NPS Calculator

Where Your Money Actually Goes

A Tier I account splits contributions across four asset classes: E (equity), C (corporate bonds), G (government securities) and A (alternatives). Under Auto Choice the equity share tapers down automatically as you age; under Active Choice you set it yourself, with equity capped at 75% until 50 and stepping down after that. Your blended return is a weighted average of these, so a young Auto Choice subscriber and a G-heavy one can end up with very different corpora from identical contributions.

The 40% Annuity Rule and Exit Options

• Exit at 60 or later: up to 60% as a lump sum, at least 40% must buy an annuity.
• Premature exit before 60: only 20% as a lump sum, at least 80% annuitised.
• Small corpus: if the balance is at or below the threshold, the whole amount can be withdrawn and no annuity is bought.
• Deferral: you may keep contributing to 75, or defer the lump sum and take it later.

Tax Treatment End to End

Under the old regime your own contributions count within the 1.5 lakh Section 80C ceiling under 80CCD(1), and Section 80CCD(1B) adds an exclusive further deduction — 50,000 by default here. Employer contributions are deductible separately under 80CCD(2), which survives in the new regime too. Growth inside the account is untaxed, and the lump sum at exit is exempt under Section 10(12A). The annuity pension, however, is taxed as ordinary income every year you receive it, so the exit is only partly tax free.

What This Estimate Cannot Tell You

• Annuity rates move. The pension you get depends on the quote available on the day you exit and on the variant you pick — a joint-life or return-of-purchase-price annuity pays noticeably less than a simple life annuity.
• Inflation is not applied. A pension that looks generous in nominal rupees buys far less after 25 years of price rises.
• Returns are not guaranteed. A single average rate hides the sequence of good and bad years that actually determines your balance.