Enter your current basic pay, DA, years to retirement, return assumption, annuity rate, and annuity percentage.
Table of Contents
Jump to the calculator, rules, and contribution specifics.
How This NPS Pension Calculator Works
This page helps central government employees estimate long-term NPS outcomes from current pay inputs. Enter your current basic pay, DA amount, expected years to retirement, estimated annual return, annuity rate, and the share of corpus you want to convert into annuity.
The calculator combines employee and government contributions, projects the retirement corpus with compound growth, and then splits the result into lump sum and annuity-based pension outcomes. If you still need to estimate your current salary inputs first, start with the 7th CPC Salary Calculator or browse the main calculator hub.
Click Calculate NPS Pension to project your total corpus, lump sum amount, annuity allocation, and expected monthly pension.
Use the estimate as a planning baseline, then verify retirement and tax treatment with official NPS rules and your financial planning assumptions.
Current 2026 NPS Assumptions Used
Contribution Split
The calculator uses a 10% employee contribution on Basic Pay plus DA, along with a 14% government contribution for eligible central government employees under NPS.
Salary Inputs
Basic pay and DA are treated as the core contribution base. If you need to estimate those first, use the 7th CPC Salary Calculator and the DA Calculator.
Return Projection
The projected corpus depends heavily on the annual return assumption you choose. The tool treats this as a planning estimate, not a guaranteed investment return.
Annuity Share
You can model different annuity percentages, but the calculator still reflects the normal retirement logic where part of the corpus moves into annuity and part may remain available as a lump sum.
Tax Context
The pension generated through annuity should be reviewed alongside your expected retirement-tax position. Use the Tax Calculator when you want to connect pension planning with tax planning.
What Is Not Included
Fund-manager variation, actual asset allocation, partial withdrawals, policy changes, and real market performance are outside the scope of this quick retirement estimate.
NPS Contribution Formula
Monthly Contribution Logic
Monthly Input = (Basic Pay + DA) × 24%
This 24% is the sum of the mandatory 10% deduction from your salary, alongside the 14% matching contribution provided by the Government of India.
Tax Position Around NPS
| Tax Benefit | Section | Limit |
|---|---|---|
| Mandatory Employee Contribution | 80CCD(1) | Falls under the overall ₹1.5 Lakh 80C limit |
| Additional Voluntary Contribution | 80CCD(1B) | Extra ₹50,000 deduction (Old Tax Regime only) |
| Lump Sum Withdrawal at 60 | 10(12A) | 60% of total corpus is completely tax-free |
If you are comparing current salary, tax, and retirement together, move between the 7th CPC Salary Calculator, the Tax Calculator, and this NPS page instead of planning each figure in isolation.
Retirement Withdrawal and Annuity Rules
At retirement, your NPS outcome is shaped by how much corpus you direct into annuity and the annuity rate you use for planning. The exact product you choose later can materially change the actual pension amount, which is why this section is best treated as decision support rather than a final promise of payout.
Life Annuity without Return of Purchase Price
Yields the highest monthly pension in many cases. Pension is paid for your lifetime, but the principal annuity corpus is not returned to nominees after death.
Life Annuity with Return of Purchase Price
Usually gives a lower monthly pension than the first option, but the principal annuity amount is generally passed to the nominee after death.
For a broader retirement picture, compare this projection with the Gratuity Calculator and the Leave Encashment Calculator so you can plan retirement value beyond NPS alone.
Frequently Asked Questions
Common questions about NPS corpus growth, annuity rules, and retirement planning.
How is the NPS contribution calculated for government employees?
For central government employees covered under NPS, the employee contribution is generally 10% of Basic Pay plus DA, while the government contributes 14% on the same base. This calculator combines both to estimate the monthly investment going into your retirement corpus.
How much of the NPS corpus is usually used for annuity?
At normal retirement, at least 40% of the corpus is generally moved into annuity, while the balance may be available for lump sum withdrawal subject to the applicable rules at that time. This page lets you model higher annuity percentages as well if you want to estimate a larger pension stream.
Is the full NPS withdrawal tax-free at retirement?
No. The lump sum and annuity portions are treated differently. The annuity-based pension is generally taxable, which is why it helps to review the pension estimate together with the Tax Calculator.
Are additional NPS contributions deductible under the new tax regime?
The tax treatment depends on the section involved. The additional employee-side deduction under Section 80CCD(1B) is not generally used the same way under the new regime, while the employer contribution under Section 80CCD(2) remains an important part of NPS tax planning.
Should I calculate salary before using the NPS calculator?
Yes, if your current Basic Pay and DA are not finalized. Start with the 7th CPC Salary Calculator, then return here once you know the salary inputs that drive your NPS contribution base.
References
| Source | What to verify | Link |
|---|---|---|
| PFRDA / NPS resources | Current NPS structure, withdrawal rules, and general retirement guidance. | View source |
| Department of Expenditure orders | Pay-related rules affecting Basic Pay and DA assumptions used for NPS contribution estimation. | View source |
| Income Tax Department | Tax treatment around pension, deductions, and retirement-planning considerations. | View source |