Market-linked

Unlike PPF or EPF, there's no guaranteed NPS interest rate

NPS returns depend entirely on your chosen mix of equity, corporate debt, and government securities; there's no government-declared interest rate to fall back on, unlike the NPS scheme's fixed-rate cousins.

Frequently asked questions

Straight answers to the questions we hear most about NPS.

What is the NPS interest rate?

NPS doesn't have a fixed interest rate the way PPF or a bank FD does — it's market-linked, so "NPS interest rate" really means historical returns, which have run roughly 9-12% CAGR over the last decade depending on your chosen equity/debt mix. Whenever you see the NPS interest rate quoted as a single number, treat it as that historical average, not a guaranteed rate. Use the expected-return field above to model your own assumption within that range.

Is this NPS calculator India-specific, or a global projection?

India-specific. This NPS calculator India tool applies PFRDA's exact December 2025 exit-rule tiers and India's Section 10(12A) tax treatment — not a generic retirement projection borrowed from another country's pension system.

What makes this the best NPS calculator for the current rules?

It models PFRDA's actual December 2025 exit-rule tiers and the Section 10(12A) tax mismatch precisely, rather than the flat 60% lump sum rule many older calculators still assume applies to every corpus size.

How do I use this as an NPS calculator for government employees?

Add your own 10% and your government employer's 14% contribution together into the monthly contribution field above — only the combined total matters for corpus growth. The exit rules already account for the difference: government employees follow a separate flat 60% lump sum rule regardless of corpus size, which this calculator applies automatically once you select that option.

How much of my NPS corpus can I withdraw as a lump sum?

Under PFRDA's December 2025 rules: 100% if your corpus is ₹8 lakh or less, a flat ₹6 lakh if it's between that and ₹12 lakh, and up to 80% above ₹12 lakh; the rest must fund an annuity or systematic withdrawal. Government employees follow an older, separate rule: a flat 60%.

Is my entire lump sum withdrawal tax-free?

Not necessarily. Section 10(12A) only exempts 60% of your total corpus, regardless of how much PFRDA lets you withdraw as a lump sum; any percentage point above that is taxed at your slab rate. Counterintuitively, this hits smaller corpuses hardest: the ≤₹8 lakh tier's 100% lump sum leaves 40 percentage points taxable, versus just 20 for the 80% tier at larger corpus sizes.

What happens to the portion that isn't a lump sum?

It must go toward either a mandatory annuity (a monthly pension for life, purchased from an insurance provider) or, for the mid-size corpus tier, a systematic withdrawal spread over at least 6 years. This calculator models the annuity route.

Is the monthly pension from my annuity taxed?

Yes. Annuity/pension income is fully taxable as regular income in the year you receive it, unlike the lump sum's partial exemption.

Why did these rules change so recently?

PFRDA notified the Exits and Withdrawals (Amendment) Regulations on 12 December 2025, raising the lump sum ceiling from 60% to 80% for larger corpuses and adding size-based tiers. The Income Tax Act's 60% tax-exemption cap wasn't changed to match, creating the mismatch this calculator models; a future Budget could still revise it.

Is this tax advice?

No. This tool provides indicative estimates based on your inputs and the rules in force at the time. Consult a financial advisor or chartered accountant for your actual NPS exit planning.