What will NPS pay you?
From first contribution to pension cheque
- Your corpus over your career
- How it splits at retirement
- The pension that lands each month
- Pension before tax
- ₹35,930
- no tax at this income
- In today's money
- ₹6,256
- after tax
- Lump sum after tax
- ₹1.08 Cr
- tax-free
Your NPS journey
Your inputs
Your taxOptional: old regime saves tax on your own NPS
Your own NPS saves tax only in the old regime: the first ₹50,000 a year (Section 80CCD(1B)), beyond your 80C. Employer NPS is separate.
Plans rarely run straight. Add a break, a bonus or an early stop.
Switch on to see what future amounts will buy at today's prices.
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What this means
- ₹25,119 to ₹52,734 a month if returns land between 8% and 12%.
Why?
Markets don't pay a fixed rate. The shaded fan on the chart shows how far apart good and bad years can leave you.
- ₹35,930 a month buys what ₹6,256 buys today.
Why?
Prices rise about 6% a year for 30 years before your pension starts, and keep rising after. By 85 it buys what ₹1,545 does today.
- New regime: your own NPS saves no tax on what you put in.
Why?
Only your employer's contribution does. Employer NPS up to 14% of basic is deductible in the new regime. Switch to Old to see what your own contribution saves.
- ₹39.86 L in becomes ₹1.8 Cr, 4.5× what you put in.
- Starting at 25 would lift your pension to ₹62,810/month, up 75%.
- No income tax on your pension if it is your only income.
Why?
The pension is taxed as income at slab rates. This takes it as your only income under the new regime, with slabs rising in line with prices. Up to 60% of the pot comes out tax-free.
- Check the latest PFRDA rules on how much must buy a pension.
Why?
The minimum pension share and the tax-free withdrawal limit are set by PFRDA and the Income Tax Act, and can change.
More details
Your savings, up to age 60
What happens at 60
Your pension, and what it buys
- Pension paid each month
- What it buys, in today's ₹
Most pensions stay the same for life, while prices keep rising. The filled part shows how much that shrinks.
How it's calculated
Contributions compound monthly until retirement. At retirement the corpus is split:
Lump sum = Corpus × (1 − annuity %)
Pension / month = Corpus × annuity % × annuity rate ÷ 12
Annuity rates vary by insurer and plan. 5.5–7% is a typical range today.
Tax figures follow Budget 2025 rules, for FY 2025-26 onward.