NPS Calculator

Calculate your National Pension System returns and retirement corpus

₹5,000
30 Years
10%
7%
40%
Minimum 40% required by NPS rules

About NPS Investment

The National Pension System (NPS) is a government-sponsored pension scheme that helps you build a retirement corpus while providing tax benefits under Section 80C and 80CCD.

Key Benefits:
  • Tax deduction up to ₹2 lakh
  • Market-linked returns
  • Flexible investment options
  • Low cost structure
  • Professional fund management

Frequently Asked Questions

What is NPS (National Pension System)?

NPS is a government-sponsored pension scheme that allows individuals to invest systematically during their working years to build a retirement corpus. It provides market-linked returns and tax benefits under various sections of the Income Tax Act.

How does NPS calculator work?

An NPS calculator estimates your retirement corpus based on your monthly investment, current age, expected returns, and annuity rate. It calculates the total corpus, lump sum withdrawal (60%), annuity investment (40%), and monthly pension amount.

What are the tax benefits of NPS?

NPS offers tax benefits under Section 80C (up to ₹1.5 lakh) and Section 80CCD(1B) (additional ₹50,000). This means you can save up to ₹2 lakh in taxes annually by investing in NPS.

How is the NPS corpus calculated?

The NPS corpus is calculated using compound interest formula considering your monthly contributions, investment duration, and expected returns. The calculator shows both the total corpus and how it's divided between lump sum withdrawal and annuity investment.

What happens to NPS after retirement?

At retirement (age 60), you can withdraw 60% of the corpus as a lump sum (tax-free), and the remaining 40% must be used to purchase an annuity that provides monthly pension. The annuity income is taxable as per your income tax slab.

Understanding National Pension System (NPS) and Retirement Planning

The National Pension System (NPS) stands as one of India's most significant retirement planning initiatives, designed to provide financial security to citizens during their golden years. This market-linked pension scheme combines the benefits of systematic investing with attractive tax advantages, making it an essential tool for comprehensive retirement planning.

How NPS Calculator Enhances Your Retirement Planning

Our sophisticated NPS calculator serves as your financial planning companion, offering precise estimates of your retirement corpus based on various parameters. By inputting your monthly investment amount, current age, expected rate of return, and annuity preferences, you gain valuable insights into your future financial position. This powerful tool helps you understand how your systematic contributions today translate into substantial retirement benefits tomorrow.

Key Features of National Pension System

The NPS scheme operates on a unique structure that maximizes both growth potential and tax efficiency. Your monthly contributions are invested in a diversified portfolio across equity, corporate bonds, and government securities, providing market-linked returns while maintaining reasonable risk levels. The system offers two investment choices: Active Choice (where you decide asset allocation) and Auto Choice (where allocation adjusts based on your age).

Tax Benefits and Financial Advantages

One of the most compelling aspects of NPS is its exceptional tax treatment. Contributions qualify for deductions under Section 80C (up to ₹1.5 lakh) and Section 80CCD(1B) (additional ₹50,000), potentially saving you up to ₹2 lakh in annual taxes. Additionally, the 60% lump sum withdrawal at retirement is completely tax-free, while the remaining 40% invested in annuities continues to provide regular income.

Understanding the Annuity Component

The mandatory annuity purchase with 40% of your NPS corpus ensures lifetime income security. Our calculator factors in current annuity rates to estimate your monthly pension amount, helping you plan for post-retirement expenses. This unique feature distinguishes NPS from other retirement instruments by guaranteeing a steady income stream throughout your retirement years.

Maximizing Your NPS Returns

Strategic planning can significantly enhance your NPS outcomes. Starting early allows compound interest to work its magic, while maintaining consistent contributions builds substantial corpus over time. Our calculator demonstrates how different investment amounts, return expectations, and time horizons impact your final retirement benefits, enabling informed decision-making for optimal results.

Retirement Planning Tips

  • Start investing early to maximize compound growth
  • Maintain consistent monthly contributions
  • Choose appropriate asset allocation based on age
  • Review and adjust investment amount periodically
  • Consider increasing contributions with salary hikes
  • Monitor fund performance regularly

Important Considerations

  • Minimum annual contribution: ₹1,000
  • Partial withdrawal allowed after 3 years
  • Exit before 60 years requires 80% annuity purchase
  • Account can be extended up to 70 years
  • Multiple fund managers available