In this article
- What the NPS calculator actually computes
- ₹5,000 a month from 30 to 60: the worked example
- Starting age matters more than the amount
- The return you assume changes everything
- Lump sum or annuity: what changed in the exit rules
- Will the pension be enough? Look at it in today’s rupees
- NPS, SIP or PPF: where it fits
- The tax angle, in one paragraph
You put in ₹5,000 a month from age 30. At 60 the account shows a number with a lot of zeros. Then comes the part nobody explains well: only some of it comes to you as cash, the rest must buy an annuity, and the monthly pension that annuity pays depends on a rate you do not control. This guide works through the real numbers so you can see what the NPS promises, what it does not, and what changed in the exit rules at the end of 2025.
What the NPS calculator actually computes
The National Pension System is a market-linked retirement account. Your monthly contribution is invested in equity, corporate bonds and government securities in a mix you choose or let an auto choice set. At retirement you withdraw part of the corpus and use the rest to buy an annuity from an insurer. The calculator does two jobs: it grows your monthly amount to a corpus, and it splits that corpus into a lump sum and an annuity pension.
₹5,000 a month from 30 to 60: the worked example
The corpus is about 6.3 times what you paid in. The pension looks small next to the corpus because an annuity pays out a modest yearly percentage of the money it takes.
Notice what the pension number is not. It is not 10 percent of the corpus. The annuity share (₹45.6 lakh) earns the annuity rate (6 percent a year here), so it pays about ₹2.74 lakh a year, or ₹22,793 a month. The lump sum is yours to invest, spend or park in a plan that pays you every month, as the SWP guide explains.
Starting age matters more than the amount
Same ₹5,000 a month, same 10 percent, same retirement at 60. Only the age you begin changes.
Starting at 25 instead of 30 adds five years and about ₹3 lakh of extra contributions, yet the corpus is ₹77 lakh bigger. The same effect is explained in the guide on starting at 25 or 35.
If you are already 40, do not read this as a reason to give up. The answer is a bigger monthly amount, a later retirement age, or both. Try ₹10,000 a month from 40 in the calculator and the corpus is about ₹76.6 lakh, which is double the ₹5,000 case.
The return you assume changes everything
Two percentage points either way moves the result by about ₹39 lakh down or ₹62 lakh up. Nobody knows the future return, so plan with the middle number and keep the low one as your safety margin.
- The NPS is not a fixed-rate scheme. Unlike the PPF or EPF, its return depends on your equity, corporate bond and government bond mix, and on the markets.
- A mix with more equity can earn more over 30 years and swings more along the way. Auto choice reduces equity as you get older.
- Use the [CAGR guide](/articles/average-return-vs-cagr-why-20-percent-is-not-what-you-earned) when you read a scheme’s “past returns”. Averages and compounded rates are different numbers.
Lump sum or annuity: what changed in the exit rules
Until recently the rule was simple: at normal exit you could withdraw at most 60 percent as cash and had to put at least 40 percent into an annuity. In December 2025 the pension regulator amended the exit rules. As reported at the time, non-government subscribers (All Citizen and Corporate models) can now take up to 80 percent as a lump sum and put a minimum of 20 percent into an annuity. Government subscribers remain at 60 percent lump sum and 40 percent annuity.
- Lump sum about ₹68.4 lakh
- Annuity money about ₹45.6 lakh
- Higher guaranteed monthly income
- Lump sum about ₹91.2 lakh
- Annuity money about ₹22.8 lakh
- More cash in your hands, half the pension
The second column is worked by hand, because the calculator’s annuity field starts at 40 percent. The pension simply halves when the annuity share halves.
| Corpus at exit | Non-government (as reported) | Government |
|---|---|---|
| Up to ₹8 lakh | Full withdrawal allowed | Full withdrawal allowed |
| ₹8 lakh to ₹12 lakh | Up to ₹6 lakh lump sum, rest as annuity or periodic redemption | Up to ₹6 lakh lump sum, rest as annuity or periodic withdrawal |
| Above ₹12 lakh | Up to 80% lump sum, at least 20% annuity | 60% lump sum, at least 40% annuity |
| Latest age to stay invested | 85 | 85 |
Summary of the December 2025 changes as reported by the regulator and platforms. Read the official PFRDA notification for your category before you decide.
