NPS Calculator
The National Pension System (NPS) is a market-linked retirement scheme. This calculator projects your accumulated corpus and applies the current PFRDA exit rules to show how much you could withdraw as a lump sum versus how much must be used to purchase an annuity.
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What is the NPS Calculator?
The National Pension System (NPS) is a voluntary, market-linked retirement savings scheme regulated by the PFRDA. During your working years you contribute regularly, and the money is invested across equity, corporate bonds and government securities in a mix you choose. At retirement, part of the accumulated corpus can be withdrawn as a lump sum and the rest is used to buy an annuity that pays you a monthly pension for life.
NPS is known for its low costs, tax benefits, and the flexibility to choose your asset allocation.
How to Calculate
The NPS projection has two stages:
- Accumulation — your monthly contributions grow using the same future-value formula as a SIP, at your expected blended return, until retirement age.
- Exit split — the final corpus is divided into a lump-sum portion and a mandatory annuity portion, according to the corpus-size tiers set by PFRDA (see the withdrawal rules below).
Formula
The accumulation phase uses the same monthly-compounding future-value formula as a SIP, since NPS contributions behave like a market-linked SIP.
Normal exit rules (age 60+, per PFRDA's 2025 amendment):
- Corpus ≤ ₹8 lakh: 100% withdrawable as lump sum, no mandatory annuity.
- Corpus ₹8-12 lakh: up to ₹6 lakh as lump sum, remainder toward annuity/systematic withdrawal.
- Corpus > ₹12 lakh: maximum 80% as lump sum, minimum 20% must purchase an annuity.
This calculator applies the simplified ≤8L / 8-12L / >12L tiers using the maximum-lump-sum option at each tier.
Worked Example
Contributing ₹5,000/month from age 30 to 60 at an expected 9% return accumulates a corpus well above ₹12 lakh — in that case, at most 80% can be withdrawn as a lump sum, with the remaining 20% mandatorily used to purchase an annuity that pays you a monthly pension.
Definitions
- Monthly Contribution
- The amount you invest into your NPS account each month during your working years.
- Expected Annual Return
- Your assumption for the blended return across equity, corporate bonds and government securities. Market-linked, not guaranteed.
- Corpus at Retirement
- The total accumulated value of your NPS account at retirement age.
- Lump Sum Withdrawal
- The portion you can take as cash at exit, capped by the corpus tier under current PFRDA rules.
- Annuity Corpus
- The portion that must be used to buy a pension plan (annuity) that pays you a regular monthly income for life.
NPS Withdrawal & Exit Rules (2025)
Under the PFRDA (Exits and Withdrawals) Amendment Regulations, how much you can take as a lump sum depends on your corpus size at Normal Exit (age 60+ or after 15 years):
- Corpus up to ₹8 lakh: withdraw 100% as a lump sum — no annuity required.
- Corpus ₹8–12 lakh: up to ₹6 lakh as a lump sum, the balance via annuity or systematic withdrawal.
- Corpus above ₹12 lakh: maximum 80% as a lump sum, with at least 20% used to purchase an annuity.
For a Premature Exit (before age 60), the rules are stricter: 100% lump sum only if the corpus is ₹5 lakh or below; otherwise at most 20% as a lump sum with 80% mandatorily annuitised.
How to Use
- Enter your planned monthly NPS contribution.
- Enter your current age and planned retirement age (60 or later).
- Enter your expected annual return based on your chosen asset allocation (equity/corporate bonds/government securities).
- Read your projected corpus, along with the maximum lump sum and mandatory annuity split under current exit rules.