Retirement
NPS Calculator
Project your NPS corpus and split it into lump sum and annuity under the PFRDA exit rules amended in December 2025 — with the tax on each portion.
Last updated 21 August 2026 · Free · No sign-up · Nothing you type leaves your browser
Your NPS account
Increase to your contribution every 12 months, e.g. matching a salary hike.
Assumptions
What the annuitised portion is contracted to pay, as a % of that amount per year.
Projected corpus at exit
₹1.88 Cr
₹10,000/month for 25 years at 10.0%, stepping up 5% a year.
Non-government, corpus above ₹12 lakh: up to 80% lump sum, minimum 20% must be annuitised (PFRDA Amendment Regulations, 2025).
Lump sum (80%)
₹1.51 Cr
Annuitised (20%)
₹37.7 L
The lump sum, after tax
Sec 10(12A) exempts only up to 60% of the corpus — not 60% of whatever you actually take as a lump sum. So when the lump sum is larger than 60% of the corpus, the excess is taxed at your slab rate.
Exempt portion
₹1.13 Cr
60% of corpus
Taxable portion
₹37.7 L
Net lump sum in hand
₹1.39 Cr
The annuitised portion
The annuitised amount buys a monthly pension, fully taxable at your slab rate every year you receive it — there is no capital-gain-style relief here, and standard annuity options do not increase with inflation.
Monthly annuity income
₹20,399/mo
After tax
₹14,280/mo
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Why most NPS calculators are out of date
PFRDA changed the NPS exit rules in December 2025, and most calculators online still show the old 60% lump sum / 40% mandatory annuity split for everyone. That rule now applies only to government-sector subscribers. Non-government subscribers — the All Citizen Model and Corporate NPS — can take up to 80% as a lump sum where the corpus exceeds ₹12 lakh, or the entire corpus where it does not.
The tax exemption did not move with it
Sec 10(12A) still exempts only 60% of the total corpus from tax, regardless of how much you are now permitted to withdraw as a lump sum. That mismatch is the single most important number this calculator surfaces: take the full 80% and a fifth of your corpus is taxed at your slab rate on the way out.
Rules this new can also be revised again with limited notice — confirm the current position with your POP (Point of Presence) or PFRDA circular before relying on this for an imminent exit. See our SWP calculator to compare the annuitised portion against a self-managed drawdown instead.
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Frequently asked questions
What changed in the NPS withdrawal rules in 2025?
PFRDA notified the Exit and Withdrawal (Amendment) Regulations, 2025 in December 2025. For non-government subscribers with a corpus above ₹12 lakh, the mandatory annuity portion fell from 40% to 20%, so up to 80% can now be taken as a lump sum. Below ₹12 lakh, the entire corpus can be withdrawn as a lump sum with no mandatory annuity. Government-sector subscribers stay on the original 60% lump sum / 40% annuity split.
Is the extra lump sum I can now withdraw tax-free?
Not automatically. Sec 10(12A) of the Income Tax Act still exempts only up to 60% of the total corpus, and that limit was not widened alongside the PFRDA change. If you take 80% as a lump sum, the 20 percentage points above the 60% exemption threshold are taxed at your slab rate — this calculator shows that split directly.
How is the annuity portion taxed?
Fully, at your income tax slab rate, in the year each payment is received — there is no capital-gains-style relief on annuity income, and no principal-versus-gain split the way there is on an SWP or mutual fund redemption.
Does the annuity payout increase over time?
Not under a standard immediate annuity. Most annuity options pay a flat amount for life, so its purchasing power falls every year to inflation. A handful of insurers offer inflation-linked options, typically at a lower starting payout — confirm the specific product before assuming otherwise.
Can I choose not to annuitise at all?
Only if your corpus is at or below the relevant threshold — currently ₹12 lakh for non-government subscribers. Above that, some annuitisation is currently mandatory. This is a regulatory minimum, not investment advice on whether an annuity suits you; compare it against a self-managed drawdown using our SWP calculator.