How NPS pays out
At 60 you can withdraw up to 60% of the corpus tax-free as a lump sum; the remaining 40% must buy an annuity that pays a monthly pension. This calculator compounds your monthly contributions to 60, then splits the corpus 60/40 and estimates the pension from your assumed annuity rate.
Why contribution and age drive everything
Because the money compounds until 60, starting younger or contributing a little more has an outsized effect on the final corpus. Raising the expected return assumption also helps, but keep it realistic — NPS returns depend on your chosen equity/debt mix.
Frequently asked questions
How much of NPS can I withdraw at 60?
Up to 60% as a tax-free lump sum; at least 40% must be used to buy an annuity for your pension.
What annuity rate should I use?
Annuity rates are often around 6%, but they vary by provider and plan — try a range to see the effect on the pension.
Is the pension taxable?
The monthly annuity pension is taxable as income in the year you receive it. The 60% lump sum is currently tax-free.
Related tools
This tool gives estimates for general information only and is not financial advice. Confirm exact figures with your bank, lender or a qualified advisor.