NPS Calculator - National Pension System Planner

Project your NPS wealth accumulation, tax-free lumpsum, and estimated monthly pension.

Reviewed for Budget 2025 • Last updated 21 June 2026 • by Sandesh D.

NPS Parameters

Monthly Contribution₹5,000
Amount you invest every month until age 60
₹
Current Age30 Yrs
Expected Return10%
Annuity Purchase Share (%)40%
Percentage of corpus used to buy monthly pension (minimum 40%)
%
Expected Annuity Rate (% p.a.)6%
Expected interest rate paid on your annuity pension scheme
%

NPS Projections

Total Invested (16%)Gains Earned (84%)
Estimated Monthly Pension₹22,793
Total Corpus at Age 60₹1,13,96,627
Tax-Free Lumpsum Payout (60%)₹68,37,976
Reinvested Annuity Value (40%)₹45,58,651
80CCD(1B)Extra **₹50,000** deduction above 80C (Old Regime).
80CCD(2)Employer contributions are tax-deductible in both regimes.
Tax Saver Plus

Open NPS Account & Save Extra Tax

Invest in Tier-1 National Pension System (NPS) to claim an additional ₹50,000 tax deduction under Section 80CCD(1B). Zero commission account opening.

Invest in NPS Now→
Some links are affiliate links - see our disclosure.
In partnership with Groww

Calculation Methodology & Rules

The NPS Calculator estimates your accumulated retirement corpus at age 60 and calculates the corresponding lumpsum and monthly pension splits.

NPS Compounding & Annuity Logic

Monthly contributions compound over the accumulation period (from your current age to 60) using monthly compounding. At age 60, the corpus is split:

  • Annuitised Corpus (Min 40%): Invested in an annuity scheme to yield a regular monthly pension.
    Monthly Pension = (Annuitised Corpus × Expected Annuity Rate) / 12
  • Lumpsum (Max 60%): Paid out immediately as a 100% tax-free capital sum.

Dual Tax Advantages

NPS offers two powerful tax deductions under the Old Tax Regime:
1. **Section 80CCD(1B):** An additional ₹50,000 tax deduction, entirely separate from Section 80C.
2. **Section 80CCD(2):** Employer's contributions up to 10% of basic salary are deductible (this benefit is also available in the New Tax Regime). Optimize your complete tax strategy using our Section 80C Optimizer.

For detailed rules, formulas, references, and official guidelines, see the complete Ganakam Calculation Methodology.

Frequently Asked Questions

Under Section 80CCD(1B), individual taxpayers can claim an additional deduction of up to ₹50,000 for contributions made to the NPS Tier-1 account. This benefit is over and above the ₹1.5 Lakhs limit of Section 80C. Note that this deduction is only available under the Old Tax Regime.

At age 60, you can withdraw up to 60% of your accumulated NPS corpus as a tax-free lumpsum. The remaining 40% of the corpus must be mandatorily used to purchase an annuity plan from an approved life insurance provider. The annuity purchase is tax-free, but the monthly pension you receive from it is taxed as regular income under your tax slab.

Since NPS allows you to allocate money across Equity (E), Corporate Bonds (C), and Government Securities (G), returns are market-linked. Historically, portfolios with a balanced mix (e.g. 50% Equity) have delivered returns between 9% and 12% p.a. A long-term default assumption of 10% is realistic and conservative.

Yes. While the minimum required allocation to purchase an annuity is 40% of the corpus at age 60, you can choose to annuitise up to 100% of your corpus to secure a higher monthly pension, though this reduces your immediate tax-free lumpsum payout.