Will the pension be enough? Look at it in today’s rupees
A pension of ₹22,793 in 30 years is a big number that buys much less than it sounds. If prices rise 6 percent a year, ₹22,793 then is worth about ₹3,970 in today’s money. Retirement planning has to keep this in view.
The inflation guide shows how quickly a fixed amount loses ground. The lump sum is your inflation-fighter, because you can invest it.
- Do not count on the annuity alone. Treat it as the stable base and the lump sum as the growth part.
- Add the [EPF](/articles/epf-how-your-provident-fund-grows-over-30-years), [PPF](/articles/ppf-15-years-of-1-5-lakh-a-year-what-you-end-up-with) and mutual funds to the picture. NPS is one leg.
- Step up your contribution. Raising it 10 percent a year, as in the step-up SIP guide, makes a far bigger corpus than a flat amount.
NPS, SIP or PPF: where it fits
| NPS | SIP in a mutual fund | PPF | |
|---|---|---|---|
| Return | Market-linked, mix you choose | Market-linked | Government-set, reviewed each quarter |
| Access before 60 | Limited, with conditions | Anytime (exit load may apply) | Partial after year 7, lock-in 15 years |
| At retirement | Lump sum plus annuity rules | No rules, you decide | Whole amount is yours |
| Tax help | Extra deductions on contributions | None on contribution | Deduction in the old regime |
| Best for | Forced, disciplined retirement saving | Flexible long-term goals | Safe, steady base |
Compare with the SIP calculator guide to see the same ₹5,000 a month in a mutual fund with no annuity requirement.
The tax angle, in one paragraph
NPS contributions can reduce tax in three places: your own contribution under section 80CCD(1) within the ₹1.5 lakh limit, an extra ₹50,000 under 80CCD(1B), and your employer’s contribution under 80CCD(2). The first two apply in the old regime only. The employer part is allowed up to 14 percent of basic plus DA in the new regime as well. These sections have been renumbered under the Income-tax Act, 2025 (section 124 for most of them) for tax years from 2026-27, so check the current section and limits. The old versus new regime guide shows how much those deductions are worth to you.
Questions people ask
How much pension will I get from NPS if I invest ₹5,000 a month?
From age 30 to 60 at an assumed 10 percent a year, the corpus is about ₹1.14 crore. With 40 percent put into an annuity at 6 percent, the monthly pension is about ₹22,800 and the lump sum about ₹68 lakh. These are estimates because the return and the annuity rate are not guaranteed.
NPS me 5000 per month se kitna paisa milega?
30 se 60 saal tak, 10 percent saalana return maan kar, lagbhag ₹1.14 crore ka corpus banta hai. Usme se purane niyam me 60 percent (kareeb ₹68 lakh) cash milta hai aur 40 percent se annuity khareedni padti hai jo kareeb ₹22,800 mahina pension deti hai.
How is the NPS corpus calculated?
Each monthly contribution is compounded at the monthly rate until retirement. The formula is monthly amount × ((1 + i)^n − 1) ÷ i × (1 + i), where i is the yearly return divided by 12 and n is the number of months.
What are the new NPS withdrawal rules?
As reported after the December 2025 amendment, non-government subscribers can withdraw up to 80 percent of the corpus as a lump sum and must put at least 20 percent into an annuity. Government subscribers stay at 60 percent lump sum and 40 percent annuity. Corpus up to ₹8 lakh can be withdrawn in full. Confirm details on the PFRDA website.
Why does the NPS calculator here need at least 40 percent in annuity?
The calculator follows the long-standing minimum, which still applies to government subscribers. For a 20 percent annuity, halve the pension shown for 40 percent, because the pension is proportional to the annuity share.
Is NPS better than SIP or PPF?
They do different jobs. NPS enforces discipline and gives extra tax deductions but has exit rules. A mutual fund SIP is flexible. PPF is safe and steady. Many people hold more than one.
NPS ka paisa kab nikal sakte hain?
Normal exit aam taur par 60 saal par hota hai; December 2025 ke badlav me 15 saal ki subscription ke baad bhi exit ka option bataya gaya hai, isliye PFRDA ki taza notification zaroor dekhein. Beech me kuch shartein poori karne par limited partial withdrawal mil sakta hai, jaise ghar ya ilaaj ke liye. Pura detail PFRDA ki notification me dekhein.
Is the NPS pension taxable?
Yes. The monthly pension from an annuity is added to your income and taxed at your slab. The tax treatment of the lump sum depends on the share and the current rules, so confirm it before you plan.