NPS Calculator — Corpus, Lump Sum & Monthly Pension (2026)
Estimate your National Pension System corpus at 60, the 60% tax-free lump sum, and the monthly pension from the mandatory 40% annuity. NPS is market-linked — set your own expected return.
How the NPS maturity split works
Contributions grow like a SIP until age 60. At exit, a minimum of 40% of the corpus must purchase an annuity that pays your pension; up to 60% is paid out as a tax-free lump sum. This calculator assumes a 6% annuity rate.
Lump sum = 60% of corpus · Monthly pension = corpus × 40% × 6% ÷ 12
Example: NPS at 10% expected return, retiring at 60
| Monthly contribution | Start age | Corpus at 60 | Lump sum (60%) | Monthly pension |
|---|---|---|---|---|
| ₹5,000 | 30 | ₹1,13,96,627 | ₹68,37,976 | ₹22,793 |
| ₹5,000 | 35 | ₹66,89,452 | ₹40,13,671 | ₹13,379 |
| ₹10,000 | 30 | ₹2,27,93,253 | ₹1,36,75,952 | ₹45,587 |
At a 12% assumption, ₹5,000/month from age 30 grows to about ₹1.76 crore — a ₹1.06 crore lump sum and ₹35,299 monthly pension. Returns are not guaranteed; actuals depend on your equity/debt mix.
NPS tax benefits (July 2026)
| Benefit | Detail |
|---|---|
| 80CCD(1B) | Extra ₹50,000 deduction (old regime), beyond the ₹1.5L 80C limit |
| Lump sum at 60 | Up to 60% of corpus, tax-free |
| Annuity | Minimum 40% of corpus; pension is taxable as income |
| NPS Vatsalya | NPS accounts for minors, opened by parents/guardians |
Frequently asked questions
How is the NPS pension calculated at 60?
At 60, a minimum of 40% of your NPS corpus must buy an annuity; up to 60% can be withdrawn as a tax-free lump sum. At a 6% annuity rate, monthly pension = corpus × 40% × 6% ÷ 12. A ₹1.14 crore corpus gives roughly ₹22,793 per month plus a ₹68.4 lakh lump sum.
Is NPS return guaranteed?
No. NPS is market-linked — your money is invested in equity, corporate bonds and government securities by pension fund managers. Returns depend on markets and your asset mix; this calculator lets you set the expected return assumption.
What extra tax benefit does NPS give?
Under the old regime, Section 80CCD(1B) gives an additional ₹50,000 deduction for NPS contributions, over and above the ₹1.5 lakh 80C limit. Under the Income Tax Act 2025 (effective 1 April 2026) sections are renumbered but amounts are identical.
Can I open NPS for my child?
Yes. NPS Vatsalya allows parents or guardians to open an NPS account for minors, which converts to a regular NPS account when the child turns 18.
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