Retirement Planning

NPS Calculator

Estimate your NPS retirement corpus and annuity income. Get an additional ₹50,000 deduction under Section 80CCD(1B).

Total Invested

Retirement Corpus

60% Lump Sum

Tax-free withdrawal

40% Annuity

Pension corpus

Estimated Tax Saved (80CCD 1B)

Corpus Breakdown at Retirement

NPS allows 60% lump sum (tax-free) and 40% mandatory annuity at maturity. Tax saving based on 80CCD(1B) limit of ₹50,000/year. Results are indicative only.

What is an NPS Calculator?

An NPS (National Pension System) calculator projects your retirement corpus based on monthly contributions, expected returns, and tenure. At maturity, NPS rules require 40% of the corpus to be converted into an annuity (monthly pension), while up to 60% can be withdrawn as a tax-free lump sum — making NPS a hybrid product with both pension and wealth-creation components.

NPS offers one of the best tax benefits available to Indian taxpayers: up to ₹1.5 lakh under Section 80CCD(1) (within the 80C limit) plus an additional exclusive ₹50,000 under Section 80CCD(1B) — saving significant tax for those in the 30% bracket. The calculator shows this tax saving alongside your projected corpus.

How to Use This NPS Calculator

  1. 1

    Enter your current age and retirement age

    NPS matures at age 60 (extendable to 75). The earlier you start, the more powerful the compounding effect on your contributions.

  2. 2

    Set your monthly contribution

    To utilise the full 80CCD(1B) benefit, invest at least ₹50,000/year (≈₹4,167/month). Any amount above this still grows tax-deferred inside NPS.

  3. 3

    Set your tax bracket and expected return

    Aggressive (75% equity) typically earns 10–12%; Conservative (25% equity) earns 7–9%. Use 10% as a balanced estimate. NPS fund managers have historically delivered solid long-term returns.

  4. 4

    Review lump sum, annuity, and tax savings

    Results show your total corpus, 60% lump sum, 40% annuity corpus (for monthly pension estimation), and cumulative tax saved over the contribution tenure.

NPS vs PPF — Key Differences

FeatureNPSPPF
ReturnsMarket-linked (8–12%)Fixed (7.1% guaranteed)
Tax on Withdrawal60% tax-free; 40% annuity100% tax-free
Extra 80C BenefitYes — ₹50,000 via 80CCD(1B)No extra beyond ₹1.5L
Lock-inUntil age 6015 years

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FAQs

Frequently asked questions

What is NPS and how does it work?
The National Pension System (NPS) is a government-sponsored retirement savings scheme. You contribute regularly, choose your asset allocation (equity, corporate bonds, government securities), and at retirement (age 60), receive 60% as a lump sum (tax-free) and must use 40% to buy an annuity.

What are the tax benefits of NPS?
NPS offers three tax deductions: up to ₹1.5 lakh under Section 80CCD(1) within the 80C limit, an additional ₹50,000 under Section 80CCD(1B) exclusively for NPS, and employer contributions up to 10% of salary under 80CCD(2). This makes NPS one of the most tax-efficient instruments.

Can I withdraw from NPS before retirement?
Partial withdrawal is allowed after 3 years for specific reasons: children's education, marriage, home purchase, medical treatment, or starting a business. You can withdraw up to 25% of your own contributions, up to 3 times during the entire tenure.

NPS vs PPF — which is better for retirement?
NPS offers potentially higher returns (equity exposure up to 75%) and additional tax benefits (₹50,000 under 80CCD(1B)). PPF offers guaranteed returns and full liquidity at maturity. Ideally, use both — NPS for equity exposure and tax savings, PPF for guaranteed, tax-free returns.