NPS Calculator

Calculate your National Pension Scheme corpus and monthly pension

NPS Details

Minimum: ₹500/month

Minimum exit age: 60 years

Typical NPS returns: 9-12% (equity heavy)

Minimum 40% must be used to purchase annuity

Current annuity rates: 5-7% per annum

Maturity Corpus

₹0

Total Invested:₹0
Wealth Gained:₹0
Investment Period:30 Years

Monthly Pension

₹0

Annuity Amount:₹0
Lump Sum (Tax-free):₹0
Annual Pension:₹0

Withdrawal Breakdown

Maturity Corpus₹0
Lump Sum Withdrawal (60%)₹0
Annuity Purchase (40%)₹0
Monthly Pension₹0
Annual Tax Benefit₹0

Investment Summary

Monthly Investment₹5,000
Annual Investment₹60,000
Total Returns0%
Tax Saved (30% bracket)₹0/year

Corpus Breakdown

Investment0%
Returns0%

Year-by-Year Accumulation

YearAgeInvestedCorpus ValueReturns
131₹60,000₹63,351₹3,351
232₹1,20,000₹1,33,337₹13,337
333₹1,80,000₹2,10,650₹30,650
434₹2,40,000₹2,96,059₹56,059
535₹3,00,000₹3,90,412₹90,412
636₹3,60,000₹4,94,645₹1,34,645
737₹4,20,000₹6,09,792₹1,89,792
838₹4,80,000₹7,36,996₹2,56,996
939₹5,40,000₹8,77,521₹3,37,521
1040₹6,00,000₹10,32,760₹4,32,760
1141₹6,60,000₹12,04,255₹5,44,255
1242₹7,20,000₹13,93,708₹6,73,708
1343₹7,80,000₹16,02,998₹8,22,998
1444₹8,40,000₹18,34,205₹9,94,205
1545₹9,00,000₹20,89,621₹11,89,621

Showing first 15 years only

Annuity Options Comparison

Compare different annuity purchase options and their impact on monthly pension

40%
Annuity
Lump Sum:₹0
Annuity:₹0
Pension:₹0
50%
Annuity
Lump Sum:₹0
Annuity:₹0
Pension:₹0
60%
Annuity
Lump Sum:₹0
Annuity:₹0
Pension:₹0
75%
Annuity
Lump Sum:₹0
Annuity:₹0
Pension:₹0
100%
Annuity
Lump Sum:₹0
Annuity:₹0
Pension:₹0

About NPS (National Pension Scheme)

What is NPS?

National Pension Scheme (NPS) is a government-backed retirement savings scheme designed to enable systematic savings during the working life of subscribers. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and provides flexibility in investment choices and attractive tax benefits under sections 80CCD(1), 80CCD(1B), and 80CCD(2).

Key Features of NPS

  • Low cost retirement savings scheme - one of the lowest expense ratios
  • Flexible investment options - Equity (E), Corporate Bonds (C), Government Securities (G)
  • Portable across jobs and locations - single PRAN (Permanent Retirement Account Number)
  • Market-linked returns with professional fund management
  • Tax benefits up to ₹2 lakh per year
  • Regulated by PFRDA ensuring transparency and safety
  • Choice of pension fund managers and asset allocation

NPS Tax Benefits

Section 80CCD(1): Up to ₹1.5 lakh deduction under overall 80C limit
Section 80CCD(1B): Additional ₹50,000 deduction exclusively for NPS
Section 80CCD(2): Employer contribution up to 10% of basic salary (no upper limit)

Total potential deduction: ₹2 lakh (Self) + Employer contribution

Withdrawal Rules

  • Normal Exit (Age 60+):
    • • Minimum 40% must be used to purchase annuity (generates monthly pension)
    • • Up to 60% can be withdrawn as lump sum (tax-free)
    • • Can defer withdrawal up to age 75
  • Premature Exit (Before 60):
    • • Allowed after 3 years of account opening
    • • 80% must be used for annuity purchase
    • • Only 20% can be withdrawn as lump sum
  • Partial Withdrawals:
    • • Allowed after 3 years for specific purposes (education, marriage, medical, house)
    • • Maximum 25% of contribution can be withdrawn
    • • Limited to 3 times during tenure

Investment Options

Auto Choice (Life Cycle Fund):

Automatically adjusts equity-debt ratio based on age. Suitable for those who prefer hands-off approach.

Active Choice:

Manually choose allocation across Equity (E), Corporate Bonds (C), and Government Securities (G). Maximum 75% in equity.

Who Should Invest in NPS?

  • Individuals looking for long-term retirement planning
  • Those wanting additional tax deduction beyond ₹1.5L under 80C
  • Salaried employees (can get employer contribution)
  • Self-employed professionals and business owners
  • Those comfortable with market-linked returns
  • People seeking low-cost investment options

NPS vs Other Retirement Options

FeatureNPSEPFPPF
ReturnsMarket-linked (9-12%)Fixed (8-8.5%)Fixed (7-7.5%)
Tax BenefitUp to ₹2L₹1.5L₹1.5L
LiquidityLow (locked till 60)MediumMedium
Maturity60% taxableTax-freeTax-free

💰 Pro Tips

  • • Start early to maximize the power of compounding
  • • Utilize the additional ₹50K deduction under 80CCD(1B)
  • • Choose higher equity allocation if you're young (more growth potential)
  • • Gradually shift to debt as you approach retirement
  • • Consider NPS in addition to EPF/PPF, not as replacement
  • • Review and rebalance your portfolio annually
  • • Stay invested till 60 for maximum tax-free withdrawal benefit