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NPS Calculator

Estimate NPS retirement corpus. Monthly contribution, expected return and years.

GratuityPPFEPF / PFEMISIPFDNPSIncome TaxHRAAgeGSTPercentageBMI
How to use this calculator
  1. 1

    Enter monthly contribution

    Enter how much you plan to contribute to NPS every month.

  2. 2

    Set expected return and years

    Choose an expected annual return (e.g. 10% for balanced allocation) and the number of years until retirement.

  3. 3

    View corpus and pension estimate

    See your projected retirement corpus, the 40% mandatory annuity portion (for monthly pension), and the 60% tax-free lump-sum withdrawal.

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%
yrs

Estimated corpus

Total contribution₹ 15,00,000
Estimated growth₹ 51,34,167
Corpus at retirement₹ 66,34,167

NPS returns depend on scheme (equity/debt mix). This is an estimate. Partial withdrawal rules apply.

Quick answer

NPS can be a cost-efficient retirement builder, but final pension depends on contribution consistency, market returns, and annuity rates at exit.

National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by PFRDA. It offers a mix of equity, corporate bonds, and government securities, with the flexibility to choose your asset allocation and fund manager.

What is this calculator?

An NPS Calculator estimates the retirement corpus you will build through regular monthly contributions. Enter your monthly contribution, expected return, and years until retirement. The calculator shows your total contribution, estimated growth, and the corpus at retirement.

Formula

NPS corpus is the future value of monthly contributions:

FV = P × [((1 + i)^n − 1) / i]

Where P = monthly contribution, i = expected monthly return = annual return ÷ 12, n = total months.

At retirement, at least 40% of the corpus must be used to buy an annuity (monthly pension). The remaining 60% can be withdrawn as a lump sum (tax-free).

Example

Monthly contribution: ₹5,000, Expected return: 10% p.a., Duration: 25 years. Total contribution: ₹15,00,000. Estimated growth: ₹51,23,000. Corpus at retirement: ₹66,23,000. 40% annuity (₹26.5L) → provides monthly pension. 60% lump sum (₹39.7L) → tax-free withdrawal.

Scenario snapshots

Additional tax-saving case

Layer 80CCD(1B) contribution on existing retirement plan and compare tax impact.

Retirement annuity planning

Estimate total corpus first, then evaluate pension from mandated annuity portion.

Decision guide

Choose this when

  • ✓You want long-term retirement-focused accumulation with low-cost structure.
  • ✓You want additional tax deduction beyond Section 80C limits.
  • ✓You can stay invested through long horizon with market-linked allocation.

Pick another route when

  • •You need full liquidity before retirement age.
  • •You are uncomfortable with annuity purchase requirement at exit.
  • •You need guaranteed return outcomes for fixed liabilities.

Common mistakes to avoid

  • !Assuming corpus projection equals pension without annuity-rate check.
  • !Ignoring asset allocation risk while using aggressive return assumptions.
  • !Treating tax treatment as static without checking latest rules.

Assumptions and disclaimers

Updated context: FY 2026

  • •Monthly contribution and annual return are held constant for modeling.
  • •Minimum annuity purchase rule at retirement is referenced broadly.
  • •Actual pension depends on future annuity rates and provider choice.

In practice (India)

NPS calculator searches in India usually include Section 80CCD(1B) tax benefit and pension-at-retirement estimates. Use this calculator to model corpus size under multiple return assumptions, then separately evaluate expected annuity income because annuity rates vary by insurer and time.

For broader retirement planning, compare NPS with EPF and PPF so you can balance liquidity, tax treatment, and equity exposure.

Benefits

  • ✓Extra ₹50,000 tax deduction under Section 80CCD(1B), over and above 80C limit.
  • ✓Low expense ratio (0.01–0.09%) compared to mutual funds.
  • ✓Choice of Active or Auto allocation strategy.
  • ✓Portable across jobs and locations.

Related calculators and guides

Frequently Asked Questions

Can I withdraw NPS before retirement?
Partial withdrawal is allowed after 3 years of contribution for specific purposes: children's education, marriage, house purchase, critical illness. Up to 25% of your own contributions can be withdrawn (max 3 times).
Is NPS better than PPF?
NPS has equity exposure (potentially higher returns) and an extra ₹50K tax benefit. PPF is fully tax-free and safer. Ideally, use both. PPF for guaranteed tax-free returns, NPS for equity-linked growth and additional tax saving.
What happens to NPS at age 60?
You must use at least 40% of the corpus to buy an annuity plan from an empanelled insurer. Up to 60% can be withdrawn as a lump sum (tax-free). You can also defer withdrawal until age 75.
How are NPS returns taxed?
The 60% lump sum withdrawal at retirement is tax-free. The monthly pension from the annuity is taxable as per your slab. Employee contribution up to 10% of salary (14% for govt employees) qualifies for tax deduction.
What are Tier I and Tier II NPS accounts?
Tier I is the main pension account with a lock-in until 60, mandatory for tax benefits. Tier II is a voluntary savings account with no lock-in and no additional tax benefit (except for govt employees).

NPS returns depend on market conditions and the asset allocation chosen. This calculator provides an estimate based on a fixed expected return.