NPS Calculator
Project your National Pension System corpus at 60, the lump sum you can take, and the monthly pension the annuity portion might provide.
Researched by Mirza Seraj BaigFacts last checked against official sources on 7 September 2026Contributions are projected until age 60, the normal exit age.
NPS returns are market-linked and not guaranteed.
PFRDA requires a minimum of 40% at normal exit. You may choose more.
The rate the annuity provider offers at the time you buy. Typically quoted around 5–7%.
Projected corpus at age 60
₹92,22,370
≈ 92.22 lakh
- Invested
- 20%
- Gain
- 80%
- Years of contribution
- 30
- Total invested
- ₹18,00,000
- Investment gain
- ₹74,22,370
- Lump sum at exit
- ₹55,33,422
- Used to buy annuity
- ₹36,88,948
- Estimated monthly pension
- ₹18,445
This is a projection, not a guarantee. NPS returns are market-linked, and the annuity rate you actually get depends on what providers are offering when you turn 60. The lump sum is tax-exempt; annuity income is taxed as per your slab in the year you receive it.
What is NPS?
The National Pension System is a voluntary, market-linked retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). You contribute while you work, and the money is invested in funds whose returns are not guaranteed.
At normal exit at 60, at least 40% of the corpus must be used to buy an annuity, which pays the monthly pension, and up to 60% can be taken as a tax-exempt lump sum. If the whole corpus is ₹5 lakh or less, all of it can be withdrawn.
Aged 18–40 and never an income tax payer? The Atal Pension Yojana pays a government-guaranteed pension of ₹1,000 to ₹5,000 a month from 60, instead of a market-linked one.
Full side-by-side: NPS vs Atal Pension Yojana.
How is NPS calculated?
Monthly contributions are compounded to age 60 using FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where i is the monthly return and n the number of months. At normal exit, PFRDA requires a minimum of 40% of the corpus to buy an annuity, with up to 60% taken as a tax-exempt lump sum. Estimated monthly pension = annuity corpus × annuity rate ÷ 12.
NPS calculation example: ₹5,000 a month from age 30
Contribute ₹5,000 a month from 30 to 60: 360 contributions, ₹18,00,000 in all. At an assumed return of 9% a year, the corpus at 60 is ₹92,22,370.
Take the maximum 60% as a lump sum and you receive ₹55,33,422. The other 40%, ₹36,88,948, buys an annuity; at an assumed annuity rate of 6% that is a pension of about ₹18,445 a month.
Both 9% and 6% are assumptions for illustration. NPS returns depend on the funds you choose and on the market, and annuity rates are set by providers when you retire.
NPS at 60 by the age you start
₹5,000 a month, an assumed 9% return, and 40% of the corpus used for an annuity at an assumed 6%.
| Starting age | Years contributing | Corpus at 60 | Lump sum (60%) | Monthly pension |
|---|---|---|---|---|
| 25 | 35 | ₹1,48,19,239 | ₹88,91,544 | ₹29,638 |
| 30 | 30 | ₹92,22,370 | ₹55,33,422 | ₹18,445 |
| 35 | 25 | ₹56,47,652 | ₹33,88,591 | ₹11,295 |
| 40 | 20 | ₹33,64,480 | ₹20,18,688 | ₹6,729 |
| 45 | 15 | ₹19,06,219 | ₹11,43,731 | ₹3,812 |
| 50 | 10 | ₹9,74,828 | ₹5,84,897 | ₹1,950 |
Frequently asked questions
How much of my NPS corpus can I withdraw at 60?
At normal exit on turning 60, a minimum of 40% of the accumulated pension wealth must be used to buy an annuity, and the remaining 60% can be taken as a lump sum. If the corpus is ₹5 lakh or less, the entire amount can be withdrawn as a lump sum.
Is the NPS lump sum taxable?
The lump sum withdrawal of up to 60% of the corpus at exit is tax exempt, and the amount used to buy the annuity is also exempt. The annuity income you subsequently receive is taxed as per your slab in the year you receive it.
Can I use more than 40% for the annuity?
Yes. Forty per cent is the minimum, not a cap — you can choose to use more of your corpus to buy an annuity, which raises your monthly pension and reduces the lump sum.
Is the projected pension guaranteed?
No. NPS returns are market-linked, and the annuity rate depends on what providers are offering when you turn 60. Both the return and the annuity rate in this calculator are assumptions you enter, not guarantees.
How much pension will ₹5,000 a month in NPS give?
Starting at 30, with an assumed 9% return and 40% of the corpus in an annuity at an assumed 6%, about ₹18,445 a month, plus a lump sum of ₹55,33,422 at 60. Neither figure is guaranteed.
What is the difference between NPS and Atal Pension Yojana?
NPS is market-linked: your pension depends on the returns your contributions earn and on annuity rates at 60. Atal Pension Yojana guarantees a fixed pension of ₹1,000 to ₹5,000 a month from 60. APY is open only to Indian citizens aged 18 to 40, and since 1 October 2022 not to anyone who is or has been an income tax payer.