NPS Calculator · FY 2026-27

Build a retirement corpus
tax-efficiently.

Project your National Pension System corpus at retirement, with the 60/40 lump-sum/annuity split, monthly pension estimate, and Section 80CCD benefits.

Last updated: FY 2026-27 / AY 2027-28

Your NPS plan

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₹5,000
₹
10.0% p.a.
% p.a.
25 years
years
60 years
years
Quick scenarios
Retirement corpus ₹0

How NPS works

The National Pension System is a market-linked, government-supervised retirement scheme. Monthly contributions invest across Equity (E), Corporate Bonds (C), and Government Securities (G), with allocation tunable by age (lifecycle fund) or your choice (active mode).

At retirement

  • 60% of the corpus is withdrawn as a tax-free lump sum
  • 40% is mandatorily used to purchase an annuity (pension) from a PFRDA-empanelled insurer
  • The annuity provides a regular monthly/quarterly pension for life (typically ~6% per annum)

Returns expectations

  • Equity (E) - 10–14% over long horizons
  • Corporate Bonds (C) - 8–10%
  • Govt Securities (G) - 7–9%
  • Blended NPS portfolio typically returns 9–11% over 25+ years

NPS tax benefits (the big draw)

  • Section 80CCD(1) - your contribution up to 10% of salary qualifies for deduction within the overall 80C limit of ₹1.5L (old regime)
  • Section 80CCD(1B) - additional ₹50,000 exclusive deduction beyond 80C (old regime)
  • Section 80CCD(2) - employer's contribution up to 10% of (basic + DA) is fully deductible, on top of 80C (both regimes)
  • At maturity - 60% lump sum is tax-free; the 40% used for annuity is also tax-deferred (annuity income later taxed at slab rate)

Eligibility & flexibility

  • Open to Indian citizens aged 18–70
  • Minimum contribution: ₹500 per transaction, ₹1,000/year
  • Withdrawal can be deferred up to age 75
  • Partial withdrawal allowed for specific purposes (medical, education) after 3 years
Common questions

Frequently asked questions

What's the 60/40 split at retirement?

At retirement, NPS rules require that you withdraw up to 60% of the corpus as a tax-free lump sum, and use the remaining 40% to purchase an annuity from a PFRDA-empanelled insurer. The annuity pays you a monthly pension for life.

Is the annuity income tax-free?

No - annuity income received post-retirement is taxable at your slab rate. The 40% used to buy the annuity isn't taxed at purchase, but each monthly pension payment is. The 60% lump sum, however, is fully tax-free.

What's the 80CCD(1B) ₹50k benefit?

NPS subscribers get an extra ₹50,000 income-tax deduction under Section 80CCD(1B), on top of the ₹1.5L Section 80C limit. This is the most attractive part of NPS for high-income individuals in the old tax regime.

Can I withdraw before retirement?

Partial withdrawal of up to 25% of your own contributions is permitted after 3 years for specified reasons (medical emergency, higher education, home purchase). Premature exit before 60 forces ≥80% into annuity (only 20% lump sum); deferred withdrawal up to age 75 is allowed.

NPS vs PPF vs ELSS?

NPS gives equity exposure + extra ₹50k 80CCD(1B) deduction; PPF is fully sovereign and tax-free (EEE); ELSS is pure equity with 3-yr lock-in. A balanced retirement plan often uses all three.

What annuity rate should I assume?

This calculator assumes ~6% annuity rate, which is a common rate offered by NPS-empanelled insurers (LIC, HDFC Life, SBI Life, etc.) for "annuity for life" options. Actual rates vary by annuity type, age at purchase, and insurer.

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Disclaimer: NPS corpus shown is a projection - actual returns depend on your fund manager, asset-allocation choice, market performance, and PFRDA charges. Annuity income at retirement is taxed at your slab rate; rates vary by insurer and annuity type. Please consult a SEBI-registered advisor before subscribing.