NPS Calculator

Estimate your retirement corpus and monthly pension

NPS Contribution Details

Rs

Minimum Rs 1,000/year (no monthly minimum)

Yr
Yr
%

Equity (E): 12-14% | Corporate Bond (C): 9-10% | Govt Sec (G): 8-9%

%

Typical annuity rates from insurers: 5-7%

Your NPS Retirement Estimate

Total Invested
Rs 0
Total Corpus at 60
Rs 0
0x your investment
Lump Sum (60%)
Rs 0
Tax-free withdrawal
Annuity (40%)
Rs 0
Monthly pension: Rs 0

Corpus Breakdown

0%
returns
Invested -
Returns -

Year-by-Year Growth

YearAgeInvestedCorpusReturns

Estimation only - consult a tax professional for accurate advice.

How the NPS Calculator Works

The National Pension System (NPS) is a government-sponsored retirement savings scheme. You contribute monthly, and the corpus grows with market-linked returns. At retirement, 60% can be withdrawn as a tax-free lump sum, and 40% must be used to purchase an annuity for monthly pension.

The NPS Growth Formula

NPS contributions are invested monthly, so the growth follows the same compounding logic as a SIP:

NPS Corpus Calculation
Monthly rate i = (1 + annual_rate)^(1/12) - 1
Each month: Corpus = (Previous corpus + Contribution) x (1 + i)

Tax Benefits of NPS

  • Section 80CCD(1): Up to 10% of salary (within Rs 1.5L 80C limit)
  • Section 80CCD(1B): Additional Rs 50,000 deduction (over and above 80C)
  • Section 80CCD(2): Employer contribution up to 14% of salary (Central Govt) / 10% (others) - no upper cap, over and above Rs 1.5L
  • At maturity: 60% lump sum is completely tax-free. The 40% annuity is taxable as pension income at your slab rate.

NPS Asset Classes

NPS offers four asset classes. Your returns depend on the mix you choose:

  • Equity (E): Invests in equity markets. Historical CAGR of 12-14%. Maximum allocation: 75%
  • Corporate Bonds (C): Fixed income from corporate debt. Returns around 9-10%
  • Government Securities (G): Safest option, invests in government bonds. Returns around 8-9%
  • Alternative Assets (A): REITs, InvITs, CMBS. Maximum allocation: 5%

You can choose Active Choice (pick your own allocation) or Auto Choice (lifecycle fund that reduces equity as you age).

NPS Withdrawal Rules

At Retirement (Age 60)

  • 60% Lump Sum: Completely tax-free withdrawal
  • 40% Annuity: Must be used to buy pension from an empanelled insurer. Monthly pension is taxable at your slab rate
  • You can put more than 40% into annuity for a higher monthly pension

Partial Withdrawal (Before 60)

  • Allowed after 3 years of NPS membership
  • Up to 25% of your own contributions
  • Only for specific reasons: children's education, marriage, house purchase, medical treatment
  • Maximum 3 partial withdrawals during entire tenure

Premature Exit (Before 60)

  • At least 80% must be used to buy annuity
  • Only 20% can be withdrawn as lump sum

Frequently Asked Questions

Up to Rs 2 lakh: Rs 1.5 lakh under 80CCD(1) within the 80C limit, plus Rs 50,000 under 80CCD(1B). Employer contributions under 80CCD(2) are additional. These benefits are under the old tax regime. In the new regime, only employer's 80CCD(2) contribution is deductible.
If you exit before 60, you must use at least 80% of the corpus to buy an annuity. Only 20% can be withdrawn as lump sum. After 5 years of subscription, you can exit early, but the annuity requirement is stricter.
PPF gives guaranteed 7.1% returns with full tax-free maturity and 15-year lock-in. NPS gives market-linked returns (potentially 10%+) but locks money till 60, and 40% must go to annuity (taxable). NPS is better for higher returns and extra Rs 50K tax deduction; PPF is better for guaranteed, fully tax-free returns with shorter lock-in.
Yes. NPS offers Active Choice (you pick the allocation) and Auto Choice (lifecycle-based). In Active Choice, you can allocate across Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Assets (A). You can change allocation online once per year.
Yes. Since Budget 2019, the entire 60% lump sum withdrawal at maturity is completely tax-free. The 40% annuity portion, however, is taxable as pension income at your applicable slab rate when you receive the monthly pension.
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