NPS Calculator — Indian National Pension Scheme
Enter your monthly salary, employee and employer NPS contribution percentages, years to retirement, expected return and annuity rate to get your projected Tier I corpus, the mandatory 40% annuity portion, tax-free lump sum withdrawal and estimated monthly pension.
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Total NPS Tier I corpus before annuity split
- 1
Monthly contribution
(10 + 14)% × 50,000 = 12,000 - 2
Monthly return rate
10% ÷ 12 ÷ 100 = 0.008333 - 3
Number of months
30 × 12 = 360 - 4
Growth factor (1+r)ⁿ
(1 + 0.008333)ⁿ = 19.8374Compound growth of one rupee over the full accumulation period. - 5
Corpus at retirement
12,000 × (19.8374 − 1) ÷ 0.008333 = 27,125,855
How does this calculator work?
NPS Tier I corpus = monthly_contribution × [(1+monthly_rate)^n − 1] / monthly_rate, where PMT = (emp% + er%) × salary. At retirement, ≥40% must buy an annuity; the rest is a tax-free lump sum. Monthly pension = annuity_corpus × annuity_rate / 12. Returns are market-linked; 2024 PFRDA rules apply.
Formula
How this is calculated
The National Pension System (NPS), administered by PFRDA, is a voluntary defined-contribution retirement scheme open to all Indian citizens aged 18–70. Under Tier I (the mandatory pension account), both the employee and employer deposit a percentage of the basic salary each month. These contributions are pooled into market-linked fund options — equity (E), corporate bonds (C), government securities (G) and alternative assets (A) — managed by registered Pension Fund Managers. The 2024 PFRDA guidelines allow central government employers to contribute 14% of basic + DA; most private-sector employers match the employee contribution of 10%.
At retirement (typically age 60), at least 40% of the accumulated corpus must be used to purchase an annuity from a PFRDA-empanelled insurance company, which then pays a monthly pension for life. The remaining 60% (or less if you annuitise more) is received as a tax-free lump sum. The annuity rate offered by insurers typically ranges 5–7% per year depending on the variant chosen (life-only, joint life, return-of-purchase-price, etc.).
This calculator uses the standard future-value-of-annuity formula with end-of-period contributions. Returns are not guaranteed — NPS funds are market-linked and actual outcomes will differ from the projection. The estimate ignores inflation, salary increments, changes in contribution rates and tax impact (Section 80CCD benefits are significant but beyond this calculator's scope).
Frequently asked questions
Employee contributions up to 10% of basic + DA are deductible under Section 80CCD(1) within the overall ₹1.5 lakh Section 80C limit, plus an additional ₹50,000 under Section 80CCD(1B). The employer contribution up to 14% (govt) or 10% (private) is deductible under Section 80CCD(2) without any ceiling. Consult a tax adviser for your personal situation.
Partial withdrawal (up to 25% of own contributions) is allowed after 3 years for specified purposes such as higher education, purchase of a house or treatment of serious illness. Premature exit before 60 requires 80% of the corpus to be annuitised. Full exit is only allowed at 60 (or after 3 years for late joiners).
PFRDA regulations require a minimum 40% of the Tier I corpus to purchase a life annuity from an empanelled insurer at the time of exit at age 60 or beyond. This ensures a guaranteed income stream in retirement. You can choose to annuitise a higher percentage — up to 100% — to receive a larger monthly pension.
Also known as
TG we-Calculate Editorial Team. (2026). NPS Calculator — Indian National Pension Scheme [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/national-pension-scheme-calculator
TG we-Calculate Editorial Team. "NPS Calculator — Indian National Pension Scheme." TG we-Calculate. 2026. https://we-calculate.com/calculator/national-pension-scheme-calculator.
TG we-Calculate Editorial Team, "NPS Calculator — Indian National Pension Scheme," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/national-pension-scheme-calculator
@misc{wecalculate_national_pension_scheme_calculator, title = {NPS Calculator — Indian National Pension Scheme}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/national-pension-scheme-calculator}}, year = {2026}, note = {TG we-Calculate} }
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