NPS Calculator
Enter your monthly NPS contribution to project your retirement corpus at 60 — and the monthly pension it could buy.
Runs entirely in your browser — your numbers never leave this page.
How it works
The National Pension System (NPS) is India's retirement account: you contribute till age 60, the money compounds market-linked, and at retirement the corpus splits by law:
- 60% lump sum — withdrawable tax-free.
- 40% annuity — must buy a pension plan from an insurer; the monthly pension is taxable as salary.
Corpus = monthly contribution compounded monthly till age 60
Monthly pension ≈ (Corpus × 40%) × Annuity rate ÷ 12
- Tax perks: contributions get 80C deduction (within Rs 1.5L) plus an extra Rs 50,000 under 80CCD(1B) — the only deduction of its kind.
- Asset choice: Active Choice lets you set equity/debt split (up to 75% equity till age 50, tapering after); Auto Choice adjusts with age.
- Returns: equity-heavy NPS portfolios have delivered ~9–11% since inception — between PPF safety and pure-equity volatility.
- Tier II is a voluntary add-on with no lock-in but no tax benefits either.
Frequently asked questions
How is the NPS corpus calculated?
Your monthly contribution compounds monthly at the expected return until age 60. Rs 10,000/month from age 30 at 10% grows to roughly Rs 2.27 crore — about Rs 36 lakh invested.
How much pension will NPS give me?
Roughly: (corpus × 40%) × annuity rate ÷ 12. A Rs 2.27 crore corpus with a 7.5% annuity rate gives about Rs 56,000/month pension — taxable as salary.
Is the NPS lump sum tax-free?
Yes — the 60% lump sum withdrawn at 60 is fully tax-exempt. The 40% annuity purchase is also exempt at purchase; only the monthly pension payouts are taxed.
What is the extra Rs 50,000 NPS deduction?
Section 80CCD(1B) gives an additional Rs 50,000 deduction over and above the Rs 1.5 lakh 80C limit — exclusive to NPS. It is available only in the old tax regime.
NPS vs PPF — which is better for retirement?
NPS has higher return potential (market-linked ~10% vs PPF 7.1%) and the extra Rs 50k deduction, but forces 40% into an annuity and taxes the pension. PPF is fully tax-free and flexible. Many planners use both.
Can I withdraw NPS before 60?
Partial withdrawals up to 25% of contributions are allowed after 3 years for specific needs (education, medical, home). Full premature exit before 60 forces 80% into annuity instead of 40%.
What happens to NPS if I die?
The entire corpus goes to the nominee — no annuity compulsion. The nominee can withdraw it fully.
Active vs Auto choice in NPS?
Active Choice lets you set your own equity/corporate-debt/gilt split (max 75% equity). Auto Choice picks a glide path by age (Aggressive/Moderate/Conservative). Active suits hands-on investors.
Is NPS available in the new tax regime?
You can contribute, but the 80CCD deductions (including the extra Rs 50,000) are only useful in the old regime. Employer NPS contributions still get some relief in the new regime.
What annuity rate should I assume?
7–8% is the current range from insurers for lifetime annuities. Rates move with bond yields — the pension is locked at whatever rate prevails when you retire.