NPS Calculator
See your corpus at 60 — the 60% tax-free lump sum, the 40% annuitised, and the lifelong monthly pension it buys.
Plan your NPS
Invests for 30 years until age 60.
Market-linked; depends on your equity/debt mix.
Raise your monthly contribution by this % every year, e.g. with your salary.
Asset allocation
Equity tapers down with age automatically.
NPS requires at least 40% to be annuitised.
The pension rate the annuity provider offers — varies by plan.
Results update live — calculations run in your browser, no signup.
₹1.14 Cr
In 30 years your money grows 6.33× the ₹18.00 L you contribute
Market-linked projection at a constant 10.0% return. Returns and the annuity rate are not guaranteed; pension income is taxable.
Every rupee of the corpus is either money you contributed or market growth compounding on top of it.
Contribution vs growth
84% of your corpus is market growth — only 16% is the money you put in.
Your money doubles every
7.3 years
at 10.0% a year (Rule of 72 ≈ 7.2 yrs). The earliest rupees get the most doublings — which is why starting earlier matters so much.
Corpus over time
Year 8
₹7.37L
Year 15
₹20.90L
Year 23
₹53.72L
Year 30
₹1.14Cr
At 60, up to 60% is a tax-free lump sum; at least 40% must buy a lifelong annuity. Pension income is taxable.
The withdrawal rule at 60
Tax-free lump sum (60%)
₹68.38 L
in hand, tax-free
Annuitised (40%)
₹45.59 L
buys the pension at 6.0%
Monthly pension for life
₹22,793
Retirement income estimator
Your annuity corpus × annuity rate ÷ 12 = lifelong monthly pension.
Pension is taxable as income; the actual annuity rate depends on the plan.
Tax benefits (Section 80CCD)
- 80CCD(1B)
extra NPS-only deduction+₹50,000 - 80CCD(1)
within ₹1.5L 80C limitup to 10% of salary - Total deduction
old regime, combinedup to ₹2,00,000
At a 30% marginal rate, the ₹50,000 80CCD(1B) deduction alone saves about ₹15,000/year — roughly ₹4.50 L over 30 years. Mainly applies under the old tax regime.
Corpus at retirement
Same ₹5,000/month for 30 years, at different return assumptions.
| Return | Corpus at 60 | Monthly pension |
|---|---|---|
| 8% | ₹75.01 L | ₹15,003 |
| 10% | ₹1.14 Cr | ₹22,793 |
| 12% | ₹1.76 Cr | ₹35,299 |
| 14% | ₹2.78 Cr | ₹55,571 |
| 16% | ₹4.44 Cr | ₹88,705 |
Highlighted row matches your return. Returns are market-linked assumptions, not guarantees.
Step-up impact
Raising your contribution each year — the same ₹5,000/month start at 10.0% for 30 years.
| Step-up | Total invested | Corpus at 60 |
|---|---|---|
| 0% (flat) | ₹18.00 L | ₹1.14 Cr |
| 5%/yr | ₹39.86 L | ₹1.80 Cr |
| 10%/yr | ₹98.70 L | ₹3.21 Cr |
| 15%/yr | ₹2.61 Cr | ₹6.49 Cr |
A small annual step-up compounds into a much larger corpus for a modest change today.
NPS vs other retirement investments
Illustrative long-term return ranges and current rules — not live quotes or guarantees.
| Vehicle | Typical return | Tax benefit | Lock-in |
|---|---|---|---|
| NPS | 8–10%market-linked | ₹2L (80C + 80CCD(1B)) | Till age 60 |
| PPF | 7.1% | ₹1.5L (80C) | 15 years |
| EPF | 8.25% | ₹1.5L (80C) | Till retirement |
| Equity MF | 11–14%market-linked | ELSS: ₹1.5L (80C) | Open / 3y ELSS |
NPS is the only one of these with the extra ₹50,000 80CCD(1B) deduction, but it has the longest lock-in and a mandatory annuity at exit.
What-if scenario simulator
Try a higher contribution, a later start, or a higher return — and see the corpus and pension difference vs your current plan.
Invests for 30 years to age 60.
Your plan
₹1.14 Cr
₹22,793/mo pension
What-if
₹3.53 Cr
₹70,598/mo pension
+₹2.39 Cr
bigger corpus · +₹47,805/mo pension
- 84% of your corpus is market growth — money you never contributed.
- Your money doubles about every 7.3 years at this return.
- Annuitising 40% buys a ₹22,793/mo pension for life.
What this means
Contributing ₹5,000/month from age 30 for 30 years at 10.0% builds a ₹1.14 Cr corpus, of which ₹95.97 L is market growth. At 60 you take ₹68.38 L tax-free and annuitise ₹45.59 L into a ₹22,793/month pension for life.
Key takeaways
- You contribute: ₹18,00,000
- Market growth: ₹95.97 L (6.33× your money)
- Corpus at 60: ₹1.14 Cr
- Tax-free lump sum (60%): ₹68.38 L
- Monthly pension: ₹22,793 at 6.0%
Asset allocation
autoAuto choice tapers equity down as you age, lowering risk near retirement.
