NPS Calculator
Calculate NPS corpus and monthly pension at retirement
NPS Details
Minimum 40% must be used to purchase annuity (PFRDA regulation).
Enter NPS details and click Calculate
Corpus at Retirement
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Total Invested
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Wealth Gained
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Lump Sum Withdrawal
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Annuity Purchase Amount
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Estimated Monthly Pension
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Invested vs Returns
Invested
Returns
How to Use
- Enter your Current Age and Retirement Age (default 60).
- Enter your Monthly Contribution (your NPS contribution, not employer's).
- Set Expected Annual Return (NPS Tier-I equity funds have historically returned 10–12%).
- Set Annuity Rate (the pension rate paid by the annuity provider — typically 5–7%) and Annuity Purchase % (minimum 40% by law).
- Click Calculate to see the corpus at retirement, lump sum amount, and estimated monthly pension.
What is NPS?
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority). Contributions grow in market-linked instruments and at retirement, a minimum 40% of the corpus must be used to purchase an annuity (pension); the remaining 60% can be withdrawn tax-free.
NPS Tax Benefits
| Section | Benefit | Limit |
|---|---|---|
| 80CCD(1) | Employee/self contribution (within 80C limit) | 10% of salary or ₹1.5L |
| 80CCD(1B) | Additional self contribution (over and above 80C) | ₹50,000 extra |
| 80CCD(2) | Employer's contribution | Up to 10% of salary (no max ₹ limit) |
NPS at Retirement
- Lump sum withdrawal: Up to 60% of corpus — completely tax-free.
- Annuity purchase: Minimum 40% must be used to buy an annuity from an IRDA-registered insurer. Annuity income is taxable as salary.
- Monthly pension: Depends on annuity amount and the annuity rate offered at the time of retirement.
NPS vs EPF vs PPF
| Feature | NPS | EPF | PPF |
|---|---|---|---|
| Returns | Market-linked (~10-12%) | Fixed (8.25%) | Fixed (7.1%) |
| Risk | Medium (equity exposure) | Low | Low |
| Lock-in | Till retirement (60) | Till retirement (58) | 15 years |
| Tax at maturity | 60% tax-free | Fully tax-free (5+ years) | Fully tax-free |
Frequently Asked Questions
NPS is one of the best retirement investment options for Indians — combining tax efficiency, market-linked returns, and guaranteed pension. Key advantages: additional ₹50,000 deduction under 80CCD(1B) over and above the ₹1.5L 80C limit (saves ₹15,000+ in taxes for those in 30% bracket), 60% lump sum withdrawal is completely tax-free, and fund management charges are among the lowest in India (0.01–0.09% p.a.). Downside: 40% must go into annuity (which is taxable as income) and locked until age 60.
NPS Tier-I returns depend on the asset allocation you choose. Equity (E) funds: 10–13% CAGR over 10 years. Government Bonds (G): 7–9%. Corporate Bonds (C): 8–10%. Alternative Assets (A): varies. The auto-choice lifecycle fund reduces equity exposure as you age. Most financial advisors recommend 75% equity allocation for those under 45 for maximum growth.
Partial withdrawals are allowed after 3 years for specific purposes: higher education, marriage, house purchase, critical illness treatment, and disability. Maximum partial withdrawal: 25% of your own contributions (not employer's). Total withdrawals limited to 3 times over the entire NPS tenure. For early exit (before 60) with corpus below ₹5L: full withdrawal allowed. Above ₹5L: 80% must go to annuity.
NPS is fully portable. Your PRAN (Permanent Retirement Account Number) stays the same regardless of employer changes. Your new employer can contribute to the same PRAN. If your new employer doesn't offer NPS, you can continue as a self-contributing individual subscriber. This portability makes NPS far more flexible than EPF for job-switchers.