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NPS Calculator

Calculate your NPS corpus and pension at retirement.

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years
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Results

Total NPS Corpus₹66.89 L
Total Invested₹15.00 L
Lumpsum Withdrawal₹40.14 L
Est. Monthly Pension₹13,379
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What is NPS?

NPS (National Pension System) is a voluntary, government-regulated retirement savings scheme managed by PFRDA (Pension Fund Regulatory and Development Authority). Launched in 2004 for government employees and opened to all citizens in 2009, NPS has grown to over 1.5 Crore subscribers with AUM exceeding ₹10 Lakh Crores.

What makes NPS unique is that it invests your contributions in a market-linked portfolio of equity, corporate bonds, and government securities — unlike EPF and PPF which offer fixed guaranteed returns. This means NPS has the potential for higher returns (historically 9-12% depending on asset allocation) but with some market risk.

The biggest draw of NPS is its exceptional tax benefits — the most generous of any investment in India. Under the Old Tax Regime: ₹1.5 Lakh under Section 80C + ₹50,000 extra under Section 80CCD(1B) = total ₹2 Lakh deduction. Under the New Tax Regime: employer contribution under 80CCD(2) up to 14% of salary (no upper limit!) + ₹50,000 self-contribution under 80CCD(1B). For someone in the 30% tax bracket, NPS can save ₹15,600 more in tax than any other Section 80C investment.

At retirement (age 60), you can withdraw 60% of the corpus as a tax-free lump sum and must use the remaining 40% to purchase an annuity (monthly pension) from an insurance company. If the total corpus is below ₹5 Lakhs, you can withdraw the entire amount.

NPS offers two account types: Tier 1 (retirement account, mandatory, lock-in until 60) and Tier 2 (savings account, no lock-in, no tax benefits). Within Tier 1, you can choose Active Choice (manage your own equity/debt/government allocation) or Auto Choice (lifecycle fund that automatically reduces equity as you age).

For a comprehensive retirement plan, combine NPS with our EPF Calculator (employer-matched savings) and SIP Calculator (additional market investments).

Formula

NPS corpus uses the future value of annuity formula (same as SIP):

FV = P × [((1 + r)^n − 1) / r] × (1 + r)

At retirement, the corpus is split: - Lumpsum (tax-free) = Corpus × (100% − Annuity%) - Annuity Amount = Corpus × Annuity% - Monthly Pension ≈ Annuity Amount × 6% / 12 (assuming 6% annuity rate)

Worked Example — ₹10,000/month at 10% return for 25 years: - Total Corpus ≈ ₹1,33,02,361 - Total Invested: ₹30,00,000 - Lumpsum withdrawal (60%): ₹79,81,417 (tax-free) - Annuity purchase (40%): ₹53,20,944 - Estimated monthly pension: ₹26,605 (at 6% annuity rate)

NPS corpus at different contributions (10% return, 25 years): - ₹5,000/month → ₹66.5 Lakhs | Pension ₹13,300 - ₹10,000/month → ₹1.33 Crores | Pension ₹26,600 - ₹25,000/month → ₹3.33 Crores | Pension ₹66,500 - ₹50,000/month → ₹6.65 Crores | Pension ₹1,33,000

How to use this NPS Calculator?

1. Enter Monthly Contribution: Choose based on your budget. Even ₹1,000/month makes a difference over 25-30 years. Maximum ₹50,000/month is a reasonable limit for most people.

2. Set Expected Return: Based on your NPS asset allocation. Conservative (mostly G/C): 7-8%. Balanced (mix): 9-10%. Aggressive (mostly E tier, 75% equity): 10-12%. 10% is a reasonable long-term estimate for balanced allocation.

3. Years to Retirement: How many years until you turn 60.

4. Annuity Percentage: Minimum 40% is mandatory. Higher annuity means higher monthly pension but lower lumpsum. If your total corpus is below ₹5 Lakhs, you can withdraw everything.

5. Read Results: See total corpus, lumpsum withdrawal, and estimated monthly pension.

Pro tip: Start NPS early. ₹5,000/month from age 25 to 60 (35 years) at 10% creates ₹1.9 Crores. Starting at 35 (25 years) creates only ₹66.5 Lakhs — that 10-year head start triples your corpus.

Frequently asked questions

What are the tax benefits of NPS?
NPS offers the highest tax deductions: (1) ₹1.5L under 80C (shared with PPF, ELSS etc.), (2) Additional ₹50,000 exclusive to NPS under 80CCD(1B), (3) Employer contribution up to 14% of salary under 80CCD(2) — no upper limit, available in both Old and New Regime. At retirement, 60% lump sum withdrawal is tax-free.
Can I withdraw NPS before 60?
Premature exit after 5 years: 20% lumpsum (taxable) + 80% mandatory annuity. Partial withdrawal: allowed after 3 years for specific purposes (education, medical, home purchase) up to 25% of self-contributions, max 3 times in lifetime. At 60: 60% lumpsum (tax-free) + 40% annuity.
Which NPS fund and allocation should I choose?
Age 25-35: Aggressive — 75% Equity (E), 15% Corporate Bond (C), 10% Govt Securities (G). Age 35-45: Moderate — 50% E, 30% C, 20% G. Age 45-55: Conservative — 25% E, 40% C, 35% G. Age 55-60: Ultra-conservative — 10% E, 30% C, 60% G. Or simply use Auto Choice (Lifecycle Fund) which does this automatically.
NPS vs SIP — which is better for retirement?
Both serve different purposes. NPS: extra tax benefit (₹50K under 80CCD1B), lower fund management charges (0.01%), but mandatory annuity and limited liquidity. SIP: full flexibility, higher potential returns in equity, no lock-in, but no extra tax benefit. Ideal strategy: use NPS for tax savings (₹50K-1L/year) AND SIP for additional wealth building.
What is the annuity rate in NPS?
Annuity rates from insurance companies range from 5-7% currently. This means a ₹1 Crore annuity purchase gives approximately ₹5,000-7,000 monthly pension. Rates depend on: annuity provider (LIC, SBI Life, HDFC Life etc.), type of annuity (single life, joint life, with return of purchase price), and age at retirement.
How to open an NPS account?
Online: Through eNPS portal (enps.nsdl.com) with Aadhaar and PAN. Takes 15 minutes. Offline: Visit any Point of Presence (POP) — most major banks are POPs. Minimum contribution: ₹500/month or ₹6,000/year for Tier 1. Your employer can also open it through the corporate NPS model.
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