NPS has no fixed interest rate. Your return is a blend of what equity (E), corporate bonds (C) and government securities (G) earn, in the mix you choose. This NPS return calculator lets you set that mix, or pick an Auto Choice life-cycle fund, and see the realistic blended return and corpus.
Active Choice vs Auto Choice: what changes
In Active Choice you decide the split between E, C and G (and A, alternative assets, up to 5%). In standard Active Choice equity is capped at 75%. In Auto Choice the fund moves you from equity to G-secs automatically as you age:
| Life-cycle fund | Equity up to age 35 | Equity at 55 | Suits |
|---|---|---|---|
| LC75 (Aggressive) | 75% | 15% | Young investors who can sit through volatility |
| LC50 (Moderate, default) | 50% | 10% | Most salaried investors |
| LC25 (Conservative) | 25% | 5% | Low risk appetite |
Example: the same Rs. 5,000 a month, four choices
Age 30 to 60, Rs. 5,000 a month, assumed returns of 11.5% for equity, 8.5% for corporate bonds and 8% for G-secs:
| Choice | Average blended return | Corpus at 60 |
|---|---|---|
| Active: 75% E / 15% C / 10% G throughout | about 10.9% | Rs. 1.33 crore |
| Auto LC75 | about 10.1% | Rs. 1.02 crore |
| Auto LC50 | about 9.3% | Rs. 93.0 lakh |
| Auto LC25 | about 8.9% | Rs. 85.2 lakh |
The gap between the most and least aggressive choice is about Rs. 48 lakh, on the same money invested. That is why the asset mix matters more than which pension fund you pick.
Where to find actual NPS returns
NPS Trust publishes scheme-wise returns and NAVs for every pension fund. PFRDA’s NPS PRIDE-Disha tool goes further and shows SIP-based (XIRR) returns from daily NAV data since 2008. Enter those figures here as your expected returns for a grounded projection. Our guide on NPS returns and interest rate explains how to read them.
Since October 2025, pension funds can offer additional schemes for non-government subscribers under MSF, including options with higher equity. From 1 December 2026, scheme names follow a new three-part format. See our news report.
Frequently asked questions
What is the NPS interest rate?
There is no declared interest rate. NPS returns are market-linked and vary by scheme. Long-term equity schemes have historically returned more than corporate bond and G-sec schemes, with more volatility.
Which NPS option gives the highest return?
Over long periods, higher equity has usually meant higher return. Active Choice with 75% equity or Auto LC75 suits investors with 15+ years to retirement. Past returns do not guarantee future returns.
Can government employees choose equity in NPS?
Yes, to a limited extent. Central Government subscribers can stay in the default scheme or opt for Scheme G (100% government securities), Auto Choice LC25 or Auto Choice LC50. State Government options depend on each state.
How often can I change my NPS allocation?
You can change asset allocation up to four times and the pension fund once in a financial year.