NPS Calculator 2026 – Calculate NPS Corpus and Pension for Government Employees
Calculate retirement corpus, pension, and lump sum under the National Pension System
The National Pension System (NPS) is the default pension scheme for central government employees who joined on or after January 1, 2004. Every month, you contribute 10% and the government contributes 14% of your Basic Pay plus DA into your NPS Tier-I account, where it is invested and grows until retirement. Use this calculator to estimate your corpus at retirement, how much you can withdraw as a tax-free lump sum, and the monthly pension your annuity purchase would pay.
NPS Tier I vs Tier II
Every NPS subscriber starts with a Tier I account, the primary retirement account this calculator estimates. It is locked in until age 60 and carries the main tax benefits: deduction up to ₹1.5 lakh under Section 80C and an additional ₹50,000 under Section 80CCD(1B). Tier II is a separate, voluntary savings account you can open on top of Tier I. It has no lock-in and funds can be withdrawn anytime, like a regular investment account, but it does not carry the same tax benefits for most subscribers. The one exception is central government employees, who can claim an 80C deduction on Tier II contributions if those specific contributions stay locked in for 3 years.
Formula
Monthly Contribution = (Basic + DA) × (10% + 14%)
Corpus = Monthly Contribution × [((1+r)^n − 1) ÷ r] × (1+r)
Where r is the monthly expected return rate and n is the number of months to retirement (future value of a growing monthly annuity). At least 40% of the corpus must be used to buy an annuity; the rest can be withdrawn as a tax-free lump sum.
Worked Examples
Example 1: Basic pay ₹56,100, DA 58%, 25 years to retirement, 10% expected return, 40% annuity purchase
Total monthly contribution = ₹21,273. Projected corpus = 284.6L. Tax-free lump sum = ₹1,70,76,661. Estimated monthly pension = ₹56,922.
Example 2: Basic pay ₹35,400, DA 58%, 30 years to retirement, 9% expected return, 50% annuity purchase
Total monthly contribution = ₹13,424. Projected corpus = 247.6L. Tax-free lump sum = ₹1,23,79,815. Estimated monthly pension = ₹61,899.
Annuity Providers and How the Annuity Rate Is Set
The annuity portion of your NPS corpus is not managed by the government directly. At retirement, you choose from a panel of insurance companies empanelled by the Pension Fund Regulatory and Development Authority (PFRDA) as Annuity Service Providers, and that provider pays your monthly pension for life in exchange for your annuity corpus. The rate offered varies by provider and depends on the type of annuity chosen (single life, joint life with spouse, with or without return of purchase price), your age at retirement, the size of the corpus, and prevailing long-term interest rates, which is why this calculator lets you adjust the annuity rate assumption rather than using one fixed figure.
Enter Your Details
Min 40% corpus must be used to purchase annuity
Estimated Monthly Pension
₹56,922/month
Total Corpus
284.6L
* Projections are indicative. Actual NPS returns depend on market performance of chosen fund. Govt contribution is 14% of Basic+DA since April 2019.
NPS Withdrawal Rules Explained
Exit rules differ by how much corpus you have and when you exit. For government employees retiring at 60 with a corpus of ₹5 lakh or more, at least 40% must be used to buy an annuity and the rest can be withdrawn as a tax-free lump sum, the same 40% minimum used as the default above. If the total corpus is below ₹5 lakh, the entire amount can be withdrawn without buying an annuity. Exiting before 60 (premature exit) has stricter rules: after a minimum of 5 years in NPS, at least 80% of the corpus must go toward an annuity unless the total corpus is ₹2.5 lakh or less, in which case full withdrawal is allowed. Partial withdrawals of up to 25% of your own contributions are separately allowed after 3 years, for specific needs like housing, education, or medical treatment, capped at three withdrawals over your NPS tenure.
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Frequently Asked Questions
Employee contributes 10% and the Government contributes 14% of (Basic Pay + DA) every month to NPS. Both contributions go into the NPS Tier-I account.
Partial withdrawals (up to 25% of own contributions) are allowed after 3 years for specific purposes like housing, education, medical treatment, and disability. Full withdrawal is allowed only at age 60.
At retirement, you must use at least 40% of the corpus to buy an annuity. Monthly pension depends on corpus size, annuity purchase %, and annuity rate (typically 5-7% p.a.).
OPS guarantees 50% of last basic pay as pension with DA; it is more predictable. NPS is market-linked so returns can be higher but are not guaranteed. Employees who joined before January 1, 2004 are under OPS.
This calculator projects your NPS corpus and pension on their own. If you want to see how that compares side by side against the assured pension under the Unified Pension Scheme (UPS), use the dedicated UPS vs NPS comparison tool linked below.