NPS Calculator
NPS Calculator
Tier I corpus, lump-sum + pension projection10% is a conservative blended default. Historical 10-year NPS scheme averages: Equity ~14%, Corporate Bond ~8%, G-Sec ~8% – a 50/30/20 (E/C/G) mix has averaged ~11%. Adjust to match your asset allocation.
NPS Corpus at 60
₹1.14 Cr
+₹95.97 L returns over 30 years
Total Invested
₹18 L
Lump-sum allocation
₹91.17 L
Annuity Corpus
₹22.79 L
Monthly Pension
₹11,397
Year-by-year corpus projection · 30 years to age 60 · 10% expected return
Year | Age | Total Invested (₹) | Corpus Value (₹) |
|---|---|---|---|
2027 | 31 | 60,000 | 63,351 |
2028 | 32 | 1.2 Lakhs | 1.33 Lakhs |
2029 | 33 | 1.8 Lakhs | 2.11 Lakhs |
2030 | 34 | 2.4 Lakhs | 2.96 Lakhs |
2031 | 35 | 3 Lakhs | 3.9 Lakhs |
2032 | 36 | 3.6 Lakhs | 4.95 Lakhs |
2033 | 37 | 4.2 Lakhs | 6.1 Lakhs |
2034 | 38 | 4.8 Lakhs | 7.37 Lakhs |
2035 | 39 | 5.4 Lakhs | 8.78 Lakhs |
2036 | 40 | 6 Lakhs | 10.33 Lakhs |
2037 | 41 | 6.6 Lakhs | 12.04 Lakhs |
2038 | 42 | 7.2 Lakhs | 13.94 Lakhs |
2039 | 43 | 7.8 Lakhs | 16.03 Lakhs |
2040 | 44 | 8.4 Lakhs | 18.34 Lakhs |
2041 | 45 | 9 Lakhs | 20.9 Lakhs |
2042 | 46 | 9.6 Lakhs | 23.72 Lakhs |
2043 | 47 | 10.2 Lakhs | 26.83 Lakhs |
2044 | 48 | 10.8 Lakhs | 30.28 Lakhs |
2045 | 49 | 11.4 Lakhs | 34.08 Lakhs |
2046 | 50 | 12 Lakhs | 38.28 Lakhs |
2047 | 51 | 12.6 Lakhs | 42.93 Lakhs |
2048 | 52 | 13.2 Lakhs | 48.06 Lakhs |
2049 | 53 | 13.8 Lakhs | 53.72 Lakhs |
2050 | 54 | 14.4 Lakhs | 59.98 Lakhs |
2051 | 55 | 15 Lakhs | 66.89 Lakhs |
2052 | 56 | 15.6 Lakhs | 74.53 Lakhs |
2053 | 57 | 16.2 Lakhs | 82.97 Lakhs |
2054 | 58 | 16.8 Lakhs | 92.29 Lakhs |
2055 | 59 | 17.4 Lakhs | 1.03 Crores |
2056 | 60 | 18 Lakhs | 1.14 Crores |
How NPS works
The National Pension System (NPS) is a long-term, voluntary retirement-savings scheme regulated by PFRDA. This calculator models the PFRDA All Citizen Model at normal exit. At age 60 (or after the applicable vesting period), up to 80% of the corpus may be taken as a lump sum and at least 20% used to buy an annuity from a PFRDA-empanelled insurer. Government, corporate and legacy accounts can have different rules; check the current PFRDA guidance before acting.
The three tax breaks
NPS Tier I gets favourable tax treatment in three places, which together can save a high-bracket payer tens of thousands a year:
- §80CCC / §80C: contributions up to ₹1.5 lakh count toward the combined §80C limit (shared with PPF, ELSS, EPF, life insurance premium, etc.).
- §80CCD(1B): an additional ₹50,000 deduction is exclusive to NPS – over and above the §80C cap. This is the single best reason most salaried payers add NPS on top of PPF.
- §80CCD(2): employer NPS contributions (up to 10% of basic + DA, 14% for central government employees) are fully deductible – and this is one of the very few deductions still available in the new tax regime.
Asset allocation – Active vs Auto Choice
You choose the split between Equity (E), Corporate Bonds (C), and Government Securities (G):
- Active Choice: you set the mix manually, with a 75% equity cap until age 50 that gradually tapers after.
- Auto Choice (lifecycle fund): Aggressive (75% E), Moderate (50% E, default), or Conservative (25% E) – equity allocation reduces automatically as you age.
You can change allocation twice a financial year and switch your Pension Fund Manager (PFM) once a year.
Withdrawal rules
Pre-retirement liquidity is limited – by design:
- Partial withdrawal: after 3 years, up to 25% of your own contributions (not employer's), for specified reasons – child's higher education or marriage, home purchase or construction, serious illness, disability. Maximum 3 partial withdrawals over the account lifetime.
- Pre-60 exit: only 20% lump-sum allowed, 80% must buy annuity. If total corpus ≤ ₹2.5 lakh, the full corpus is withdrawn as lump-sum.
- Normal exit under the All Citizen Model: the standard 80/20 split. Corpus-based exceptions can permit different withdrawals, so this calculator is a planning illustration rather than an exit instruction.
- Account extension: contributions can continue up to age 70, then exit at 70 on the same terms.
