How much of the NPS corpus can I withdraw as a lumpsum?

At exit (age 60), the assumption used here is that 60% of the corpus is taken as a tax-free lumpsum and the remaining 40% is compulsorily used to buy an annuity that pays a pension. This calculator splits the projected corpus 60/40 on that basis.

What return should I assume for NPS?

NPS returns depend on your equity/debt allocation and are not guaranteed. Many people model a long-run blended return in the high single digits to low double digits. Enter your own expected annual return — the calculator uses exactly what you provide.

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Q: How is the NPS corpus calculated?

NPS contributions are treated as a monthly SIP. The future value is PMT × (((1+i)^m − 1) / i) × (1+i), where i is the monthly return (annual return ÷ 1200) and m is the number of months from your current age to retirement at 60. This compounds every monthly contribution to the retirement date.

Project your National Pension System corpus from monthly contributions and expected return — with the 60% lumpsum / 40% annuity split at age 60.

Your NPS plan

Monthly contribution (₹)

₹

Expected annual return (%)

Current age (years)

Retirement age (years)

At retirement

Projected corpus

₹0

0 years of monthly contributions

Total invested₹0

Wealth gained (returns)₹0

Projected corpus₹0

Lumpsum at exit (60%)₹0

Annuitised (40%)₹0

Assumption: at exit, 60% taken as lumpsum and 40% compulsorily annuitised to fund a pension.

How it's calculated

Your NPS contributions are modelled as a monthly SIP that compounds until retirement. The future value of all those contributions is:

FV = PMT × ( ((1 + i)^m − 1) / i ) × (1 + i)

where PMT is your monthly contribution, i is the monthly return rate (annual return ÷ 1200), and m is the number of months from your current age to the retirement age. The trailing × (1 + i) reflects contributions made at the start of each month (annuity-due), so each instalment earns one extra month of growth.

Worked example: ₹10,000 a month, 10% expected return, from age 30 to 60. Then i = 10 ÷ 1200 = 0.008333, m = 360 months. FV ≈ ₹2.28 crore. Of that, 60% (≈ ₹1.37 crore) is the lumpsum and 40% (≈ ₹91 lakh) is annuitised at exit.

This is an estimate. NPS returns are market-linked and not guaranteed, annuity rules and tax treatment can change, and the 60/40 split is the standard exit assumption used here. Enter your own expected return — no market number is hardcoded.

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FAQ

How is the NPS corpus calculated?

Contributions are compounded as a monthly SIP using FV = PMT × (((1+i)^m − 1) / i) × (1+i), with i = annual return ÷ 1200 and m the months to retirement. Every monthly contribution is grown to the retirement date and summed.

How much can I withdraw as a lumpsum?

The assumption used here is the standard exit split: 60% of the corpus as a lumpsum and 40% compulsorily annuitised to provide a pension. Your actual options depend on the prevailing NPS exit rules.

What return should I assume?

NPS returns are market-linked and depend on your equity/debt mix, so there is no single right number. Enter your own expected annual return — the calculator uses exactly what you type, nothing hardcoded.

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