NPS Calculator (National Pension System)
Institutional PFRDA retirement planner modeling the 60% tax-free lump sum exit and 40% mandatory lifelong annuity pension.
NPS Tier I Contribution
Total NPS Corpus at Age 60
₹₹2,80,83,353.30
Total Invested: ₹₹38,40,000.00
60% Tax-Free Lump Sum
₹₹1,68,50,011.98
100% Tax-Exempt at withdrawal
Estimated Monthly Pension for Life
₹₹56,166.71 / month
From ₹₹1,12,33,341.32 annuity corpus
NPS Maturity & Annuity Payout Model
All calculations on InvestResearch India execute with 28-digit precision arithmetic via decimal.js, eliminating floating-point drift and adhering to statutory regulatory conventions.
Example: ₹10,000 Monthly NPS Contribution from Age 30 to 60 (30 Years) @ 10% CAGR
Monthly Deposit: ₹10,000 | Age: 30 | Retirement: 60 | Expected Return: 10.0% | Annuity Share: 40% @ 6.5% rate
1. Total Invested across 30 years: ₹36,00,000 2. Total Accumulated Corpus: ₹2,27,93,640 (~₹2.28 Crores) 3. 60% Tax-Free Lump Sum Cash: ₹1,36,76,184 4. 40% Deployed in Annuity: ₹91,17,456 5. Lifelong Monthly Pension = ( ₹91,17,456 × 6.5% ) / 12 = ₹49,386 per month
Statutory Tax Framework (Union Budget FY 2026–27)
Under the Old Tax Regime, NPS Tier-1 allows exclusive tax deduction up to ₹50,000 under Section 80CCD(1B), beyond the Section 80C limit. Under Section 80CCD(2), employer contribution up to 14% (Govt) or 10% (Private) of Basic + DA is deductible even under the New Tax Regime.
Frequently Asked Questions
Can I choose my asset allocation in NPS?
Yes. Subscribers can select Active Choice (allocating up to 75% in Equity Scheme E, Corporate Bonds Scheme C, and Govt Securities Scheme G) or Auto Choice (lifecycle funds that automatically de-risk your equity allocation as you age).
Is the monthly annuity pension from NPS taxable?
Yes. While the 60% lump sum exit is 100% tax-free, the monthly annuity payouts received from the life insurance provider are treated as income and taxed at your applicable personal income tax slab.