NPS Calculator
National Pension System retirement corpus estimator
₹
yrs
%
%
NPS Corpus at 60
—
Total Invested
—
Returns Earned
—
Lump Sum (60%)
—
Monthly Pension (40% annuity)
—

What is NPS (National Pension System)?

NPS is a government-regulated voluntary pension scheme for all Indian citizens aged 18–70. You contribute monthly, and at 60 you withdraw 60% tax-free as a lump sum and use at least 40% to buy an annuity for monthly pension. It also offers an additional ₹50,000 tax deduction under Section 80CCD(1B).

Formula used

NPS Corpus = M × [(1+r)^n − 1] ÷ r × (1+r) Where: M = Monthly contribution r = Monthly rate = Annual rate ÷ 12 ÷ 100 n = Months until age 60 Lump sum (tax-free): 60% of corpus Annuity corpus: 40% Monthly pension = Annuity corpus × annuity rate ÷ 12

How to use this calculator

  1. Enter monthly contribution
  2. Enter your current age
  3. Enter expected return (equity NPS historical: 10–12%)
  4. Enter expected annuity rate (typically 5–7%)
  5. Click Calculate

Example

Example — Starting NPS at 30, ₹5,000/month:
Monthly: ₹5,000 | Age: 30 | Return: 10% | Annuity rate: 6%
NPS corpus at 60: ≈ ₹1.13 crore
Lump sum (60%): ₹68L tax-free | Annuity (40%): ₹45L
Monthly pension = ₹45L × 6% ÷ 12 = ₹22,500/month

Tax saving on ₹50,000 NPS (Section 80CCD(1B)) at 30% bracket:
Tax saved = ₹50,000 × 30% × 1.04 = ₹15,600/year
This is over and above the ₹1.5L Section 80C limit.

Frequently asked questions

Tier I: ₹500 per contribution, ₹1,000 per year. No maximum. For central government employees, 10% of basic is mandatory.
Auto choice adjusts equity/debt ratio automatically based on age. Active choice lets you put up to 75% in equity (E funds). Equity NPS has historically returned 12–14%. Reduce equity exposure as you approach 60.
After 3 years: premature exit allows only 20% lump sum (80% must buy annuity). At 60: 60% lump sum + 40% annuity. Death: full corpus to nominee.