Plan your NPS retirement corpus

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Project your National Pension System corpus, lumpsum withdrawal, and monthly pension at retirement based on your contributions.

NPS Compliant Live Calculation Visual Breakdown

Your NPS details

NPS rules: at retirement, 60% is tax-free lumpsum; min 40% must purchase an annuity.

Monthly contribution

Age

Current

Retirement

Expected return (% p.a.)

Annuity at retirement

% for annuity

Annuity rate %

Total corpus at retirement

₹1.13 Cr

At age 60 after 30 years of contributions

Total invested₹18.00 L

Wealth gain₹94.65 L

Lumpsum (tax-free)₹67.79 L (60%)

Annuity corpus₹45.20 L (40%)

Monthly pension₹22,599 / mo

How NPS is calculated

NPS grows like a SIP until retirement. At retirement, at least 40% must be used to buy an annuity that pays monthly pension; up to 60% can be withdrawn tax-free.

01
Accumulate
Monthly contributions grow at the chosen asset allocation's blended return rate (Equity/Corp/Govt mix).
```
FV = M × ((1+r)^n − 1) ÷ r × (1+r)
```
02
Split at 60
At age 60: up to 60% can be withdrawn tax-free. Minimum 40% goes to annuity purchase.
```
lumpsum = FV × 0.60
annuity_corpus = FV × 0.40
```
03
Pension
Annuity provider pays monthly pension based on the annuity rate.
```
pension = annuity_corpus × rate ÷ 12
```

FormulaCorpus = M × ((1+r)^n − 1) ÷ r × (1+r); Pension = (corpus × annuityPct) × annuityRate ÷ 12NPS Tier I has a 60% tax-free withdrawal cap and minimum 40% annuity purchase rule.

Why we use this formula by default.
Indian payroll convention, statutory references, and the SaaS tooling that runs payroll all converge on this approach. Below are the authoritative sources we cross-checked.

Regulator

PFRDA

Pension Fund Regulatory and Development Authority — NPS regulator.

Official Body

NPS Trust

Official trustee body managing NPS subscriber accounts.

Portal

eNPS Portal

Official subscriber portal for NPS contributions and updates.

Recordkeeping

NPS CRA (NSDL / Karvy)

Central Recordkeeping Agencies for NPS account management.

Tax Reference

ClearTax — NPS 80CCD(1B)

Tax deduction rules including extra ₹50K under 80CCD(1B).

Payroll SaaS

RazorpayX NPS Integration

Employer NPS contribution via payroll under 80CCD(2).

FAQs about NPS

What tax benefits does NPS offer?

NPS contributions qualify for 80C (up to ₹1.5L total) + additional ₹50K under 80CCD(1B) — total ₹2L. Employer NPS contributions up to 10% of basic+DA also qualify under 80CCD(2). At retirement, 60% lumpsum is fully tax-free.

What is the minimum NPS contribution?

Tier I: ₹500 per contribution, ₹1,000 per year minimum. Tier II: ₹250 minimum. No upper cap. You can contribute via monthly, quarterly, or annual modes.

Can I withdraw from NPS before 60?

Partial withdrawal (up to 25% of own contribution) allowed after 3 years for specific reasons (housing, medical, education, marriage). Premature exit before 60 forces 80% annuity purchase, only 20% lumpsum.

What return rate does NPS deliver?

Historical Tier I returns: Equity (E) 10-12% over 10 years, Corporate bonds (C) 9-10%, Government bonds (G) 8-9%. Default lifecycle fund (LC50) gives blended ~10% over long term.

NPS vs EPF — which is better?

EPF: 8.25% guaranteed, fully tax-free at withdrawal. NPS: market-linked (8-12%), 40% mandatory annuity. For most salaried employees, both are useful — EPF for stability, NPS for tax-saving + higher equity exposure.

Is the annuity rate fixed?

No — it depends on the annuity provider you pick at retirement (LIC, HDFC Life, etc.) and the annuity type (lifetime, with return of corpus, joint life, etc.). Current rates: 5.5-7.5%. Compare across providers at retirement.

Can I change my asset allocation?

Yes. Tier I subscribers can change asset allocation up to 4 times per year (Active Choice). Or pick Auto Choice (LC25 / LC50 / LC75) that auto-rebalances by age.

What happens to NPS after death?

Nominees receive 100% of the corpus as lumpsum (no annuity purchase forced). Spouses can opt to continue the NPS account in their own name.

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Plan your NPS retirement corpus

Your NPS details

How NPS is calculated

Accumulate

Split at 60

Pension

PFRDA

NPS Trust

eNPS Portal

NPS CRA (NSDL / Karvy)

ClearTax — NPS 80CCD(1B)

RazorpayX NPS Integration

FAQs about NPS

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