NPS Calculator

Calculate your NPS corpus, lump sum amount and estimated monthly pension at retirement.

₹

Amount you contribute to NPS every month

%

Expected annual return on NPS investment

yrs

Number of years until retirement

%

Minimum 40% must be used to buy annuity (PFRDA rule)

%

Expected annual return from annuity plan

Total Corpus

₹66,89,451.74

Lump Sum Amount

₹40,13,671.04

Annuity Amount

₹26,75,780.70

Monthly Pension

₹13,378.90

Total Invested vs Returns

  • Total Invested
  • Returns Earned

Formula

Corpus = P × ({[1 + i]^n – 1} / i) × (1 + i)

  • P — Monthly contribution amount
  • i — Monthly rate of return (annual rate ÷ 12 ÷ 100)
  • n — Total months (years × 12)
  • Annuity — Corpus × annuity percentage / 100
  • Monthly Pension — Annuity amount × annuity rate / 100 ÷ 12

What is NPS (National Pension System)?

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme launched by the Government of India in 2004. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). NPS is open to all Indian citizens between 18 and 70 years of age and offers market-linked returns through investments in equity, corporate bonds, and government securities.

NPS accounts are of two types — Tier 1 and Tier 2. Tier 1 is the mandatory pension account with tax benefits and withdrawal restrictions. Tier 2 is a voluntary savings account with no tax benefits but complete withdrawal flexibility. For retirement planning purposes, Tier 1 is the primary account most investors focus on.

NPS Tax Benefits

NPS offers excellent tax benefits making it one of the most tax-efficient retirement instruments in India. Contributions up to Rs. 1.5 lakh are eligible for deduction under Section 80CCD(1), within the overall 80C limit. An additional exclusive deduction of Rs. 50,000 is available under Section 80CCD(1B) over and above the 80C limit — making the total potential deduction Rs. 2 lakh per year. Employer contributions up to 10% of salary are also deductible under Section 80CCD(2).

NPS Withdrawal Rules

At retirement (age 60), you can withdraw a maximum of 60% of the corpus as a lump sum — this amount is completely tax-free. The remaining minimum 40% must be used to purchase an annuity plan from a PFRDA-approved insurance company, which provides a regular monthly pension. Our NPS calculator lets you adjust the annuity percentage and expected annuity rate to estimate your monthly pension accurately.

NPS is particularly beneficial for self-employed individuals and those in the private sector who do not have access to EPF or other employer-sponsored pension plans. The combination of market-linked growth during the accumulation phase and guaranteed annuity income during retirement makes NPS a powerful tool for long-term retirement planning in India.