NPS Calculator —
Corpus, Pension & Tax Benefits
Estimate your National Pension System corpus at age 60, the tax-free 60% lump sum, the 40% annuity corpus and your indicative monthly pension — plus the full Section 80CCD tax-saving picture.
Your NPS maturity corpus depends on your monthly contribution, expected return (historically 7–10% p.a.) and years invested. At age 60, up to 60% is a tax-free lump sum and at least 40% must buy an annuity that pays a monthly pension. Contributions get 80CCD(1) (within the ₹1.5L 80C limit), an extra ₹50,000 under 80CCD(1B), and employer contributions under 80CCD(2) — the last one available even in the new tax regime. Enter your numbers below to see your corpus and pension.
NPS Maturity Calculator
Enter your monthly contribution, expected annual return and the number of years to retirement. The calculator uses the standard monthly-SIP compounding formula and shows the corpus at 60, the tax-free lump sum, the annuity corpus and an indicative monthly pension.
How the NPS Corpus Is Calculated
NPS contributions grow like a monthly SIP. The calculator uses the future-value formula for a series of monthly investments compounded monthly:
M = P × [((1 + i)n − 1) / i] × (1 + i) — where P is the monthly contribution, i = annual return ÷ 12, and n = years × 12 months.
- P — your fixed monthly contribution (minimum ₹500 per contribution, ₹1,000/year for Tier I).
- i — expected monthly return; NPS is market-linked and has historically returned 7–10% p.a. depending on your equity (E), corporate-debt (C) and government-bond (G) allocation.
- n — total months until you turn 60 (the standard NPS maturity age).
NPS returns depend on your fund choice and the Active/Auto allocation you pick. The 7–10% figure is a historical range, not a promise. Use a conservative rate (say 8%) for planning and treat the output as an estimate.
Sample NPS Corpus at Different Contributions
Indicative corpus at age 60 assuming a 10% expected return over the full tenure (monthly-SIP compounding). Lump sum = 60% of corpus; annuity corpus = 40%.
| Monthly ₹ | Tenure | Est. corpus at 60 | Tax-free lump sum (60%) | Annuity corpus (40%) |
|---|---|---|---|---|
| ₹2,000 | 30 yrs | ₹45.6 lakh | ₹27.4 lakh | ₹18.2 lakh |
| ₹5,000 | 25 yrs | ₹66.9 lakh | ₹40.1 lakh | ₹26.8 lakh |
| ₹5,000 | 30 yrs | ₹1.14 crore | ₹68.4 lakh | ₹45.6 lakh |
| ₹10,000 | 25 yrs | ₹1.34 crore | ₹80.3 lakh | ₹53.5 lakh |
| ₹10,000 | 30 yrs | ₹2.28 crore | ₹1.37 crore | ₹91.3 lakh |
Illustrative only, at 10% p.a. Actual returns vary with fund choice and market performance. Use the calculator above with your own numbers.
NPS Tax Benefits — Section 80CCD
NPS is one of the few instruments offering a deduction over and above the ₹1.5 lakh Section 80C limit. Here is who can claim what — and which benefits survive in the new tax regime.
| Section | Who claims | Limit | Old regime | New regime |
|---|---|---|---|---|
| 80CCD(1) | Employee / self-employed | Within the ₹1.5L 80C ceiling (10% of salary for employees; 20% of gross income for self-employed) | Yes | No |
| 80CCD(1B) | All NPS subscribers | ₹50,000 extra, over and above 80C | Yes | No |
| 80CCD(2) | Salaried (employer NPS contribution) | 14% of salary (govt); 14% of salary now allowed for private employees too under the new regime | Yes | Yes |
"Salary" for NPS = Basic + DA. 80CCD(2) is the only NPS deduction available in the new tax regime, making employer NPS highly tax-efficient. Verify current limits at incometax.gov.in.
Under the old regime, 80CCD(1B) gives you a clean extra ₹50,000 deduction on top of the ₹1.5 lakh 80C. A taxpayer in the 30% slab saves roughly ₹15,600 (incl. cess) a year just from this — the single biggest reason to hold NPS.
Want to structure your salary and NPS for the maximum deduction?
Talk to a Tax Expert →What Happens to Your NPS at Retirement
At maturity the corpus is split into a withdrawable lump sum and a compulsory annuity that funds your pension:
| Component | Share | Tax treatment | Notes |
|---|---|---|---|
| Lump-sum withdrawal | Up to 60% | Fully tax-free | Withdrawn immediately at 60; no tax payable. |
| Annuity corpus | Minimum 40% | Corpus exempt; pension taxable | Buys an annuity from a PFRDA-empanelled insurer; monthly pension is taxed at slab rate. |
| Full corpus ≤ ₹5 lakh | 100% | Tax-free | You may withdraw the entire amount and skip the annuity. |
Annuity rates typically range 5.5%–7.5% depending on the insurer and annuity option (life, joint-life, return-of-purchase-price, etc.). The calculator above assumes 6% for the pension estimate.
You can also defer withdrawal or continue contributing up to age 75. Compare NPS with other options using our PPF calculator and Section 80C guide.
NPS Calculator — Frequently Asked Questions
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