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NPS Calculator

NPS Calculator — National Pension System

Project your NPS (National Pension System) retirement corpus, mandatory annuity purchase, and estimated monthly pension at retirement.

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📊 Enter NPS Contribution Details

Tax: Up to ₹2L deductible (₹1.5L u/s 80C + ₹50K u/s 80CCD(1B))
On retirement: 60% corpus tax-free lump sum, 40% used to buy annuity

💰 Projected Corpus & Pension

Enter details to calculate NPS corpus
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Disclaimer: Results provided by this calculator are for educational and estimation purposes only. They do not constitute formal financial, investment, or tax advice. Actual returns, rates, and tax treatment depend on your specific circumstances and prevailing regulations. Consult a certified financial advisor or chartered accountant before making financial decisions.

How NPS Corpus and Pension Are Projected

NPS is a market-linked retirement scheme where your monthly contributions grow at market-linked returns (unlike PPF/EPF's fixed government rate) until retirement. At retirement, you must use at least 40% of your corpus to purchase an annuity (which pays you a monthly pension for life), and can withdraw the remaining balance as a lump sum, up to 60% of it tax-free.

Worked Example

Contributing ₹5,000/month at an expected 10% p.a. return for 25 years builds a corpus, of which 40% (the minimum) must go toward an annuity. At a typical 6% annuity rate, that annuity portion converts into a fixed monthly pension for life — the exact numbers depend on your actual contribution growth and the annuity provider's rate at the time you retire.

Frequently Asked Questions

NPS returns are market-linked (invested in a mix of equity, corporate bonds, and government securities you can partly choose), so they carry more risk but historically higher potential returns than EPF/PPF's fixed government rates. NPS also mandates converting part of your corpus into an annuity at retirement, whereas EPF/PPF give you the full corpus as a lump sum.
Beyond the standard 80C limit of ₹1.5 lakh, NPS offers an additional exclusive deduction of up to ₹50,000 under Section 80CCD(1B) — making it one of the few ways to reduce taxable income beyond the 80C ceiling, on top of whatever else you've already claimed there.
Yes, under the "Active Choice" option you can allocate across equity, corporate bonds, and government securities (with equity capped, usually at 75%, reducing as you age under the auto-choice lifecycle option). "Auto Choice" automatically shifts your allocation toward safer instruments as you approach retirement age.
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