NPS Calculator
The National Pension System (NPS) builds a retirement corpus from monthly contributions. At 60 part of it is paid as a lump sum and the rest buys an annuity that pays you a pension for life.
How to use it
- Enter your monthly contribution, current age and the return you expect.
- Choose how much to take as a lump sum (up to 80% for non-government subscribers).
- Set the annuity rate to see your monthly pension.
How it is calculated
Corpus = future value of monthly contributions until 60. Monthly pension = annuity corpus x annuity rate / 12. Lump sum = corpus x lump-sum share.
Frequently asked questions
How much pension will Rs 5,000 a month in NPS give?
Starting at 30 with a 10% return, the corpus at 60 is about Rs 1.14 crore. With 40% in an annuity at 6%, the pension is about Rs 22,800 a month.
How much can I withdraw at 60?
Non-government subscribers can take up to 80% as a lump sum; at least 20% must buy an annuity. If the corpus is Rs 8 lakh or less, all of it can be withdrawn.
Is the NPS lump sum tax-free?
60% of the corpus is tax-free. Treat any lump sum above that as taxable until official rules say otherwise. The pension is taxed as income.
What tax benefit does NPS give?
In the old regime you can claim up to Rs 50,000 extra for your own contribution. Your employer's contribution up to 14% of basic is deductible in the new regime.