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.

Since PFRDA amended the exit rules in December 2025, non-government subscribers (private-sector employees and all-citizen accounts) need to put only 20% of the corpus into an annuity on exit at 60, on superannuation, or after 15 years in NPS; up to 80% can be withdrawn as a lump sum or through systematic withdrawals. Central and state government employees still need at least 40%. You may always put more 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.

A withdrawal of up to 60% of the corpus at retirement is tax-free. Check the tax treatment of anything withdrawn above 60% under the newer rules before relying on it. The annuity pension is taxed as income at your slab rate in the year received. Exiting early is more restrictive: only 20% can be taken as a lump sum and 80% must buy an annuity.