Investment

NPS Calculator

Pension corpus & monthly income

NPS Details

5002,00,000
Yrs
18 Yrs55 Yrs
Yrs
50 Yrs70 Yrs
% p.a.
6% p.a.15% p.a.
%
4%9%
%
40%100%

Invested

₹18.00 L

Total Corpus

₹1.14 Cr

Lump Sum

₹68.38 L

Monthly Pension

₹22,793

Corpus Split at Retirement

Lump SumAnnuity

Summary

Investment Period30 Yrs
Total Invested₹18.00 L
Total Corpus₹1.14 Cr
Lump Sum (60%)₹68.38 L
Annuity Fund (40%)₹45.59 L
Monthly Pension₹22,793

Corpus Growth Projection

Total CorpusInvested

NPS Calculator – Plan Your Retirement Pension with National Pension System

The National Pension System (NPS) is a government-regulated retirement savings scheme open to all Indian citizens aged 18–70. It combines market-linked growth during your working years with a guaranteed pension income after retirement — making it a powerful tool for long-term financial security. Our NPS calculator helps you estimate your total corpus at retirement, the lump-sum withdrawal amount, and the expected monthly pension, so you can plan your post-retirement income with confidence.

How the NPS Calculator Works

NPS accumulates your monthly contributions in a pension fund that earns market-linked returns. At retirement (typically age 60), you can withdraw up to 60% of the corpus as a lump sum — tax-free. The remaining 40% (minimum) must be used to purchase an annuity that provides a lifetime monthly pension. Our calculator uses the SIP future value formula to project your corpus, then splits it into the lump-sum and annuity portions based on your preferences, and computes your monthly pension from the annuity fund using the annuity rate you choose.

Benefits of NPS Investment

  • Superior Tax Benefits: Contributions get deduction under 80CCD(1) up to ₹1.5L + additional ₹50,000 under 80CCD(1B) — total up to ₹2L per year.
  • Market-linked Growth: NPS equity funds (E class) have historically delivered 10–13% CAGR, offering inflation-beating growth.
  • Lump Sum + Pension: Combines a tax-free lump sum at retirement with a lifetime monthly pension — the best of both worlds.
  • Low Cost: NPS has the lowest fund management charges in India — as low as 0.09% per annum versus 1–2% for mutual funds.
  • Flexible Asset Allocation: Choose your equity-debt mix (Active or Auto choice) and adjust it annually based on your risk profile and age.

Key Features

  • Corpus Projection: Projects total NPS corpus at retirement using your monthly contribution, ages, and expected return rate.
  • Annuity Flexibility: Adjust the annuity percentage (40–100%) to see different combinations of lump sum and monthly pension.
  • Monthly Pension Estimate: Shows expected monthly pension based on your annuity fund and the annuity rate offered by empaneled insurers.
  • Corpus Growth Chart: Area chart shows how your NPS corpus grows year by year versus total invested amount.
  • 4 Summary Cards: At-a-glance view of total invested, total corpus, lump-sum amount, and monthly pension in one place.

Frequently Asked Questions about NPS

What is the minimum NPS contribution per year?

For Tier-I NPS accounts, the minimum annual contribution is ₹1,000 and the minimum per transaction is ₹500. There is no maximum limit. For Tier-II accounts (optional, no pension benefit, no tax benefit), the minimum initial contribution is ₹1,000 with no minimum annual requirement after the first year.

Can I withdraw from NPS before age 60?

Partial withdrawals from NPS are allowed after 3 years for specific purposes: higher education, marriage of children, home purchase, treatment of critical illness, or starting a business — up to 25% of your own contributions. Premature complete exit (before 60) is allowed after 10 years but requires 80% of corpus to be annuitized.

What tax benefits does NPS offer?

NPS offers three tax benefits: (1) Contributions up to ₹1.5 lakh under Section 80CCD(1) within the 80C limit; (2) An additional exclusive deduction of ₹50,000 under Section 80CCD(1B) — this is over and above the 80C limit; (3) 60% of the corpus withdrawn at retirement is completely tax-free under Section 10(12A).

What are NPS fund types and how should I choose?

NPS offers four asset classes: Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Investment Funds (A). Young investors (under 40) typically benefit from higher equity allocation (50–75%). As you approach retirement, gradually shifting to debt (G and C funds) reduces risk. You can choose Active choice for manual allocation or Auto choice for age-based automatic rebalancing.

What is the difference between NPS Tier-I and Tier-II?

Tier-I is the mandatory pension account with lock-in until age 60 — all tax benefits apply here. Tier-II is an optional, voluntary savings account linked to Tier-I with no lock-in and no tax benefits (except for government employees). Tier-II functions like a flexible investment account but offers lower charges than comparable mutual funds.