NPS Calculator (National Pension System)

Estimate your accumulated retirement corpus, 60% tax-free lumpsum payout under Section 10(12A), and lifelong monthly pension under the National Pension System (NPS) governed by PFRDA.

Contributing ₹10,000/month to NPS for 30 years at 10% return builds an estimated retirement corpus of ₹2,27,93,253, yielding ₹1,36,75,952 in 100% tax-free lumpsum and ₹47,486/month in lifelong pension.

NPS Contribution & Timeline

Calculate accumulated retirement corpus, 60% tax-free lumpsum, and monthly pension.

Monthly Contribution

₹

Minimum statutory contribution is ₹500/month (₹1,000/year for Tier I).

Your Current Age

years

Planned Retirement Age

years

PFRDA default is 60, extendable up to 75.

Expected Return Rate (% p.a.)

Historical 10-year blended average: 10%–12%.

Annuity Allocation (%)

Statutory minimum at age 60 is 40%.

Expected Annuity Interest Rate (% p.a.)

Benchmark rate for Life Annuity with ROP from ASPs: 6.0%–6.5%.

Retirement Corpus30 Years Tenure

Total Accumulated Corpus

₹2,27,93,253

Invested: ₹36,00,000 | Interest: ₹1,91,93,253

Tax-Free Lumpsum (60%)

₹1,36,75,952

100% Tax-Free u/s 10(12A)

Monthly Pension

₹47,486

From 40% annuity

Annuity Corpus (40%)

₹91,17,301

Transferred to ASP

Annual 80CCD(1B) Tax Saved

₹15,600

At 30% tax bracket

PFRDA Rule Summary:

At age 60, your total corpus will be ₹2,27,93,253. You can withdraw ₹1,36,75,952 (60%) 100% tax-free under Section 10(12A), and allocate ₹91,17,301 (40%) into an annuity generating approx ₹47,486/month.

Total NPS Corpus

₹2,27,93,253

Monthly Pension: ₹47,486

Calculated in accordance with PFRDA exit regulations and Section 80CCD / Section 10(12A) of the Income Tax Act.

What it is:: An Indian National Pension System (NPS) Tier I corpus and pension planning engine.
What it calculates:: Total retirement corpus, 60% tax-free lumpsum payout, 40% mandatory annuity corpus, and expected monthly pension.

Key Assumptions

Normal retirement age is 60 years.
Minimum mandatory annuity allocation is 40% (unless corpus $le$ ₹5 Lakhs).
Lumpsum withdrawal up to 60% is 100% tax-free u/s 10(12A).

How it works

Monthly Compounding: Your contributions are allocated across Asset Classes E (Equity), C (Corporate Debt), G (Government Securities), and A (Alternative Assets) based on Auto or Active choice.

Exit at Age 60: At normal retirement (age 60), PFRDA mandates that up to 60% of the accumulated corpus can be withdrawn as a lump sum completely tax-free under Section 10(12A).

Mandatory Annuity: A minimum of 40% of the corpus must be utilized to purchase an immediate annuity from an IRDAI/PFRDA empaneled Annuity Service Provider (ASP) to generate a lifelong pension.

Small Corpus Exception: If your total accumulated corpus at retirement is ₹5,00,000 or less, you are legally permitted to withdraw 100% of the corpus as tax-free lumpsum without mandatory annuity.

Formula

FV = P × [((1 + r)^n - 1) / r] × (1 + r); Lumpsum (60%) = FV × 60%; Annuity Corpus (40%) = FV × 40%

P: = Monthly contribution amount
r: = Expected monthly return rate (Annual return ÷ 1200)
n: = Total months until retirement age (Tenure × 12)
Pension: = Monthly annuity payout = (Annuity Corpus × Annuity Rate) ÷ 12

Contributions up to ₹50,000 annually qualify for exclusive tax deduction under Section 80CCD(1B) of the Income Tax Act.

Example calculation

₹10,000/month in NPS from Age 30 to 60 @ 10% Return

Total Invested (30 Years): ₹36,00,000
Total Accumulated Corpus at 60: ₹2,27,93,253
60% Lumpsum (100% Tax-Free): ₹1,36,75,952
40% Annuity Corpus: ₹91,17,301
Guaranteed Monthly Pension: ₹47,486/mo
Annual 80CCD(1B) Tax Saving: ₹15,600

Frequently asked questions

Is the 60% lumpsum withdrawal from NPS taxable?

No. Under Section 10(12A) of the Income Tax Act, 1961, up to 60% of the total accumulated corpus withdrawn upon maturity or reaching age 60 is 100% exempt from income tax.

What is the additional tax deduction under Section 80CCD(1B)?

Section 80CCD(1B) provides an exclusive tax deduction of up to ₹50,000 per financial year for Tier I NPS contributions, over and above the ₹1,50,000 ceiling under Section 80C. For an individual in the 30% tax bracket, this saves ₹15,600 annually in taxes.

Can I withdraw my entire NPS corpus if it is less than ₹5 Lakhs?

Yes. PFRDA regulations stipulate that if your total accumulated corpus at age 60 is ₹5,00,000 or less, you are entitled to withdraw 100% of the corpus as a lump sum without any mandatory annuity requirement.

Are annuity pensions received from NPS taxable?

Yes. While the corpus used to purchase the annuity is not taxed, the periodic monthly or quarterly pension payouts received from the Annuity Service Provider are treated as regular income and taxed at your applicable slab rate.

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