NPS Calculator
Year by year
| Age | Put in that year | Total put in | Corpus |
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The 60/40 split is the whole point
At 60 you may take up to 60% as a tax-free lump sum, and at least 40% must buy an annuity — an insurance product that pays you a fixed amount every month for life. That is not a preference you can opt out of; NPS exists to produce a pension, and the rule is what makes it one.
You can put more than 40% into the annuity if you want a larger monthly income and a smaller lump sum. The slider above does exactly that, and the two figures move against each other.
The annuity rate matters more than people expect
The pension is simply the annuity amount multiplied by the annuity rate. A rate of 6% on ₹50 lakh is ₹25,000 a month; at 5% it is ₹20,833. That is a fifth of your income decided by a number you do not control, so ask the providers rather than assuming.
The type matters too. An annuity that returns the purchase price to your family after your death pays noticeably less each month than one that keeps it. Neither is wrong — they answer different questions.
What the lump sum is really for
It is tax free, which makes it the most efficient money you will ever receive. Clearing a home loan with it, or holding it against medical costs, is usually a better use than adding it to the annuity — which converts tax-free capital into taxable monthly income.
What this does not model
Fund management charges, the shift in asset mix as you age under the auto choice, partial withdrawals, and the tax you will pay on the pension itself. The figures here are before all of them.
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Frequently Asked Questions
Because NPS is built to pay a pension, not a lump sum. At 60 you may withdraw up to 60% tax free; at least 40% has to buy an annuity, which is what produces the monthly pension. The split is a rule, not a choice, and the calculator keeps it.
No. NPS invests in equity, corporate bonds and government securities according to the mix you choose, and the return varies every year. Whatever rate you type here is an assumption, not a promise — the fund can and does have bad years.
Ask the annuity providers, because it is their number and it changes. It also depends on which annuity you pick — one that returns the purchase price to your family pays less each month than one that does not. Nothing is filled in here as though it were fixed.
The lump sum you take at 60 is tax free up to the 60% limit. The monthly pension is treated as income and taxed at your slab in the year you receive it. That is worth allowing for, because the headline pension is a pre-tax figure.
Under the old regime, contributions count under section 80C within the ₹1.5 lakh ceiling, and an additional ₹50,000 is available under 80CCD(1B) on top of it. Employer contributions have their own treatment. The new regime removes most of this.
Early exit is allowed but the rules invert: only 20% may be taken as cash and at least 80% must buy an annuity. This calculator models the normal exit at 60.