NPS Returns Calculator FY 2025-26 | Pension & Corpus Estimator

🏛️ Enter Your NPS Details

Your Current Age 30 years

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Retirement Age 60 years

🎯

NPS matures at 60 but can be continued up to age 75.

Monthly Contribution ₹5,000

₹

Amount you invest into NPS every month until retirement.

Return Assumptions

Expected Return Rate 10% p.a.

📈 % p.a.

Long-term NPS returns have historically ranged 9%–12% depending on your equity/debt mix.

Annuity Portion at Retirement 40%

🔁 %

Minimum 40% of the corpus must buy an annuity (pension). The rest (up to 60%) is a tax-free lump sum.

Expected Annuity Rate 6% p.a.

💵 % p.a.

The annual pension rate paid by the annuity provider on the annuity corpus.

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Enter your NPS details and click Calculate to see your retirement corpus and monthly pension.

The Maths

How the NPS Corpus is Calculated

Monthly Compounding Until Retirement

Your monthly NPS contributions grow with monthly compounding, just like a SIP. At retirement, the corpus is split between a lump sum and an annuity that pays your pension:

The NPS Corpus & Pension Formula

Corpus = P × [ (1 + i)ⁿ − 1 ] / i
where P = monthly contribution, i = monthly rate, n = months to retirement
Lump Sum = (100 − annuity%) × Corpus — tax-free
Monthly Pension = Annuity corpus × annuity rate ÷ 12

60%

Max tax-free lump sum

40%

Min annuity (pension)

₹50K

Extra 80CCD(1B) deduction

Max age to continue

Complete Guide

NPS — Tax Benefits & Withdrawal Rules

💡 Triple tax benefit: NPS offers deductions under 80CCD(1) (within the ₹1.5L 80C limit), an extra ₹50,000 under 80CCD(1B), and employer contributions under 80CCD(2). The 80CCD(1B) benefit is one of the few still allowed on the employee side.

1. Tax Deduction on Contributions

Section 80CCD(1): Your own contribution up to 10% of salary, within the overall ₹1.5 lakh 80C limit.
Section 80CCD(1B): An additional ₹50,000 deduction, over and above the ₹1.5 lakh — exclusive to NPS.
Section 80CCD(2): Employer's contribution (up to 14% of salary for government and, from the new regime, private employees) — this is allowed even under the New Tax Regime.

2. Withdrawal at Retirement (Age 60)

On maturity you can withdraw up to 60% of the corpus as a tax-free lump sum. The remaining minimum 40% must be used to buy an annuity, which pays you a regular monthly pension. If the total corpus is ₹5 lakh or less, you may withdraw 100% in one go.

3. Taxation of the Pension

The lump sum withdrawal (up to 60%) is fully tax-free. However, the monthly pension you receive from the annuity is taxable as income in the year of receipt, at your slab rate.

4. Partial Withdrawals

Before retirement, you can make partial withdrawals of up to 25% of your own contributions after 3 years, for specific needs like children's education, marriage, buying a house, or medical treatment.

Walkthrough Example

Step-by-Step Projection Example

Consider Meera, aged 30, planning her NPS until age 60:

Monthly contribution: ₹5,000
Investment period: 30 years (360 months)
Expected return: 10% per year
Annuity portion: 40% · Annuity rate: 6%

How the Projection Works:

Total invested: ₹5,000 × 360 = ₹18,00,000.
Corpus at 60: With 10% monthly compounding, the corpus grows to roughly ₹1.13 crore.
Lump sum (60%): about ₹67.8 lakh, withdrawn tax-free.
Annuity corpus (40%): about ₹45.2 lakh.
Monthly pension: ₹45.2 lakh × 6% ÷ 12 ≈ ₹22,600 per month.

Takeaway: A modest ₹5,000/month, started early, can build a crore-plus corpus and a comfortable lifelong pension — thanks to three decades of compounding.

FAQs

Frequently Asked Questions

How much tax can I save with NPS?+

Under the Old Regime, your NPS contribution qualifies for up to ₹1.5 lakh under Section 80CCD(1) (within the 80C limit) plus an additional ₹50,000 under Section 80CCD(1B). For a 30% taxpayer, that extra ₹50,000 alone saves ₹15,600 in tax (including cess) every year.

What returns does NPS give?+

NPS returns are market-linked and depend on your chosen asset mix (equity, corporate bonds, government securities). Historically, long-term NPS returns have ranged between about 9% and 12% per year. This calculator lets you test different assumed rates.

How much of the NPS corpus is tax-free at retirement?+

At age 60, you can withdraw up to 60% of your corpus as a completely tax-free lump sum. The remaining minimum 40% must be used to purchase an annuity, and the monthly pension from that annuity is taxable as per your income slab.

Is the monthly pension from NPS taxable?+

Yes. While the 60% lump sum is tax-free, the pension you receive from the annuity is added to your income and taxed at your applicable slab rate in the year you receive it.

Can I invest more than the minimum in NPS?+

Yes, there is no upper limit on how much you can contribute to NPS. However, the tax deductions are capped (₹1.5 lakh under 80CCD(1) + ₹50,000 under 80CCD(1B)). Contributions beyond that still grow your corpus but give no additional deduction.

Is this calculator's result guaranteed?+

No. NPS returns are market-linked and not guaranteed. This calculator gives a projection based on the assumed return and annuity rates you enter. Actual results will vary with market performance and the annuity plan you choose at retirement.

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