Rajkumar Anguluri·Software Engineer · Founder, Artha Engine·Last reviewed 13 April 2026·Methodology
Independent decision-support tool. Artha Engine is not a financial services provider, does not sell loans or insurance, and has no commission relationships with banks or insurers.
NPS Calculator
See what your NPS corpus will look like at retirement — including the mandatory annuity split and tax-free lump-sum withdrawal.
Your numbers
Project your NPS corpus at retirement with the mandatory annuity split.
Save & share this scenario
Bookmark these inputs, copy a link, or send the result to someone.
Lump-sum at retirement
₹68.4L
NPS builds a larger retirement corpus
NPS lump-sum withdrawal is ₹6.6L more than PPF maturity. NPS also provides annuity income.
NPS wins on corpus but locks 40% in annuity. Consider your liquidity needs.
NPS total corpus
₹1.1Cr
NPS lump-sum
₹68.4L
NPS annuity portion
₹45.6L
PPF maturity
₹61.8L
Total invested
₹18L
NPS corpus over time
Year-by-year NPS growth path
Benchmarks
NPS lump-sum vs PPF
+11.0%You
₹68.4L
Benchmark
₹61.8L
NPS equity allocation drives higher returns at higher risk.
NPS locks 40% in annuity at retirement
You cannot withdraw the full NPS corpus — at least 40% must be used to purchase an annuity. PPF has no such restriction.
PPF is fully tax-free (EEE)
PPF contributions get 80C deduction, interest is tax-free, and maturity is tax-free. NPS lump-sum withdrawal (up to 60%) is also tax-free, but annuity income is taxable.
Like this calculation?
Save it to your account so you can revisit it anytime, or share the scenario with someone who needs to see it.
At a glance
- What it does
- Projects your NPS corpus based on monthly contribution, expected return, and retirement age. Splits the result into annuity and lump-sum portions.
- Key output
- Total corpus, annuity portion (40-100%), lump-sum withdrawal, wealth gain over contributions.
- Indian-specific
- PFRDA mandates minimum 40% annuity purchase at retirement. Lump-sum up to 60% is tax-free.
- Best used for
- Retirement planning alongside PPF and EPF. Compare NPS equity allocation returns against guaranteed PPF.
How It Works
This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.
- Corpus = FV of SIP at monthly contribution, expected return, and months until retirement.
- Annuity corpus = corpus × annuity percentage (minimum 40%).
- Lump-sum = corpus − annuity corpus.
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- Expected return assumes equity-heavy NPS allocation. Actual returns vary by fund manager.
- Annuity percentage is clamped to PFRDA minimum of 40%.
- No tax modeled on annuity income (taxable at slab rate in retirement).
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
Is NPS better than PPF for retirement?
NPS offers potentially higher returns through equity allocation but locks 40% in annuity. PPF is fully tax-free (EEE) with guaranteed returns. The right mix depends on your risk appetite.
Can I withdraw NPS before retirement?
Partial withdrawal is allowed after 3 years for specific purposes (education, illness, home purchase). Full exit before 60 requires 80% annuity purchase.
How is NPS taxed?
Contributions get 80CCD(1B) deduction up to ₹50k. Lump-sum withdrawal up to 60% at retirement is tax-free. Annuity income is taxed at your slab rate.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
Related tools & decisions
Keep going from here — each link carries the same cluster context.
What to do next
Comparison pages
Related guides
Long-form explainers that put the math behind this tool in context.
Guide7 min
Section 80CCD(2): The Only Deduction Left in the New Tax Regime (2026)
Employer NPS contribution under Section 80CCD(2) is the only meaningful deduction that survives in the new tax regime. Budget 2024 raised the private-sector cap to 14% of basic. Here's the math, the catch, and how to ask payroll.
Guide28 min
The India Personal Finance Playbook 2026: Your First ₹1 Crore by Income, Age, and City
A complete decision tree for India in 2026: a 7-question diagnostic, income-bracket and age-decade playbooks, the 12-step sequence most people get wrong, and what changed for the new tax year. Built for the salaried Indian professional aiming for the first ₹1 crore.
Guide8 min
NPS Tax Benefit in New vs Old Regime (2026 Update)
Section 80CCD(1), 80CCD(1B)'s extra ₹50,000, and 80CCD(2) employer contribution — which NPS deductions still work in the new regime in 2026, and a worked example at ₹15 lakh salary.
Calculations and decision frameworks, not personalised financial advice. The numbers on this page are based on the inputs you supplied and the regulatory rules in effect when this page was last reviewed. They are not a recommendation to buy, sell, hold, port, or surrender any specific financial product. Consult a SEBI-registered investment advisor, a qualified tax professional, or a licensed insurance broker before acting on a financial decision involving your money.
Artha Engine is an educational decision-support website. We do not offer loans, sell insurance, distribute mutual funds, provide regulated investment advice, collect loan applications, or receive commissions from banks, insurers, AMCs, brokers, or other financial providers. References to RBI, SEBI, IRDAI, Income Tax Department, or other authorities are source citations only. Artha Engine is not affiliated with, endorsed by, or sponsored by any government authority, regulator, bank, insurer, AMC, or broker. Artha Engine does not charge users fees for using calculators, comparison tools, articles, or financial health scoring. Mailing address: India.
Methodology · Corrections · Terms · Privacy