NPS Calculator

Like a SIP: the monthly contribution is compounded monthly at the expected return until retirement age. The rate you enter is an assumption — NPS money is invested across equity, corporate debt and government bonds, and actual returns depend on your fund manager and asset mix.

On exit at 60 the rules require at least 40% of the corpus to buy an annuity from a PFRDA-empanelled insurer, which pays the monthly pension. The remaining 60% can be taken as a lump sum. You may put more than 40% into the annuity for a bigger pension.

Annuity corpus × annuity rate ÷ 12. A 6% rate is typical for a lifetime annuity without return of purchase price; options that return the purchase price to your nominee, or that increase each year, pay a lower rate. Get a live quote before relying on the figure.

Under the old regime, your own contribution qualifies under section 80CCD(1) within the ₹1,50,000 80C limit, plus an extra ₹50,000 under 80CCD(1B). An employer’s contribution is deductible under 80CCD(2) in both old and new regimes, which makes it one of the few deductions still available to new-regime taxpayers.

The 60% lump sum at retirement is tax-free. The annuity pension is taxed as income at your slab rate in the year received. Exiting before 60 is more restrictive: only 20% can be taken as a lump sum and 80% must buy an annuity.