Estimate your National Pension Scheme corpus and monthly pension at retirement. See how the 60/40 lumpsum-annuity split works for your contributions.
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Calculate NPS Corpus
Most people miss this deduction. Equity NPS has historically returned 9–12% p.a. over 10 years.
| Provider | Type | Why pick this | |
|---|---|---|---|
GRW Groww NPS5 Cr+ investors | Online | Easiest NPS UI · invest in 5 mins | Open NPS |
ETM ET Money NPS0% commission | Online | Zero commission · scheme switch in-app | Open NPS |
NSD NSDL eNPSOfficial govt CRA | Official | Government portal — direct registration | Visit NSDL |
KFI KFintech NPS | Official | Alternative CRA · cheaper account ops | Visit KFintech |
HDF HDFC PensionTop equity PFM returns | PFM | Top-performing equity-fund pension manager | View HDFC |
Returns based on government-declared rates and historical performance. Affiliate links — we may earn a commission at no cost to you.
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Assumes 10% annual return on corpus, 6% annuity rate on the mandatory 40% annuity purchase. Monthly pension is approximate.
| Monthly Contribution | Years to Retirement | Total Corpus | Lumpsum (60%) | ~Monthly Pension |
|---|---|---|---|---|
| ₹3,000 | 30 yrs | ₹67.9L | ₹40.7L | ₹13,580 |
| ₹5,000 | 30 yrs | ₹1.13Cr | ₹67.9L | ₹22,630 |
| ₹10,000 | 25 yrs | ₹1.33Cr | ₹79.8L | ₹26,620 |
| ₹10,000 | 30 yrs | ₹2.27Cr | ₹1.36Cr | ₹45,260 |
| ₹20,000 | 20 yrs | ₹1.52Cr | ₹91.2L | ₹30,390 |
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NPS (National Pension System) is a government-backed retirement savings scheme. You contribute monthly and at retirement get 60% as lumpsum (tax-free) and must use 40% to buy an annuity for monthly pension.
Under Section 80CCD(1): up to ₹1.5L within 80C limit. Under 80CCD(1B): additional ₹50K deduction. Employer contribution under 80CCD(2): up to 10% of basic (no upper limit). Lumpsum at maturity: 60% tax-free.
NPS offers multiple asset classes: Equity (Tier I) has given 10–13% historical returns. Corporate bonds: 8–10%. Government Securities: 7–9%. Lifecycle funds automatically shift allocation with age.
Tier 1 is mandatory for government employees and offers tax benefits under 80CCD(1) and 80CCD(1B). It has a lock-in till age 60 with specific partial withdrawal rules. Tier 2 is voluntary with no lock-in and no tax benefits except for government employees. Use Tier 1 first to exhaust tax benefits; Tier 2 is a flexible investment account without the annuity requirement.
At age 60: maximum 60% can be withdrawn as a lump sum (tax-free). Minimum 40% must be used to buy an annuity providing monthly pension, which is taxable as income. If the total corpus is below Rs 5 lakh, 100% can be withdrawn as lump sum. You can defer withdrawal up to age 75.
EPF gives guaranteed 8.15% on all contributions and is fully liquid at retirement. NPS equity can return 12%+ but 40% is locked into annuity. NPS has a unique advantage: the extra Rs 50,000 Section 80CCD(1B) deduction available to all taxpayers. For tax efficiency, use both: EPF for the guaranteed base plus NPS to claim the additional 80CCD(1B) deduction.
Current annuity rates in India range from 5.5-7% per year depending on the insurer and type chosen. On a Rs 1 crore NPS corpus at retirement, if Rs 40L buys annuity at 6.5%, you get Rs 2,167/month. The remaining Rs 60L lump sum can be invested for additional income. The NPS calculator shows projected corpus - compute annuity income separately using the annuity rate.
At NPS maturity, you purchase an annuity from an IRDAI-approved insurer (LIC, SBI Life, HDFC Life, etc.) using the mandatory 40% of your corpus. Annuity rate = annual pension / purchase price × 100. Typical rates: Life annuity with return of purchase price: 5.5-6%. Life annuity without return of purchase price (higher monthly payout): 6.5-7.5%. LIC and SBI Life typically offer the highest rates. Always compare rates from all empanelled insurers at retirement — a 1% difference in annuity rate on Rs 40L corpus means Rs 33,333/year more pension for life.
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