india • INR

NPS Calculator India 2026

Plan retirement with this NPS Calculator India. Estimate total corpus, 60% tax-free lump sum, 40% annuity, monthly pension, and tax deductions under 80C, 80CCD(1B), and 80CCD(2).

Last revised 24 September 2026

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Personal & Contribution Details

Current Age (Years)

Your current age for retirement planning.

Retirement Age (Years)

Typically 60 years for NPS. Can be 45-70 for voluntary.

Monthly Contribution (₹)

Your personal contribution to NPS Tier 1.

Annual Step-Up Rate (%)

5-10% to align with salary growth.

Employer Contribution (₹/Year)

10% of salary for private, 14% for government (80CCD(2)).

Your Annual Basic Salary (₹)

Used to check the 80CCD(2) cap against your employer's contribution — leave blank to skip the check.

Employment Type

Government employees get a higher 80CCD(2) cap (14% of salary) under the old regime.

How this estimate was calculated

Corpus grows at an effective 10.0% a year for the aggressive allocation over 30 years, with contributions invested monthly. The return is an assumption, not a guarantee — actual NPS returns vary with the market.
At exit, 60% of the corpus is tax-free and this calculator assumes the other 40% buys an annuity. PFRDA allows up to 80% as a lump sum (minimum 20% annuity), but the part above 60% is taxable at your slab.
Partial withdrawal is capped at 25% of YOUR OWN contributions only — never employer contributions or investment growth — allowed after 3 years of subscription, up to 4 times in your NPS lifetime with a minimum 4-year gap between withdrawals, for specified purposes (children's education/marriage, medical treatment, buying/building a home, or starting a business). It is entirely tax-free. The figure shown is illustrative and calculated against your TOTAL projected career contributions — an actual early withdrawal would be smaller, since it can only draw on contributions made up to that point.

Financial Disclaimer: This calculator provides an estimate only, based on the age, contribution, fund allocation, and annuity assumptions you enter. NPS returns are subject to market performance and PFRDA rules, and actual annuity rates at retirement can differ from the rate assumed here. This calculator models the standard 60% tax-free lump sum / 40% annuity split; PFRDA rules (since December 2025) allow withdrawing up to 80% as a lump sum for corpuses over ₹12 lakh, but only the first 60% remains tax-exempt under Section 10(12A) — any lump sum taken between 60% and 80% is taxed at your slab rate. Consult a qualified financial adviser before making investment decisions. Full disclaimer.

Sources & methodology

Formula:: Standard year-by-year corpus accumulation under PFRDA's NPS structure, using indicative fund-allocation returns and the tax treatment under Sections 80CCD and 10(12A) of the Income Tax Act, 1961.
Reference:: Pension Fund Regulatory and Development Authority
Rates for:: 2026/27
Figures verified:: August 2026 — checked against the primary source above
Content last updated:: September 2026
Scheduled re-verification:: April 2027

Calculation type: Projection from your assumptions. Uses 2026 rates and thresholds. Figures are taken from Pension Fund Regulatory and Development Authority and NPS Trust / Protean (NPS Central Recordkeeping Agency) and Income Tax Department, Government of India and PFRDA / NPS Trust — see sources below.

Reviewed by Team GlobalCalqulate — Verifies each figure against the issuing authority's published source · Checked 9 August 2026

Your entries stay on this device. This calculator runs entirely in your browser — the figures you type are not sent to us or to anyone else. The page itself uses cookies for analytics and advertising, described in the privacy policy.

Formula & methodology

Formula used

Corpus_y = (Corpus_(y-1) + Contribution_y) × (1 + r_fund);  LumpSum = 0.6 × Corpus;  Pension = 0.4 × Corpus × r_annuity

Contributions are invested every month and the balance grows at the expected annual return (treated as an effective annual rate) for the selected fund allocation (Aggressive, Moderate, Conservative, or Government Securities). The personal contribution steps up annually by the entered step-up rate. At retirement, 60% of the final corpus is treated as a tax-free lump sum and 40% as the annuity corpus, which is converted to a pension using the entered annuity rate (adjusted down for Joint or Increasing annuity options).

