NPS Calculator 2026 – Pension & Withdrawal Rules
Calculate your retirement corpus, monthly pension, and tax savings with the latest PFRDA withdrawal rules (80% Limit) and Section 80CCD(1B) benefits.
This advanced NPS Calculator helps you estimate your total retirement corpus, monthly pension income, and potential tax benefits. It is updated for the 2026 PFRDA rules, including the specific withdrawal limits for government and private sector employees. Use this tool to compare NPS with EPF and Mutual Funds.
| Year | Age | Invested | Corpus |
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Disclaimer: Rules shown are based on publicly available PFRDA/Income Tax information (2025-26) and may change. Please verify with official notifications before making investment decisions.
What is NPS Calculator? Understanding the National Pension System
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings during your working life. Regulated by the PFRDA, it is one of the most efficient tax-saving instruments in India.
Using this calculator, you can estimate the corpus you will accumulate by the time you retire and the monthly pension you can expect based on annuity rates.
NPS Scheme Withdrawal Rules (2026 Update)
As per the PFRDA (Exits and Withdrawals) Amendment Regulations, 2025 (effective 2026), rules vary by corpus size and subscriber type:
Official source: Pension Fund Regulatory and Development Authority (PFRDA)
- Corpus ≤ ₹8 lakh: 100% lump sum withdrawal allowed (no mandatory annuity) – for both private and government subscribers.
- Corpus > ₹8 lakh to ≤ ₹12 lakh: Up to ₹6 lakh as lump sum; balance can be taken via annuity or Systematic Unit Redemption (SUR, minimum 6 years).
- Corpus > ₹12 lakh:
- Private / Corporate / All Citizens: Up to 80% lump sum (minimum 20% for annuity).
- Government: Up to 60% lump sum (minimum 40% for annuity).
Note: The calculator dynamically adjusts limits based on projected corpus and sector. Tax-free lump sum remains capped at 60% under Sec 10(12A) – extra portion may be taxable.
Taxation: EEE Status
NPS currently enjoys Exempt-Exempt-Exempt (EEE) status for the lump sum withdrawal:
- Contribution: Tax deduction up to ₹1.5L u/s 80C + ₹50,000 u/s 80CCD(1B).
- Accumulation: Returns earned are tax-free.
- Maturity: The 60% lump sum withdrawal is tax-free u/s 10(12A) as per Income Tax Department of India .
How This NPS Scheme Calculator Works (Scheme & Pension Calculation)
This NPS scheme calculator combines official withdrawal rules, expected market returns, and annuity assumptions to estimate your retirement outcome. It adapts calculations based on whether you are a government or private sector subscriber.
Frequently Asked Questions
Can I use NPS as an emergency fund?
Yes — as a “commitment device”. Many financially disciplined people treat Tier I NPS as a weapon against their own impulses. Because early exit is penalised and partial withdrawal is strictly limited, it prevents you from raiding retirement money during weak moments.
What happens if I die before age 60?
In case of death before 60, the entire corpus (100%) goes to the nominee or legal heir as a lump sum. There is no annuity requirement. NPS corpus is generally not part of the estate for probate purposes if correctly nominated.
Is it possible to get high equity returns plus a guaranteed pension?
Yes, by using a Glide Path Strategy. Keep aggressive equity allocation (up to 75%) until age 55-58 for growth, then shift to safer funds. At exit, purchase an Annuity with Return of Purchase Price.
Why is NPS considered better than EPF?
It is due to asymmetric upside. While EPF is capped at ~8.25%, equity-tilted NPS has historically delivered 11-14% over 15-20 year periods.
Can I contribute to NPS after age 60?
Yes. Under current 2026 rules, if you have not fully exited, you can continue contributing to NPS until age 75. This allows retirees to continue claiming the Section 80CCD(1B) tax deduction.
Is NPS better than EPF or PPF?
NPS offers higher long-term growth due to equity exposure, while EPF and PPF provide guaranteed returns. You can use our EPF calculator and PPF calculator to compare outcomes.
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