NPS Calculator
National Pension System retirement planner — project corpus at 60, the 60% tax-free lumpsum, and the monthly pension from the 40% annuity buy.
🇮🇳All amounts in ₹ INR · India tax law · FY 2025–26
NPS inputs
Mandatory minimum 40% for annuity; rest is tax-free lumpsum.
Corpus at 60
₹1,13,96,627
Lumpsum (tax-free)
₹68,37,976
Annuity buy
₹45,58,651
Monthly pension
₹22,793
What is the National Pension System?
NPS is a low-cost, market-linked retirement scheme regulated by PFRDA. You contribute monthly till age 60. At 60, you take up to 60% as a tax-free lumpsum and must use at least 40% to buy an annuity that pays you a monthly pension for life. Equity exposure is capped at 75% (Active Choice) or auto-allocated by age (Auto Choice).
Tax benefits
- 80C: contributions counted in ₹1.5L limit.
- 80CCD(1B): extra ₹50,000 over 80C — available in both regimes.
- 80CCD(2): employer contribution up to 14% of basic — exempt under both regimes. The single biggest under-used new-regime perk for salaried.
- 60% lumpsum at 60 is fully tax-free.
- Annuity income taxed at slab rate when received.
Tier I is the locked retirement account with tax benefits. Tier II is a flexible add-on account — no tax benefits, withdraw anytime.
Partial withdrawal allowed after 3 years for specific reasons (home, education, medical). Full exit before 60: only 20% lumpsum, 80% must buy annuity.
Yes, at your slab rate in the year received. Plan annuity buy when you are likely in a lower bracket.