Origin: Standard year-by-year corpus accumulation under PFRDA's NPS structure, using indicative fund-allocation returns and the tax treatment under Sections 80CCD and 10(12A) of the Income Tax Act, 1961.

Variable definitions

Symbol	Meaning	Unit
Corpus_y	Corpus at end of year y. Accumulated NPS Tier 1 balance after that year's contributions and returns.	currency
Contribution_y	Year y contribution. Personal contribution (stepped up annually) plus any employer contribution for year y.	currency
r_fund	Expected fund return. Illustrative annual return assumption for the selected fund allocation — not a guaranteed or historical rate.	percent
r_annuity	Annuity rate. The assumed rate at which the annuity corpus converts to annual pension income.	percent

Limitations

Models the standard 60% lump sum / 40% annuity split rather than the higher lump-sum percentages PFRDA now permits (up to 80% for larger corpuses) — see the withdrawal note above.
Fund returns are illustrative assumptions per allocation type, not guaranteed or historical NPS scheme returns, which vary by pension fund manager.
Tax savings are computed only for the Old Tax Regime; the New Tax Regime does not allow 80C/80CCD(1)/80CCD(1B) deductions (80CCD(2) employer contribution remains available in limited form).

This page is educational. It applies published rates and thresholds to the figures you enter and shows the arithmetic behind the result. It is an estimate, not a tax determination: your actual liability depends on circumstances this calculator does not collect, and only the relevant tax authority — or an accountant who can see your full position — can confirm what you owe.

Sources & references

PFRDA — NPS Exit and Withdrawal Regulations — Pension Fund Regulatory and Development Authority
National Pension System — Scheme Details — NPS Trust / Protean (NPS Central Recordkeeping Agency)
Income Tax Act, 1961 — Sections 80CCD(1), 80CCD(1B), 80CCD(2), 10(12A) — Income Tax Department, Government of India
Atal Pension Yojana — contribution chart — PFRDA / NPS Trust
Finance Act 2025 — rates of income-tax (as carried forward for FY 2026-27) — Income Tax Department, Government of India
Income Tax Act — Section 194A (interest other than interest on securities) — Income Tax Department, Government of India
Tax rates — TDS threshold limits and rates — Income Tax Department, Government of India

Help & FAQs

Frequently Asked Questions

Clear answers to common questions to help you use this calculator confidently.

What is NPS and how does it work?

Tap to view the answer

The National Pension System (NPS) is a retirement-focused, market-linked investment scheme regulated by PFRDA. You contribute during your working years into Tier 1, and at maturity (typically age 60), you can withdraw the corpus as a lump sum (up to 80% for corpuses over ₹12 lakh, per PFRDA rules since December 2025) with the remainder used to buy an annuity for monthly pension income.

What tax deductions does NPS offer?

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Your own contribution qualifies under Section 80C/80CCD(1) within the combined ₹1.5 lakh limit, with an additional ₹50,000 deduction available exclusively for NPS under Section 80CCD(1B). Employer contributions qualify separately under Section 80CCD(2), on top of these limits. These deductions apply only under the Old Tax Regime.

What is the difference between NPS Tier 1 and Tier 2?

Tap to view the answer

Tier 1 is the primary retirement account with withdrawal restrictions and tax benefits — it's what this calculator models. Tier 2 is a voluntary, flexible savings account with no lock-in and easier withdrawal, but it does not carry the same tax deductions as Tier 1.

Is NPS better than EPF or PPF?

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There's no universal winner. NPS offers market-linked growth potential and a structured pension at retirement, while EPF and PPF offer more predictable, government-backed returns. Many investors use EPF/PPF as a stability anchor and NPS for additional long-term growth and tax efficiency.

Is the entire NPS lump-sum withdrawal tax-free at retirement?

