NPS Calculator India (2026)
Calculate retirement corpus, monthly pension & tax savings. Updated for PFRDA Dec 2025 rules.
NPS Details
Non-govt: max 80% lump sum, min 20% annuity — PFRDA circular, Dec 2025
💡 Key Benefits
- 🛡️ Extra ₹50,000 deduction under 80CCD(1B)
- 💸 80% lump sum is tax-free at maturity
- 📊 Market-linked returns (8–13% historical)
Withdrawal at Maturity
Non-govt: max 80% lump sum, min 20% annuity — PFRDA Dec 2025
Pension = Annuity Corpus × 6% ÷ 12 | ₹5L-or-less corpus → 100% lump sum allowed
Year-wise Corpus Growth
| Year | Age | Annual Investment | Cumulative | Corpus Value | Gains |
|---|---|---|---|---|---|
| 1 | 31 | ₹60,000 | ₹60,000 | ₹62,828 | ₹2,828 |
| 2 | 32 | ₹60,000 | ₹1,20,000 | ₹1,32,235 | ₹12,235 |
| 3 | 33 | ₹60,000 | ₹1,80,000 | ₹2,08,909 | ₹28,909 |
| 4 | 34 | ₹60,000 | ₹2,40,000 | ₹2,93,612 | ₹53,612 |
| 5 | 35 | ₹60,000 | ₹3,00,000 | ₹3,87,185 | ₹87,185 |
Disclaimer: NPS returns are market-linked and not guaranteed. Annuity rates shown are illustrative. Actual monthly pension depends on the annuity plan and provider chosen at maturity. This calculator is for planning purposes only.
NPS Returns Calculator — How It Works
The NPS calculator uses monthly compounding to estimate your retirement corpus. Each month, your existing corpus grows at (annual return ÷ 12) and your new contribution is added.
At retirement, the corpus is split into lump sum (up to 80% tax-free for non-government subscribers under PFRDA Dec 2025 rules) and annuity (minimum 20%, used to purchase monthly pension). Monthly Pension = (Annuity Amount × Annuity Rate) ÷ 12.
NPS Tax Benefits — Save Up to ₹2 Lakh Every Year
| Section | Benefit | Annual Limit |
|---|---|---|
| 80CCD(1) | Own contribution deduction | Up to 10% of salary, within ₹1.5L of 80C |
| 80CCD(1B) | Additional NPS deduction (exclusive) | Extra ₹50,000 over and above 80C limit |
| 80CCD(2) | Employer contribution | Up to 10% of basic salary — no upper limit |
| Total (salaried) | All three combined | ₹2,00,000+ for salaried employees |
Key NPS Rule Changes You Must Know (Updated December 2025)
PFRDA Dec 2025PFRDA introduced significant amendments in late 2025 that affect every NPS subscriber:
| Change | Old Rule | New Rule (Dec 2025) |
|---|---|---|
| Maximum NPS age | 75 years | 85 years |
| Lump sum withdrawal (non-govt) | 60% maximum | 80% maximum |
| Minimum annuity (non-govt) | 40% mandatory | 20% mandatory |
| Small corpus rule | 100% lump sum if ≤ ₹2 lakh | 100% lump sum if ≤ ₹5 lakh |
| Systematic Lump sum Withdrawal (SLW) | Not available | Now available |
NPS vs PPF vs EPF — Complete Comparison for 2026
| Feature | NPS | PPF | EPF |
|---|---|---|---|
| Who can invest | All citizens 18–70 | All citizens | Salaried employees only |
| Returns | Market-linked 8–12% | Fixed ~7.1% | Fixed ~8.25% |
| Risk level | Moderate | Zero | Zero |
| Tax on maturity | 80% tax-free lump sum | 100% tax-free | 100% tax-free |
| Withdrawal flexibility | Partial after 3 years | After 7 years | After 5 years |
| Extra tax benefit | ₹50,000 under 80CCD(1B) | None | None |
| Lock-in | Until retirement (60) | 15 years | Until employment ends |
| Best for | High returns + max tax saving | Safe capital + tax | Salaried + employer match |
Verdict: NPS is best for investors wanting the highest potential corpus and maximum tax savings. PPF is best for conservative investors. EPF is mandatory for salaried employees and provides solid baseline retirement savings.
NPS Tier 1 vs Tier 2 Account — Key Differences
| Feature | Tier 1 (Pension Account) | Tier 2 (Voluntary Savings) |
|---|---|---|
| Purpose | Retirement savings | Flexible savings |
| Withdrawals | Restricted until age 60 | Anytime, no restrictions |
| Tax benefits | Yes — 80CCD(1), (1B), (2) | No tax deduction |
| Minimum contribution | ₹1,000/year | No minimum |
| Lock-in | Yes — until retirement | No lock-in |
| Who should use | Everyone investing in NPS | Those wanting liquid NPS |
You must have an active Tier 1 account to open a Tier 2 account. Always prioritise Tier 1 first for tax benefits and retirement planning.
Is NPS Right for You?
✅ Suitable for:
- •Salaried professionals wanting extra ₹50,000 tax deduction beyond 80C
- •Self-employed individuals building their own retirement corpus
- •Government employees where NPS is mandatory
- •Anyone aged 25–45 with long investment horizon and can tolerate market-linked returns
⚠️ Not ideal for:
- •People within 5 years of retirement (insufficient time for compounding)
- •Extremely risk-averse investors who need guaranteed returns (PPF or EPF is better)
- •People who need liquidity before retirement age
Frequently Asked Questions — NPS Calculator
What is the NPS interest rate in India in 2026?
What is the minimum NPS contribution per month?
How much monthly pension will I get from NPS?
Can I withdraw NPS before 60 years?
What happens to NPS corpus after death?
NPS or Mutual Fund SIP — which is better for retirement?
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Content by Satyapal Khakhal, Founder, gpaisa.in | Updated: May 2026