NPSPlan

India NPS Calculator

Monthly contributions compounded until retirement — see your total corpus, annuity allocation, and lump sum withdrawal.

Monthly contribution

Rs.

Expected return (% p.a.)

Current age

Retirement age

Annuity purchase (%)

Total corpus

Rs. 1,13,96,627

At least 40% of the corpus must be used to purchase an annuity; the remaining 60% can be withdrawn as a tax-free lump sum.

Total contributions: Rs. 18,00,000
Interest earned: Rs. 95,96,627
Annuity investment: Rs. 45,58,651
Lump sum (tax-free): Rs. 68,37,976

What you entered

Monthly contribution: Rs. 5,000Expected return (% p.a.): 10%Current age: 30Retirement age: 60Annuity purchase (%): 40%

1
Years until retirement
60 − 30= 30 years
2
Monthly rate of return
10% ÷ 12= 0.8333%
3
Total contributions
Rs. 5,000.00 × 360 months= Rs. 18,00,000.00
4
Total corpus at retirement
Compound monthly for 360 months= Rs. 1,13,96,626.62
5
Interest earned
Rs. 1,13,96,626.62 − Rs. 18,00,000.00= Rs. 95,96,626.62
6
Annuity purchase (40% of corpus)
Rs. 1,13,96,626.62 × 40%= Rs. 45,58,650.65
7
Lump sum withdrawal
Rs. 1,13,96,626.62 − Rs. 45,58,650.65= Rs. 68,37,975.97

Result

Total corpus: Rs. 1,13,96,627

Contributing Rs. 5,000/month from age 30 to 60 at 10% return builds a corpus of Rs. 1,13,96,627. After purchasing an annuity with 40%, you receive a Rs. 68,37,976 lump sum.

NPS corpus at 60, by monthly contribution and starting age

Each cell is the corpus at retirement age 60 for someone starting at the age in the column heading, contributing the monthly amount shown and earning 10% a year.

Monthly contribution	Starting at 25	Starting at 30	Starting at 35	Starting at 40
Rs. 2,000	Rs. 76,56,553	Rs. 45,58,651	Rs. 26,75,781	Rs. 15,31,394
Rs. 5,000	Rs. 1,91,41,384	Rs. 1,13,96,627	Rs. 66,89,452	Rs. 38,28,485
Rs. 10,000	Rs. 3,82,82,767	Rs. 2,27,93,253	Rs. 1,33,78,903	Rs. 76,56,969
Rs. 15,000	Rs. 5,74,24,151	Rs. 3,41,89,880	Rs. 2,00,68,355	Rs. 1,14,85,454
Rs. 25,000	Rs. 9,57,06,918	Rs. 5,69,83,133	Rs. 3,34,47,259	Rs. 1,91,42,423

Read across any row and the cost of waiting is stark: Rs. 5,000 a month from 25 builds Rs. 1.91 crore, while the same amount from 40 builds Rs. 38 lakh - five times less for fifteen fewer years. Starting at 25 with Rs. 2,000 beats starting at 40 with Rs. 10,000. At retirement at least 40% of the corpus must buy an annuity and the rest can be withdrawn as a lump sum, with the annuity income taxable as it is received. NPS carries an extra Rs. 50,000 deduction under 80CCD(1B) beyond the 80C limit. The 10% assumption reflects a mixed equity and debt allocation; returns are market-linked and the equity share is capped by scheme rules.

Extra ₹50,000 deduction under 80CCD(1B)

NPS contributions get an additional ₹50,000 tax deduction under Section 80CCD(1B), over and above the ₹1.5 lakh limit of Section 80C — making it one of the few ways to get a total ₹2 lakh deduction from contributions alone.

At least 40% must buy an annuity

At retirement, a minimum of 40% of the corpus must be used to purchase an annuity (monthly pension) from an insurance company. The remaining 60% can be withdrawn as a tax-free lump sum — this split is fixed by regulation.

Frequently asked questions

How much pension will I get from NPS?

Depends on your corpus and annuity rate. A ₹1 crore corpus with 40% annuity (₹40 lakh) at 6% annuity rate gives ~₹20,000/month pension for life. The remaining ₹60 lakh is a tax-free lump sum. Contributing ₹5,000/month from age 30 at 10% return builds roughly ₹1.12 crore by 60.

NPS vs PPF — which is better?

NPS: market-linked returns (8–12% equity, 8–10% balanced), ₹50K extra tax deduction, but 40% locked in annuity and partial taxation. PPF: guaranteed 7.1%, fully EEE (no tax ever), no annuity requirement. For pure tax-free safety: PPF wins. For potentially higher returns and the extra ₹50K deduction: NPS wins.

What is the tax benefit of NPS?

Under old regime: ₹1.5 lakh under 80C + ₹50,000 under 80CCD(1B) = ₹2 lakh total deduction. Employer contribution up to 10% of salary is also deductible under 80CCD(2) — no cap. At maturity: 60% lump sum is tax-free. The 40% used for annuity is taxed as income when you receive the pension.