Tap to view the answer

Not necessarily. Section 10(12A) of the Income Tax Act exempts only the first 60% of your corpus from tax on withdrawal. PFRDA rules (since December 2025) allow withdrawing up to 80% as a lump sum for corpuses over ₹12 lakh, but any amount withdrawn between 60% and 80% is taxed at your income-tax slab rate — it is not automatically tax-free just because PFRDA permits the withdrawal.

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Sources & methodology

Formula:

Standard year-by-year corpus accumulation under PFRDA's NPS structure, using indicative fund-allocation returns and the tax treatment under Sections 80CCD and 10(12A) of the Income Tax Act, 1961.

Reference:

Pension Fund Regulatory and Development Authority

Rates for:

2026/27

Figures verified:

August 2026 — checked against the primary source above

Content last updated:

September 2026

Scheduled re-verification:

April 2027

How to Use This Calculator

Enter Personal Details

Input your current age, retirement age, and monthly contribution.

Add Employer Contribution

If your employer contributes to NPS, add the annual amount for tax benefits.

Select Fund Type

Aggressive (up to 75% equity — the PFRDA Active Choice cap) for growth, Conservative (25% equity) for safety.

Set Annuity & Tax Settings

Choose annuity option and toggle tax deductions (80C, 80CCD(1B), 80CCD(2)).

Review Results

See retirement corpus, lump sum, monthly pension, and tax savings.

Understanding Your Results

Retirement Corpus
The total amount accumulated in your NPS account at retirement, including contributions and returns.
Tax-Free Lump Sum
At retirement, 60% of the corpus can be withdrawn tax-free under current rules.
Monthly Pension
40% of the corpus is used to buy an annuity, providing a monthly pension for life.
80CCD(1B)
An additional ₹50,000 deduction solely for NPS contributions, over and above the ₹1.5L 80C limit.

Key Tips

✓
Max out your NPS contributions – ₹1.5L under 80C + ₹50,000 under 80CCD(1B) = ₹2L deductible annually.
✓
Start early – a ₹5,000/month NPS at age 30 with 5% step-up builds about ₹1.7 crores by age 60 (at a 10% projected return).
✓
Choose Aggressive fund (up to 75% equity) if you are under 40, then shift to Moderate/Conservative as you approach retirement.
✓
Employer NPS contribution (up to 10% of salary for private, 14% for government) is an additional tax benefit under 80CCD(2) – don't leave it on the table.
✓
At retirement, 60% of the corpus can be withdrawn tax-free; this calculator assumes the other 40% buys a pension annuity (PFRDA now requires only 20% for larger corpuses, but withdrawals above 60% are taxable).

Understanding National Pension System (NPS) in India

What is NPS?

National Pension System (NPS) is a retirement-focused, market-linked investment scheme regulated by PFRDA. You invest during your earning years, and at maturity around age 60, 60% can be withdrawn tax-free and the rest is used to buy an annuity for pension income (PFRDA now lets larger corpuses withdraw up to 80% as a lump sum, but the part above 60% is taxable).

NPS Tax Benefits – 80C, 80CCD(1B), and 80CCD(2)

Employee contribution qualifies under 80C/80CCD(1) within ₹1.5L limit. Additional ₹50,000 deduction is available under 80CCD(1B). Employer contribution under 80CCD(2) provides an extra tax-planning layer within salary-linked limits. Combined annual tax-free contribution can exceed ₹3L.

NPS Fund Options – Aggressive, Moderate, Conservative

Per PFRDA Active Choice: Aggressive (75% equity, 15% corporate bonds, 10% G-Sec) — highest growth, age <40. Moderate (50% equity, 30% corporate bonds, 20% G-Sec) — balanced, age 40-50. Conservative (25% equity, 45% corporate bonds, 30% G-Sec) — lower volatility, age >50. Government Securities (100% G-Sec) — safest. Auto choice also available with age-based lifecycle allocation.

