Up to 60 percent of the corpus can be withdrawn tax-free at maturity. The annuity portion is taxed as income each year as you receive pension.

What return rate is realistic?

A balanced NPS portfolio has historically returned 9 to 11 percent. Aggressive equity allocations can sit higher; conservative ones lower.

Can I increase the annuity allocation?

Yes. 40 percent is the minimum, but you can allocate up to 100 percent if you want maximum monthly pension at the cost of liquidity.

How does NPS compare to EPF or PPF?

NPS offers higher equity exposure and an extra 50,000 tax deduction under Section 80CCD(1B). EPF and PPF are lower-return but with greater certainty.

NPS pension calculator

The National Pension System builds a retirement corpus through long-term contributions, with a mandatory annuity purchase at maturity. Use this calculator to project the corpus, lump-sum withdrawal, and monthly pension at age 60.

NPS pension calculator

Estimate your NPS corpus and monthly pension at retirement (40% annuity rule applied).

Current age

30 yrs

Retirement age

60 yrs

Monthly contribution (₹)

₹5,000

Expected return (% p.a.)

10%

Total corpus

₹1.14 Cr

at age 60

Lump sum (60%)

₹68.4 L

tax-free on withdrawal

Annuity corpus (40%)

₹45.6 L

Monthly pension

₹22,793

at 6% annuity rate

NPS corpus growth assumes compounding at the given rate. 40% of corpus must purchase an annuity as per PFRDA rules. Tax-free withdrawal limit is ₹7.5L for Tier-I.

How this is calculated

Inputs you provide: current age, monthly contribution, expected annual return, annuity rate, and percentage allocated to annuity.
Future value of the monthly contribution series is computed until age 60.
At maturity, the annuity portion (minimum 40 percent) is converted to monthly pension at the assumed annuity rate.
The remainder is treated as a tax-free lump sum.
Real returns depend on chosen scheme allocation across equity, corporate debt, and government bonds.

Common questions

How is NPS taxed?: Up to 60 percent of the corpus can be withdrawn tax-free at maturity. The annuity portion is taxed as income each year as you receive pension.
What return rate is realistic?: A balanced NPS portfolio has historically returned 9 to 11 percent. Aggressive equity allocations can sit higher; conservative ones lower.
Can I increase the annuity allocation?: Yes. 40 percent is the minimum, but you can allocate up to 100 percent if you want maximum monthly pension at the cost of liquidity.
How does NPS compare to EPF or PPF?: NPS offers higher equity exposure and an extra 50,000 tax deduction under Section 80CCD(1B). EPF and PPF are lower-return but with greater certainty.