What is NPS and who can subscribe?

NPS (National Pension System) is a PFRDA-regulated retirement scheme. Any Indian citizen aged 18–70 can open Tier I (compulsory, lock-in until 60) and Tier II (voluntary, withdrawable). Salaried employees often access via employer-route (corporate NPS).

What returns should I expect on NPS?

Historical NPS Tier I returns: equity (E) fund 10–12%, corporate bonds (C) 8–9%, government bonds (G) 7–8%. Lifecycle (LC) funds auto-shift equity:debt ratio with age. The calculator lets you flex the blended return rate.

What are NPS tax benefits in the new vs old tax regime?

Old regime: 80CCD(1) up to Rs 1.5L (within 80C cap) + 80CCD(1B) Rs 50K extra + 80CCD(2) employer contribution up to 10% of salary. New regime: only 80CCD(2) (employer) remains as a deduction.

How is the NPS pension calculated?

At retirement (60), 60% of the corpus is lump-sum (tax-free) and 40% mandatorily buys an annuity from a PFRDA-empanelled insurer. Annuity rate is roughly 6%–7% (lifetime). The calculator projects both the lumpsum and the monthly pension.

Can I withdraw NPS before 60?

Partial withdrawal up to 25% of own contribution allowed for specified reasons (children's education, marriage, home purchase, medical) after 3 years. Full premature exit allowed at any age but 80% must buy an annuity.

Is the NPS annuity taxable?

Yes — the monthly pension payout is taxable at your slab rate as 'income from other sources'. The 60% lumpsum withdrawal at 60 is tax-free.

Folio 21 · NPS Calculator

NPS Calculator

Reviewed by Jay Patel· Last reviewed: 01 Aug 2026

Jay Patel

Co-Founder & Chief Loan Advisor

Estimate your NPS corpus and expected pension at retirement.

What makes this calculator different

We split the corpus into the 60% lump-sum + 40% mandatory annuity per PFRDA rules and project the monthly pension at realistic annuity rates (6–7% lifetime) — most NPS calculators stop at the corpus number without showing the actual pension you'll receive.

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