How to use the NPS calculator
Enter your age, how much you will contribute every month, the return you expect and when you plan to exit. Choose whether you are a government employee, how much of the corpus will buy a pension (annuity) and the annuity rate. The calculator shows your corpus, the lump sum you can take, how much of it is tax-free and your monthly pension.
For example, ₹5,000 a month from age 30 to 60 at 10% grows to about ₹1.14 crore. Using 40% of it for a pension at 6% pays about ₹22,800 a month, and you can take about ₹68.4 lakh as a tax-free lump sum.
New NPS exit rules
PFRDA changed the exit rules through an amendment notified on 19 December 2025. You can now also put off your exit and stay invested until age 85.
| Private sector / self-employed | Government employees | |
|---|---|---|
| Maximum lump sum | 80% | 60% |
| Minimum for pension (annuity) | 20% | 40% |
| Full withdrawal allowed if corpus is | Up to ₹8 lakh | Up to ₹8 lakh |
If the corpus is above ₹8 lakh but not more than ₹12 lakh, you can take up to ₹6 lakh as a lump sum and receive the rest through systematic unit redemption (SUR) in instalments, or follow the standard split above.
Up to 60% of the corpus is tax-free. If you take an 80% lump sum, the extra 20% is taxed at your slab rate, so taking more cash is not always better.
How the numbers are calculated
Corpus = monthly contributions grown at r ÷ 12 every monthMonthly pension = corpus × annuity share × annuity rate ÷ 12
NPS tax benefits
- Up to ₹1.5 lakh under 80C and an extra ₹50,000 under 80CCD(1B), in the old regime.
- Your employer's contribution is deductible under 80CCD(2): up to 14% of basic pay + DA in the new regime, for every employer; in the old regime, up to 14% for government employers and 10% for others.
- The pension is taxed as income every year.
Frequently asked questions
How much can I withdraw from NPS at 60?
Since PFRDA's December 2025 changes, private-sector and self-employed subscribers can take up to 80% of the corpus as a lump sum and must use at least 20% to buy a pension. Government employees must still use at least 40% for a pension. A corpus of up to ₹8 lakh can be withdrawn in full by government and private subscribers alike; between ₹8 lakh and ₹12 lakh, up to ₹6 lakh can be taken as a lump sum. You can also stay invested until 85.
Is the NPS lump sum tax-free?
Up to 60% of the corpus is tax-free. If you take more than that, the extra part is added to your income and taxed at your slab rate. The monthly pension is also taxable.
What return does NPS give?
NPS returns depend on your scheme and equity share. Equity schemes have returned about 9–12% a year over the long run, and government securities schemes about 8–9%. Returns are not guaranteed.
How is the monthly pension calculated?
The amount you use to buy an annuity is multiplied by the annuity rate and divided by 12. At 6% a year, every ₹10 lakh in the annuity pays about ₹5,000 a month.
What tax benefits does NPS give?
In the old regime you can claim up to ₹1.5 lakh under 80C and an extra ₹50,000 under 80CCD(1B). Your employer's contribution (80CCD(2)) is deductible up to 14% of basic pay + DA in the new regime; in the old regime the limit is 14% for government employers and 10% for others.
Last reviewed: 13-10-2026. Rates and rules are checked against official sources; tell us if something has changed. Contact