What is a NPS Calculator?
The National Pension System is a market-linked, voluntary retirement scheme regulated by PFRDA. Unlike EPF or PPF, returns aren’t fixed — they depend on how your chosen mix of equity, corporate debt and government bonds performs. At retirement, at least 40% of the corpus must be used to buy an annuity (which pays your monthly pension for life), while the rest can be withdrawn as a lump sum, largely tax-free.
This calculator projects your accumulated corpus from monthly contributions, then splits it per the mandatory annuity rule to estimate your resulting monthly pension.
How the corpus and pension are estimated
The accumulation phase compounds your monthly contribution like a SIP. At retirement, the annuity portion of the corpus is assumed to be annuitised at the rate you enter — real annuity rates vary by provider and product, so treat this as an estimate.
Frequently asked questions
Is the NPS return guaranteed?
No — it’s market-linked, based on your chosen asset allocation between equity, corporate bonds and government securities. The rate you enter here is an assumption, not a guarantee.
How much of my NPS corpus can I withdraw as a lump sum?
Up to 60% at retirement, largely tax-free under current rules. The remaining 40% (minimum) must go into an annuity that pays you a monthly pension.
Is the monthly pension from NPS taxable?
Yes — the pension you receive from the annuity is taxed as regular income in the year you receive it, at your applicable slab rate.