The National Pension System is a voluntary, market-linked retirement scheme regulated by PFRDA. You contribute during your working years, the corpus is invested across equity and debt, and at 60 you receive a lump sum plus a monthly pension.

How much pension will I get from NPS?

At 60, at least 40% of your corpus must be used to buy an annuity, which pays a regular pension. The pension depends on the annuity corpus and the prevailing annuity rate, usually around 6%.

What are the tax benefits of NPS?

NPS contributions qualify for deduction under Section 80CCD(1) within the 80C limit, plus an exclusive extra Rs 50,000 under Section 80CCD(1B). At 60, the lump sum withdrawal is tax-free; the pension is taxed as income.

Is NPS better than EPF?

NPS has higher return potential because of its equity exposure, while EPF gives a fixed, guaranteed rate. Many people use both. NPS suits those comfortable with some market risk for a larger retirement corpus.

NPS Calculator

Estimate your National Pension System corpus, tax-free lump sum and monthly pension at retirement. Enter your contribution, age and expected returns.

Monthly Contribution

₹

₹500₹2,00,000

Ten Thousand Rupees

Current Age

yrs

18 yrs59 yrs

NPS contributions continue until age 60.

Expected Return on Corpus

5%15%

NPS is market-linked. A balanced mix of equity and debt has historically returned 9-11%.

Annuity Portion at 60

40%100%

At least 40% of the corpus must be used to buy an annuity. The rest can be withdrawn tax-free.

Expected Annuity Rate

4%9%

Total Invested

₹36.00 L

Corpus at 60

₹2.28 Cr

Lump Sum (Tax-Free)

₹1.37 Cr

Annuity Corpus

₹91.17 L

Monthly Pension

₹45,587

Taxable as income

Corpus Split at Age 60

NPS returns are market-linked and not guaranteed. At 60, at least 40% of the corpus must buy an annuity; the pension from it is taxable. The lump sum withdrawal is tax-free. NPS also offers an extra Rs 50,000 deduction under Section 80CCD(1B).

What is the National Pension System?

The National Pension System (NPS) is a voluntary, market-linked retirement scheme regulated by PFRDA. Unlike EPF (which earns a declared rate), NPS invests your contributions across equity (E), corporate debt (C) and government bonds (G), giving you market-linked returns. At retirement (age 60), you can withdraw up to 60% of the corpus tax-free as a lump sum, and the remaining 40% must be used to buy an annuity that pays a monthly pension. NPS also offers an extra ₹50,000 tax deduction under Section 80CCD(1B) over and above 80C.

How to use the NPS Calculator

Enter your current age and monthly contribution. Start as early as 18; common contribution ranges from ₹1,000 to ₹15,000/month.
Set the expected return. Equity-heavy NPS typically delivers 9-11% over long periods; balanced funds 8-9%.
Choose the lump sum vs annuity split. Default 60% lump sum (tax-free) and 40% annuity (mandatory).
Enter expected annuity rate. Annuity rates in India are around 6-7% in 2026.
Review the corpus, lump sum and pension. See the total NPS corpus at 60, your tax-free lump sum and your monthly pension.

Why NPS works for retirement planning

Extra ₹50,000 tax deduction under 80CCD(1B). On top of the 80C limit.
Market-linked returns. Historical NPS returns have beaten EPF for long-tenure investors.
60% tax-free withdrawal at 60. The lump sum portion is fully exempt.
Low cost. NPS expense ratios are among the lowest in any retirement product.
Choice of fund managers and asset mix. You can choose how aggressive or conservative to be.

NPS Calculator

Corpus Split at Age 60

What is the National Pension System?

How to use the NPS Calculator

Why NPS works for retirement planning

Related guides and calculators

Frequently Asked Questions

Explore more calculators