Withdrawal at Retirement – Lump Sum vs Annuity

This calculator models the standard 60% tax-free lump sum / 40% mandatory annuity split. In practice, PFRDA rules (since December 2025) allow withdrawing up to 80% of the corpus as a lump sum for corpuses over ₹12 lakh, with at least 20% used to buy an annuity. However, Section 10(12A) of the Income Tax Act still exempts only the first 60% of the corpus from tax — any lump sum withdrawn between 60% and 80% is taxable at your slab rate. Annuity options include Individual (higher pension), Joint (spouse gets pension after you), or Increasing (pension grows annually), with rates varying by provider (typically 4-5.5%).

NPS vs EPF vs PPF

NPS offers market-linked growth and pension structure. EPF and PPF offer stability. Use EPF/PPF as safety anchors and NPS for long-term retirement growth plus tax efficiency. A balanced retirement plan uses all three.

Sources & References

NPS exit and withdrawal rules per PFRDA (pfrda.org.in). Scheme structure and Tier 1/Tier 2 details per NPS Trust / Protean (npscra.nsdl.co.in). Tax deduction sections (80CCD(1), 80CCD(1B), 80CCD(2)) and exemption under Section 10(12A) per the Income Tax Act, 1961 — incometax.gov.in.

Formula & methodology

Formula used

Corpus_y = (Corpus_(y-1) + Contribution_y) × (1 + r_fund);  LumpSum = 0.6 × Corpus;  Pension = 0.4 × Corpus × r_annuity

Variable definitions

Symbol	Meaning	Unit
Corpus_y	Corpus at end of year y. Accumulated NPS Tier 1 balance after that year's contributions and returns.	currency
Contribution_y	Year y contribution. Personal contribution (stepped up annually) plus any employer contribution for year y.	currency
r_fund	Expected fund return. Illustrative annual return assumption for the selected fund allocation — not a guaranteed or historical rate.	percent
r_annuity	Annuity rate. The assumed rate at which the annuity corpus converts to annual pension income.	percent

Limitations

Models the standard 60% lump sum / 40% annuity split rather than the higher lump-sum percentages PFRDA now permits (up to 80% for larger corpuses) — see the withdrawal note above.
Fund returns are illustrative assumptions per allocation type, not guaranteed or historical NPS scheme returns, which vary by pension fund manager.
Tax savings are computed only for the Old Tax Regime; the New Tax Regime does not allow 80C/80CCD(1)/80CCD(1B) deductions (80CCD(2) employer contribution remains available in limited form).

Calculator inputs

Personal & Contribution Details

Fund & Tax Settings8 options

Your results

Sources & methodology

Formula & methodology

Formula used

Variable definitions

Limitations

Sources & references

What is NPS and how does it work?

What tax deductions does NPS offer?

What is the difference between NPS Tier 1 and Tier 2?

Is NPS better than EPF or PPF?

Is the entire NPS lump-sum withdrawal tax-free at retirement?

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Calculator inputs

Personal & Contribution Details

Fund & Tax Settings8 options

Your results

Sources & methodology

How to Use This Calculator

NPS Example: ₹5,000/Month for 30 Years

Understanding Your Results

Key Tips

Understanding National Pension System (NPS) in India

What is NPS?

NPS Tax Benefits – 80C, 80CCD(1B), and 80CCD(2)

NPS Fund Options – Aggressive, Moderate, Conservative

Withdrawal at Retirement – Lump Sum vs Annuity

NPS vs EPF vs PPF

Sources & References

Formula & methodology

Formula used

Variable definitions

Limitations

Sources & references

How to Use This Calculator

NPS Example: ₹5,000/Month for 30 Years

Understanding Your Results

Key Tips

Understanding National Pension System (NPS) in India

What is NPS?

NPS Tax Benefits – 80C, 80CCD(1B), and 80CCD(2)

NPS Fund Options – Aggressive, Moderate, Conservative

Withdrawal at Retirement – Lump Sum vs Annuity

NPS vs EPF vs PPF

Sources & References