Selvayana: NPS calculatorEducational estimate, not investment advice. Selvayana is not registered with SEBI as an Investment Adviser or Research Analyst. Figures use the assumptions shown and are not predictions.
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Detailed breakdown
NPS calculator: a quick guide
What is NPS?
The National Pension System (NPS) is a government-regulated retirement scheme run under PFRDA. You contribute while working; at exit, part of the corpus can be taken as a lumpsum and part buys an annuity that pays a pension.
How this calculator works it out
Your current balance and contributions grow monthly at your assumed return until your exit age. The calculator then applies PFRDA’s December 2025 exit rules to split the corpus into a lumpsum and an annuity, and the monthly pension is the annuity amount multiplied by your expected annuity rate.
An example
At 30, with ₹2 lakh in NPS and ₹5,000 a month rising 5% a year at an assumed 10%, the corpus at 60 is about ₹2.01 crore. Using 20% to buy an annuity at 6% gives a pension of about ₹20,084 a month, and about ₹1.61 crore can be taken as a lumpsum.
Good to know
A corpus up to ₹8 lakh can be withdrawn fully. Above ₹12 lakh, at least 20% must buy an annuity (40% for government employees).
The annuity rate is fixed when you buy it, and annuity income is taxable as income.
Check the current rules on the PFRDA website before you decide.
How it's calculated
Contributions and your existing balance compound monthly until your exit age. Under PFRDA's December 2025 exit rules, a corpus up to ₹8 lakh can be withdrawn fully. Between ₹8 lakh and ₹12 lakh, up to ₹6 lakh can be taken as a lumpsum and the rest in instalments over at least 6 years or as an annuity. Above ₹12 lakh, at least 20% must buy an annuity (40% for government employees). The pension is the annuity amount multiplied by the annuity rate.
Common questions
Is the NPS lumpsum tax-free?
Up to 60% of the corpus is currently tax-free on exit. Any lumpsum above that may be taxable. Check the latest rules before you exit.
What return should I assume for NPS?
Returns depend on how much is in equity and on markets, and can be much lower than in the past. Use a cautious figure and compare a few. PFRDA and pension fund websites publish scheme returns if you want to check history.
What annuity rate is realistic?
Annuity rates from insurers usually range from about 5.5% to 7.5% a year depending on the option you choose and your age.
For awareness only. Not investment advice or a recommendation to buy, sell or hold any security or product. All figures are estimates based on the inputs and assumptions shown; actual results will differ and may be much lower. No return is guaranteed. Investments in securities market are subject to market risks. Read all related documents carefully before investing. Consult a SEBI Registered Investment Adviser before acting. Printed from Selvayana on .