Quick answer
NPS builds a retirement corpus in market-linked funds. At exit, non-government subscribers now need to use only 20% for an annuity (pension) and can take up to 80% out, under PFRDA’s December 2025 rules. ₹5,000 a month from age 30 to 60 at 10% builds about ₹1.14 crore, which means about ₹11,400 a month in pension and ₹91 lakh as a lump sum.
Key takeaways
- Extra ₹50,000 deduction under 80CCD(1B) in the old regime, on top of 80C.
- Employer's contribution (up to 14% of basic) is deductible in the new regime too.
- Corpus up to ₹8 lakh can be withdrawn fully.
How the NPS calculator works
Contributions compound monthly at your expected return. At retirement, the chosen share buys an annuity. Monthly pension = annuity amount × annuity rate ÷ 12. Annuity rates from insurers are usually 5.5–7% and are fully taxable as income.
Frequently asked questions
How much pension will I get from NPS?
It depends on your corpus, the share used for the annuity, and annuity rates. Every ₹10 lakh used for an annuity at 6% pays about ₹5,000 a month.
What are the new NPS withdrawal rules?
From December 2025, non-government subscribers who have been in NPS for at least 15 years need to buy an annuity with only 20% of the corpus and can withdraw up to 80%. Corpus up to ₹8 lakh can be withdrawn fully. Check PFRDA for the latest conditions and tax rules.
What return should I expect from NPS?
Equity-heavy NPS portfolios have historically returned 9–12% a year over long periods. Government bond and corporate bond funds are lower. Use 8–10% for a balanced mix.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.