Eternexa

NPS Calculator

Project your NPS corpus to 60 and what follows — lump sum, annuity, monthly pension, and the 60% tax-free line under the new 80/20 exit rules.

Your NPS

Step 1 of 2
₹10,000
30 → 60 (30 years)
Monthly pension from age 60
₹45,210

₹10,000 a month for 30 years at 10%

84%of the corpus is growth
Corpus at 60
₹2.26 Crore
Lump sum in hand
₹1.36 Crore
You contribute
₹36.00 Lakh
  • What you contribute
  • Growth earned
What it grows toWhat you investYr 0Yr 8Yr 15Yr 23Yr 30
NPS corpusYou contributed

From contributions to a pension

What you put in, what it grows to, and how the corpus is split at 60.

You contribute over 30 years
₹36,00,000
+ Growth earned
₹1,90,04,879at 10%
= Corpus at 60
₹2,26,04,879
Lump sum (60%)
₹1,35,62,928yours on day one
Annuity purchase (40%)
₹90,41,952pays ₹45,210/mo

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What is the NPS?

The National Pension System is India’s regulated, market-linked retirement account: you contribute through your working years, the money grows in a mix of equity and debt at some of the lowest fund costs in the world (fund charges are capped in basis points, not percent), and at 60 the corpus converts into a lump sum plus a monthly pension. It is open to any Indian aged 18–70 — salaried, self-employed, NRI — and regulated by the PFRDA.

Your money sits in Tier I (the locked, tax-advantaged retirement account this page models). Growth depends on your chosen split between equity (E), corporate bonds (C) and government securities (G) — young, equity-heavy allocations have historically earned more. The return slider is exactly that: an assumption, not a promise; 9–11% is the range long-term equity-tilted NPS funds have delivered.

What happens at 60 — the new 80/20 rules

PFRDA’s revised exit rules (notified December 2025) made retirement much more flexible for private-sector subscribers:

  • Corpus up to ₹8 lakh — withdraw 100%, no annuity needed.
  • Corpus of ₹8–12 lakh — take up to ₹6 lakh as lump sum and draw the rest as systematic withdrawals over 6+ years.
  • Corpus above ₹12 lakh — take up to 80% as lump sum; at least 20% must buy an annuity (was 40%).

The annuity is a pension contract with an insurer: hand over the annuity corpus, receive a fixed monthly payout for life. At a 6% annuity rate, every ₹10 lakh annuitised pays about ₹5,000 a month. Rates differ by variant — “with return of purchase price” (your heirs get the corpus back) pays less than without — so treat the calculator’s rate slider as a quote to shop against.

The tax catch nobody mentions

The regulator moved faster than the taxman: PFRDA allows an 80% lump sum, but Section 10(12A) of the Income-tax law still exempts only 60% of the corpus. Take the full 80% today and the extra 20% is taxable at your slab — on a ₹2 crore corpus that is ₹40 lakh of taxable income in one year. Until a Budget clarification closes the gap, the tax-optimal split remains lump sum ≤ 60% — which is why this calculator defaults to a 40% annuity and shows the taxable overflow in amber the moment you dip below it. The pension itself is always taxable as income, at whatever slab you land in after 60.

Why salaried savers still love it

Contributions punch above their weight on tax. Your own deposits get 80CCD(1) plus the famous extra ₹50,000 under 80CCD(1B) — old regime only. But the sleeper is 80CCD(2): an employer NPS contribution (up to 14% of Basic + DA) is deductible even in the new regime — one of the very few deductions that survived it. If your company offers NPS in the CTC structure, it is close to free money; see what it does to your take-home.

NPS or PPF or a plain SIP?

PPF is the guaranteed, sovereign, tax-free anchor — but its 7.1% is a ceiling, not a floor. A plain SIP in equity funds offers the same market growth as NPS with full liquidity — and no forced annuity — but no 80CCD sweeteners and no behavioural lock. NPS sits between: cheapest fund management in the country, equity upside, employer tax leverage, at the price of a lock-in till 60 and an annuity on part of the corpus. A common salaried recipe: employer NPS via 80CCD(2) + PPF for the guaranteed layer + SIPs for liquid growth.

Frequently asked questions

Can I withdraw my entire NPS corpus at 60?
Only if it is ₹8 lakh or less (100% lump sum, no annuity). Between ₹8–12 lakh you can take ₹6 lakh and draw the rest systematically over at least 6 years. Above ₹12 lakh, at least 20% must buy an annuity — the other 80% can be lump sum, though only 60% of the corpus is currently tax-free.
Is the 80% lump sum fully tax-free?
No — that is the catch in the December 2025 rule change. PFRDA permits withdrawing 80%, but the Income-tax Act still exempts only 60% of the corpus under Section 10(12A). The extra 20% is taxable at your slab unless a future Budget aligns the two. The annuity pension is always taxable as regular income.
What return should I assume?
NPS returns are market-linked, driven by your equity/corporate/government (E/C/G) mix. Equity-tilted portfolios have historically delivered around 9–11% over long periods; conservative G-heavy mixes track closer to 7–8%. Project with 9–10% and treat anything higher as optimism, not planning.
What is the 80CCD(2) employer benefit everyone talks about?
If your employer routes part of your CTC into your NPS (up to 14% of Basic + DA), that amount is deductible from your taxable salary even under the new tax regime — one of the few deductions the new regime kept. If your company offers it, it is usually worth opting in.
What happens to my NPS if I exit early or die before 60?
Premature exit (after 5 years) allows only 20% as lump sum — 80% must buy an annuity, a deliberately strict door. On death, the entire corpus goes to the nominee as a lump sum; the annuity requirement does not apply.

Related calculators

Retirement

Your real retirement number — expenses inflated to 60, the corpus that funds 25 years of them, and the SIP that builds it.

PPF

See your Public Provident Fund grow year by year at the government-notified rate — 15-year maturity, 5-year extensions, all of it tax-free.

Income Tax

Compare the old and new tax regimes side by side for FY 2026-27 and see exactly which one saves you more.

Figures last checked: , against PFRDA exit rules notified December 2025. They apply to FY 2026-27. Rates and limits change — verify anything you are about to act on against the official source.

Disclaimer: Eternexa is an independent app and is not affiliated with, endorsed by, or representing the Income Tax Department, the Government of India, or any government entity, and does not provide official government services. This calculator gives an estimate for general information only — it is not financial, investment or tax advice. Tax and finance figures follow FY 2026-27rules and are based on publicly available information from official sources such as incometax.gov.in and epfindia.gov.in. Always verify important numbers with the official source or a qualified professional before acting on them.