What annuity rate to assume
Annuity rates aren't regulated and move with interest-rate cycles. PFRDA-empanelled providers (LIC, HDFC Life, SBI Life, ICICI Pru, Star Union Dai-ichi, IndiaFirst Life) currently quote roughly 6.0–6.5% on annuity-for-life-without-ROP for a 60-year-old. This calculator uses 6% as the default. Variants like joint-life-with-ROP pay less monthly but return the principal at death – pick the shape that fits your dependants' needs.
NPS vs PPF vs EPF – which slot does NPS fill?
PPF has a government-notified rate and a 15-year lock-in. EPF is linked to eligible employment and employer contributions. NPS is market-linked and its tax treatment, liquidity and annuity requirement differ by model. Compare these features against your own goals, cash-flow needs and applicable tax rules; this calculator does not recommend one product over another.
PFRDA All Citizen Model exit rules verified 2026-09-23. The small-savings rate window is verified 2026-09-23; annuity rates and scheme returns are market-linked and not guaranteed.
How we calculate
Corpus = future value of monthly contributions at your expected return; at exit ≥ 40% must buy an annuity- Monthly contributions compound at your assumed blended (equity + debt) return until age 60.
- At least 40% of the corpus is annuitised; up to 60% can be withdrawn tax-free.
- Returns are market-linked and not guaranteed; annuity rate is assumed.
PFRDA scheme rules; illustrative market-linked returns. · Method reviewed by Harsh Porwal.
FAQs
NPS is a long-term retirement savings scheme regulated by PFRDA. You contribute a fixed amount monthly or in lump sums into your NPS Tier I account. The money is invested across equity (E), corporate bonds (C), and government securities (G) per a mix you pick. For normal exit under the All Citizen Model, up to 80% may be taken as a lump sum and at least 20% used to purchase an annuity; government, corporate and legacy accounts can follow different rules and corpus-based exceptions apply.
It projects your NPS Tier I corpus at age 60 based on monthly contribution, expected return, and years to retirement. It then splits the corpus into a lump-sum portion and an annuity portion (you choose the percentage), and shows the monthly pension you could receive from the annuity at a default 6% annuity rate. The output is a planning estimate, not a guarantee – actual NPS returns are market-linked.
Historical Tier I 10-year average annualized returns (across PFMs): Equity (E) ~14%, Corporate Bond (C) ~8%, G-Secs (G) ~8%. A balanced 50/30/20 (E/C/G) mix has averaged ~11%. Most NPS calculators on the web default to 9–12%. The calculator pre-fills 10% as a conservative blended assumption. Adjust based on your asset-allocation choice and risk profile.
Tax treatment for NPS depends on the tax regime, employer type and applicable tax law. The calculator shows the common legacy deduction labels for planning, but you should confirm current eligibility and exit taxation in the Income Tax Department guidance or with a tax professional before filing or exiting.
NPS has strict withdrawal rules that vary by model and exit type. Under the All Citizen Model, PFRDA describes a normal-exit default of up to 80% lump sum and at least 20% annuity, with corpus-based alternatives; premature exit uses different limits. Check the current PFRDA rule for your specific model before withdrawing.
Tier I: minimum ₹500 per contribution and ₹1,000 per financial year to keep the account active; no upper limit on contributions (the deduction caps are separate). Tier II (a voluntary savings account with no lock-in): minimum ₹250 per contribution; no annual minimum and no upper limit. This calculator models Tier I – the regulated retirement account.
Yes. NPS lets you change asset allocation twice per financial year and change your pension fund manager (PFM) once per year. You can pick Active Choice (you set your own E/C/G mix, max 75% equity until age 50 with gradual taper) or Auto Choice (lifecycle fund – Aggressive 75%E, Moderate 50%E, or Conservative 25%E, all tapering equity as you age). New accounts default to Moderate Auto Choice.
Annuity rates are not regulated. They depend on the insurer, the annuity variant (annuity for life, with-return-of-purchase-price, joint-life, etc.), and prevailing interest rates. PFRDA-empanelled providers (LIC, HDFC Life, SBI Life, ICICI Pru, Star Union Dai-ichi, IndiaFirst Life) currently quote roughly 6.0–6.5% on annuity-for-life-without-ROP for a 60-year-old. This calculator uses 6% as the default – adjust as needed when planning your retirement income.
PPF, EPF and NPS have different rate-setting, withdrawal, employer-linkage and tax rules. PPF has a government-notified quarterly rate and a 15-year tenure; EPF is employment-linked with an annual declared rate; NPS is market-linked and has model-specific exit rules. Compare their current terms against your own objective rather than treating one as a universal replacement for another.
As early as possible. The power of compounding over 30-40 years is what makes NPS work – starting at 25 vs 35 (with the same monthly contribution and return) can roughly double the final corpus. Even a small monthly amount started early beats a larger amount started late. NPS accepts contributions from age 18.
No. NPS returns are entirely market-linked – your actual corpus will depend on the equity/debt mix you choose, market performance over your investment horizon, and the PFM's scheme returns. The annuity rate at retirement is also not guaranteed; rates move with the interest-rate cycle. Treat this calculator's output as a planning estimate, useful for goal sizing and contribution decisions – not as a forecast of your exact future amount.