Finance · Free tool
NPS Calculator
Project your National Pension System Tier-I corpus at age 60: lump sum (up to 60%, tax-free), annuity portion (at least 40%) and the monthly pension that follows. Includes the extra ₹50,000 deduction under section 80CCD(1B).
For 80CCD(1B) saving estimate. Old regime only.
Capped at ₹50,000 deduction × your marginal rate. Old regime only.
How NPS works at maturity
When you turn 60, NPS rules require you to use at least 40% of the corpus to buy a lifelong annuity from an empanelled insurer (LIC, SBI Life, HDFC Life, ICICI Pru, Star Union). The remaining up to 60% can be withdrawn as a tax-free lump sum. If your corpus is less than ₹5 lakh, you can withdraw the entire amount.
What return rates to use
- 9–10% accumulation: realistic for the default Auto Choice (Lifecycle 50) blend.
- 11–12% accumulation: Active Choice with high equity allocation (75% equity cap).
- 5.5–7% annuity yield: what insurers currently quote for "Annuity for Life with Return of Purchase Price".
80CCD(1B) — the extra ₹50,000
Beyond the ₹1.5 lakh cap of 80C, NPS gets you an additional ₹50,000 deduction under 80CCD(1B). That's a hard ceiling — contributing more doesn't increase the deduction. At a 30% marginal rate, this saves ₹15,600/year (incl. cess). This benefit is only available under the old tax regime.