Project your National Pension System corpus and the monthly pension it can buy at retirement.
NPS rules require at least 40% of the corpus to buy an annuity.
Estimated monthly pension
₹45,587
from age 60, on a 40% annuity
The National Pension System (NPS) is a government-backed retirement scheme where your monthly contributions are invested across equity and debt and compound until you retire. At retirement you can withdraw part of the corpus as a tax-free lump sum, while the rest must buy an annuity that pays you a regular pension. This NPS calculator projects your corpus at 60, the lump sum you can take, and the monthly pension your annuity is likely to generate.
Your contributions grow like a monthly SIP. The calculator uses the future-value formula for a series of equal monthly investments:
FV = P × [((1 + i)^n − 1) / i] × (1 + i)
Where P is your monthly contribution, i is the monthly return (annual return ÷ 12), and n is the number of months until retirement. At retirement, at least 40% of the corpus buys an annuity and the balance can be withdrawn as a lump sum. Your monthly pension is estimated from the annuity corpus and the expected annuity rate.
NPS suits long horizons and pairs well with other retirement tools. Compare the outcome against a broader retirement calculator or a debt-only option like the PPF calculator to see how the mix affects your final corpus.
NPS is a voluntary, long-term retirement savings scheme regulated by PFRDA. You contribute regularly during your working years, the money is invested in a mix of equity and debt, and at retirement you receive a lump sum plus a lifelong pension funded by an annuity.
Under the old regime you can claim up to ₹1.5 lakh under Section 80CCD(1) within the overall 80C limit, plus an extra ₹50,000 under Section 80CCD(1B) that is exclusive to NPS. Employer contributions are additionally deductible under Section 80CCD(2). Benefits depend on your chosen tax regime.
Indian NPS rules require you to use at least 40% of your Tier 1 corpus to purchase an annuity, which guarantees a regular pension for life. The remaining 60% can be withdrawn as a lump sum, and that lump-sum portion is currently tax-free.
Tier 1 is the main retirement account with tax benefits and withdrawal restrictions until 60. Tier 2 is an optional, flexible savings account with no lock-in and no extra tax deduction for most subscribers. This calculator models a Tier 1 account.
No. The corpus depends on the return your investments actually earn, and the pension depends on annuity rates at the time you retire. The figures here are projections to help you plan, not a promise of future value.
Section 80CCD(1B) lets you claim an additional deduction of up to ₹50,000 for your own NPS Tier 1 contributions, over and above the ₹1.5 lakh combined ceiling of Section 80C. It is exclusive to NPS, so it is a common reason people add an NPS account on top of other tax-saving investments. The benefit applies under the old tax regime; confirm the current rules for your regime with PFRDA.
Only in limited ways. Tier 1 allows partial withdrawals after a few years of membership, capped at a share of your own contributions and permitted only for specified reasons such as higher education, marriage of children, buying a first home or serious illness. A full exit before 60 forces a larger portion of the corpus into an annuity, leaving a much smaller lump sum. Check the current partial-withdrawal limits and conditions with PFRDA before you plan around them.
A Tier 1 account needs a small minimum contribution each financial year to stay active, and the account is frozen if you miss it. Reactivating a frozen account usually means paying the missed minimums plus a small penalty. The amounts are modest, but the freeze stops fresh contributions and interrupts the compounding this calculator assumes, so set a standing instruction if you invest irregularly. Confirm the current minimums with PFRDA.
Active Choice lets you set your own split across equity, corporate bonds, government securities and alternative assets, subject to a cap on the equity share. Auto Choice moves you along a lifecycle path that starts equity-heavy and shifts into debt as you approach 60, in an aggressive, moderate or conservative flavour. Auto Choice suits people who do not want to rebalance; Active Choice gives more control, and your mix drives the return you enter above.
Go deeper: Retirement Hub - NPS, EPF, FIRE, pension planning, and more
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