Investment & Retirement

    NPS Calculator

    Estimate your NPS (National Pension System) maturity corpus, annuity purchase and monthly pension at retirement.

    Inputs
    yrs
    yrs
    %
    %
    %
    Result
    Retirement Corpus
    ₹1,13,96,627
    • Total Invested₹18,00,000
    • Wealth Gained₹95,96,627
    • Lumpsum Withdrawal₹68,37,976
    • Annuity Purchase₹45,58,651
    • Monthly Pension₹22,793
    Visual Breakdown
    Step-by-step calculation
    1. Corpus at retirement (SIP formula) = ₹1,13,96,627
    2. 40% used to buy annuity = ₹45,58,651
    3. Monthly pension = Annuity × annuity rate / 12 = ₹22,793
    How this is calculated
    Corpus = SIP FV; Pension = (Corpus × Annuity%) × Annuity rate / 12
    Written by Taxpex CA Team
    Chartered Accountants (ICAI) · Reviewed by Taxpex Editorial Board
    Last updated 10 Nov 2025
    When to use this

    Is this the right calculator for you?

    • Retirement planning with an equity-tilted, low-cost, professionally managed product.
    • Extra ₹50k tax deduction under 80CCD(1B) beyond the ₹1.5 L 80C ceiling.
    • Corporate NPS — 10–14% employer contribution deductible with no cap (new regime).
    Overview

    Understanding the NPS

    National Pension System is a low-cost, market-linked retirement product regulated by PFRDA. Tier-1 has a lock-in till 60 (with limited early withdrawals) and offers Section 80CCD(1) (part of ₹1.5 L 80C), 80CCD(1B) (exclusive ₹50k) and 80CCD(2) (employer contribution — no cap in new regime up to 14% for government / 10% for private employees) deductions. Historical CAGR sits around 9–11% for aggressive equity-heavy allocations.

    At 60, up to 60% corpus is tax-free lumpsum, and the remaining 40% must buy an annuity (currently taxable at slab). This calculator projects the corpus based on monthly contribution, expected CAGR and years to 60, and estimates the lumpsum + annuity split.

    Worked examples

    Real-world scenarios, step-by-step

    ₹10,000/month for 30 years @ 10%

    Salaried employee starts NPS at 30 with 75% equity allocation.

    • Corpus at 60 ≈ ₹2.28 Cr
    • Tax-free lumpsum (60%) ≈ ₹1.37 Cr
    • Annuity corpus (40%) ≈ ₹91.2 L → monthly pension ~₹57 K @ 7.5%
    Corpus ≈ ₹2.28 Cr; pension ≈ ₹57 K/month.
    Rates & reference

    NPS tax deductions (FY 2025-26)

    SectionDeductionCapRegime
    80CCD(1)Self contributionWithin ₹1.5 L 80COld
    80CCD(1B)Additional self contribution₹50,000Old
    80CCD(2) — privateEmployer contribution10% of salaryBoth
    80CCD(2) — governmentEmployer contribution14% of salaryBoth
    Pro tips

    Common mistakes to avoid

    Choosing Tier-2 for tax savings — no 80C benefit on Tier-2.

    Auto-choice with default life-cycle fund when equity horizon justifies aggressive.

    Ignoring 80CCD(1B) ₹50k — most under-utilised tax deduction in India.

    Need a CA to review your numbers? Book a free consult — we'll double-check within 24 hours.

    CA insights

    Expert tips from senior CAs

    • Use 80CCD(1B) ₹50k in addition to 80C — biggest tax saver most salaried miss.

    • Corporate NPS (80CCD(2)) works in the new regime — negotiate this in your CTC.

    • Choose active allocation Scheme E >50% if 15+ years to retirement.

    Frequently asked questions

    Is NPS lumpsum tax-free?+

    Yes — up to 60% withdrawal at maturity is tax-free. The remaining 40% must buy an annuity; pension income is then taxed at slab.

    What is the minimum annuity purchase?+

    At least 40% of the corpus must be used to buy an annuity from an IRDAI-approved insurer.

    Do I get an extra tax deduction?+

    Yes — ₹50,000 additional deduction under Section 80CCD(1B), over and above ₹1.5L in 80C.

    Keep exploring

    Explore topics

    People also ask

    Is NPS lumpsum tax-free?+

    Yes — up to 60% withdrawal at maturity is tax-free. The remaining 40% must buy an annuity; pension income is then taxed at slab.

    via NPS Calculator
    Are 80C/80D deductions available in the new regime?+

    Most Chapter VI-A deductions (80C, 80D, 80E, HRA, LTA) are NOT available in the new regime. Only NPS employer contribution and standard deduction survive.

    via Income Tax Calculator FY 2025-26
    Does the calculator include the annual bonus?+

    The bonus / variable pay is shown separately since it is typically paid annually, not monthly.

    via In-Hand Salary Calculator
    Term or endowment insurance?+

    For pure risk cover, always term insurance. Endowment/ULIPs mix insurance with investment and typically deliver poor returns on both.

    via Life Insurance Calculator

    Cite this page

    This dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.

    Citation (APA)
    Taxpex Consultancy. (2026). NPS Calculator — Taxpex. Retrieved from https://taxpex.com/tools/investment/nps-calculator
    HTML link
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