NPS Calculator

Pension corpus & monthly pension at 60

Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026

How to use: Enter your age, monthly contribution, expected return and annuity choices — we project your corpus at 60, the tax-free lump sum, and your monthly pension.

Example₹5,000/month from age 30 at 10% → about ₹1.1 Cr at 60, ~₹66 lakh lump sum + ~₹22,000/month pension

How old are you now?

yrs

Contributions run until 60

How much will you put in each month?

₹

What return do you expect?

Depends on your equity/debt mix — typically 9–11%

How much goes to your pension?

Minimum is 20% for a corpus above ₹12 lakh (PFRDA 2025). Keep 40% or more to take the whole lump sum tax-free

What pension rate do you expect?

The yearly pension rate your annuity provider offers

Pension corpus at 60

🎉 ₹1 Cr+ corpus

₹1,13,02,440

Total you invest

₹18,00,000

Wealth gained

₹95,02,440

At 60, your corpus splits into

Tax-free lump sum

₹67,81,464

Monthly pension

₹22,605

40% of the corpus (₹45,20,976) buys the annuity that pays your monthly pension; the remaining 60% comes out as a lump sum. Only 60% of the corpus is tax-free under Section 10(12A); a lump sum above that is taxed at your slab.

NPS also gives an extra ₹50,000 tax deduction under Section 80CCD(1B), over and above the ₹1.5 lakh 80C limit — a reason many use it purely for the tax break.

How it works

The National Pension System is a low-cost, market-linked retirement scheme with a unique extra tax break (₹50,000 under Section 80CCD(1B)). This calculator projects what your contributions become by 60 — and, just as importantly, what that means as actual monthly income.

Enter your age, monthly contribution and expected return, and it builds your corpus at 60. Then it applies PFRDA's 2025 exit rules for your corpus — the minimum that must buy an annuity (your pension), the lump sum, and how much of that lump sum is tax-free — and estimates the monthly pension from the annuity rate you set.

Planning retirement more broadly? Pair this with the retirement calculator to see your total corpus need, and PPF for the safe, fixed-return part of your plan.

Method & sources

The corpus is the future value of your monthly contributions compounded at the expected return to age 60 (standard annuity formula). At 60 the corpus is split per the PFRDA (Exits and Withdrawals under NPS) Regulations, 2025 for non-government subscribers — lump sum up to the whole corpus at or below ₹8 lakh, capped at ₹6 lakh between ₹8 and ₹12 lakh, and up to 80% above ₹12 lakh with at least 20% annuitised. Section 10(12A) exempts 60% of the corpus, so a lump sum above that is shown as taxable. The monthly pension is the annuitised amount times the annuity rate, divided by 12. Returns and annuity rates are assumptions, not guarantees; the actual annuity rate is set when you purchase it. Educational estimate, not financial advice.

What this doesn't cover

Returns are market-linked, not guaranteed.
Exit rules are for non-government subscribers (PFRDA 2025): at least 20% annuitised above a ₹12 lakh corpus; government employees differ. Only 60% of the corpus is tax-free. The annuity rate here is an assumption.
Ignores fund-management charges.

Frequently asked

How is the NPS pension calculated?: Your monthly contributions grow at an expected return until you turn 60, building a corpus. At 60, part of that corpus buys an annuity, which pays a regular pension, and the rest can be withdrawn as a lump sum. Under PFRDA's 2025 exit rules a non-government subscriber must annuitise at least 20% of a corpus above ₹12 lakh. The monthly pension depends on the annuity rate your provider offers. This calculator estimates all three — corpus, lump sum and pension.
How much of the NPS corpus can I withdraw at 60?: For non-government subscribers, PFRDA's Exits and Withdrawals Regulations, 2025 set it by corpus size: up to ₹8 lakh can all be taken as a lump sum; between ₹8 lakh and ₹12 lakh the lump sum is capped at ₹6 lakh, with the rest paid through systematic withdrawals or an annuity; above ₹12 lakh up to 80% can be withdrawn and at least 20% must buy an annuity. Government employees follow different rules.
What return should I assume for NPS?: It depends on your asset mix. NPS lets you allocate across equity (E), corporate bonds (C) and government securities (G). A higher equity share has historically returned around 10–12% over long periods; a conservative debt-heavy mix is lower. Use a figure you're comfortable defending — 9–11% is a common long-run assumption.
What tax benefits does NPS offer?: NPS gives an exclusive extra deduction of ₹50,000 under Section 80CCD(1B) (section 124 of the new Income-tax Act, 2025), over and above the ₹1.5 lakh limit under Section 80C (section 123 of the new Income-tax Act, 2025) — so up to ₹2 lakh in total. Employer contributions under 80CCD(2) can be deductible too. At exit, only 60% of the corpus is tax-free under Section 10(12A) (Schedule II of the new Income-tax Act, 2025), so a lump sum above 60% — now allowed up to 80% — is taxed at your slab. The pension is taxed as income in the year you receive it.
What is the annuity rate?: It's the yearly rate at which your annuity provider converts the annuitised corpus into a pension — roughly 5.5–7% depending on the annuity type and rates at the time. A ₹1 crore annuity corpus at 6% pays about ₹50,000 a month. The actual rate is fixed when you buy the annuity at 60.
Can I lower how much goes to the pension?: Yes, since PFRDA's 2025 exit rules — to 20% for a corpus above ₹12 lakh, and further for smaller ones. The catch is tax: only 60% of the corpus comes out tax-free, so annuitising less than 40% makes part of the lump sum taxable at your slab. The calculator applies the legal minimum for your corpus and shows any taxable portion.

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