Start investing in mutual funds
Open a free account with ICICI Prudential AMC and start an SIP online. ICICI Prudential Mutual Fund, at no extra cost to you.
Your plan: ₹5,000/month from age 30 → about ₹1.14 Cr at 60, ₹22,793/mo pension.
Plan the rest of your money life
Put this pension in context — provident funds, tax-free PPF, or the corpus you'll actually need.
NPS Tier I is market-linked, so this is a projection at a constant assumed return, not a guarantee. At least 40% of the corpus must buy an annuity; up to 60% is a tax-free lump sum. Pension income is taxable, and the actual annuity rate depends on the plan and prevailing rates at exit.
How the NPS corpus and pension are calculated
Corpus = P × [ ((1 + i)ⁿ − 1) ÷ i ] × (1 + i) → Pension = (Corpus × a) × r꜀ ÷ 12
- P
- monthly contribution
- i
- monthly return = annual return ÷ 12 ÷ 100
- n
- number of months = years to 60 × 12
- a
- annuitised share of the corpus (≥ 40%)
- r꜀
- annuity rate ÷ 100
Worked example
With your inputs — ₹5,000/month at 10.0% for 30 years to age 60: the monthly rate is i = 0.833% and n = 30 × 12 = 360 instalments, compounding (each contribution earns from the month it's paid) to a corpus of about ₹1.14 Cr. Annuitising 40% (₹45.59 L) at 6.0% buys a pension of about ₹22,793/month, leaving a ₹68.38 L tax-free lump sum. This is a market-linked projection at a constant return for a level contribution, not a guarantee — pension income is taxable.
Most asked NPS questions
The National Pension System is a government-backed, market-linked retirement scheme regulated by the PFRDA. You contribute regularly until 60, your money is invested in a mix of equity and debt you choose, and at retirement the corpus funds a lump-sum withdrawal plus a lifelong annuity pension.
Your corpus is your monthly contributions compounded at your chosen return until 60. At exit you can take up to 60% as a tax-free lump sum and must annuitise at least 40% to buy a monthly pension. The pension equals the annuitised amount times the annuity rate, divided by 12 — this page shows all four numbers for your inputs.
Under Section 80CCD(1B) you can claim an extra deduction of up to ₹50,000 a year, over and above the ₹1.5 lakh 80C limit. This is one of the few ways to reduce taxable income beyond 80C — though it mainly helps under the old tax regime.
NPS rules require at least 40% of your Tier I corpus to be used to buy an annuity, which pays a monthly pension for life. The remaining up to 60% can be withdrawn tax-free as a lump sum. You can annuitise more than 40% if you want a larger pension and a smaller lump sum.
No. NPS is market-linked — your return depends on the equity/debt mix and how markets perform, and it varies year to year. The annuity rate at exit also depends on the plan and prevailing rates, and pension income is taxable. Treat every figure here as a planning estimate, not a promise.
The complete guide to NPS
How the corpus and pension are built
The National Pension System is a voluntary, market-linked retirement scheme regulated by the PFRDA. You contribute monthly through your working years, the money compounds in a mix of equity, corporate bonds and government securities you control, and the corpus grows tax-free until 60. This calculator compounds your monthly contribution at a constant assumed return, so treat the corpus as a projection, not a promise.
The 60/40 split at exit
At 60, NPS rules let you withdraw up to 60% of the Tier I corpus as a tax-free lump sum and require at least 40% to be annuitised into a lifelong monthly pension. You can annuitise more if you want a larger pension and a smaller lump sum. The pension equals the annuitised amount times the annuity rate, divided by 12 — so a larger corpus and a higher annuity rate both lift your monthly income.
Why starting earlier matters
Because the corpus compounds, every extra year in the market does outsized work — at a 10.0% return your money doubles roughly every 7.3 years. Starting in your twenties rather than your thirties can multiply the final corpus several times over for the same monthly contribution, because the earliest rupees get the most doublings. An annual step-up amplifies this further.
The 80CCD tax edge
NPS is one of the few ways to deduct income beyond the ₹1.5 lakh 80C limit: Section 80CCD(1B) allows an extra ₹50,000 deduction a year, and 80CCD(1) covers your contribution within the 80C ceiling — up to ₹2 lakh combined under the old regime. That edge mainly applies to the old tax regime. The pension you eventually draw from the annuity, however, is taxable as income.
Auto vs active allocation
Auto choice (lifecycle) automatically tapers your equity weight down as you age, reducing risk as you near retirement. Active choice lets you set the equity / corporate-bond / government-security mix yourself, holding a higher equity weight for more growth potential — and more volatility. Equity is capped under both options.
What this calculator does and doesn't guarantee
The return is market-linked and varies year to year; the annuity rate at exit depends on the plan and prevailing rates; and the 60/40 split and tax rules can change. The comparison rates shown above are typical long-term or current published figures for context only — not live quotes or guarantees. Use every number here as a planning estimate, and confirm the current rules before you commit.