Our NPS Maturity Calculator projects your total National Pension System corpus at retirement, plus your tax-free lump sum withdrawal and expected monthly pension from the annuity portion.
NPS Maturity Calculator
NPS Maturity Formula
Corpus = Monthly Contribution × [((1+r)ⁿ − 1) ÷ r] × (1+r)
Where r is the monthly expected return rate and n is the total number of months until retirement. At maturity, you must use at least 40% of the corpus to buy an annuity (which pays a regular pension), and can withdraw the remaining portion as a lump sum.
NPS Withdrawal Rules at Retirement (Age 60)
| Corpus Size | Withdrawal Rule |
|---|---|
| Up to ₹5,00,000 | Full withdrawal allowed, no mandatory annuity |
| Above ₹5,00,000 | Minimum 40% must go into an annuity; up to 60% can be withdrawn as a tax-free lump sum |
NPS Tax Benefits
- Section 80CCD(1): Employee contribution up to ₹1.5 lakh (within the overall 80C limit).
- Section 80CCD(1B): Additional ₹50,000 deduction exclusively for NPS — over and above the 80C limit. (Only available under the old tax regime.)
- Section 80CCD(2): Employer’s NPS contribution (up to 10-14% of basic salary depending on employer type) is deductible separately, and remains available even under the new tax regime.
FAQs
Is the NPS lump sum withdrawal taxable?
No — up to 60% of the corpus withdrawn as a lump sum at maturity is completely tax-free.
Is the monthly pension from the annuity taxable?
Yes — the regular pension income received from the annuity is taxable as per your applicable income tax slab in the year you receive it.
Can I withdraw 100% of my NPS corpus if it’s small?
Yes — if your total corpus at retirement is ₹5,00,000 or less, you can withdraw the entire amount without being forced to buy an annuity.
What return rate should I assume for NPS?
NPS equity-heavy schemes have historically returned 9-12% annually over the long term, while debt-heavy schemes return lower, more stable returns. Use a conservative estimate (8-10%) for planning purposes.