NPS Calculator
Calculate NPS corpus at retirement. See lump sum (60%), annuity (40%), and estimated monthly pension.
What is NPS Calculator?
An NPS (National Pension System) calculator projects your retirement corpus and estimated monthly pension from India's government-backed pension scheme. NPS is a voluntary defined-contribution pension scheme where you invest regularly during your working years, building a corpus that provides income after age 60. At retirement, 60% of the corpus can be withdrawn tax-free as a lump sum, while 40% must be used to purchase an annuity that provides monthly pension income for life.
How It Works
Enter your monthly contribution, expected annual return rate (equity: 10-12%, corporate bonds: 8-10%, government securities: 7-8%), current age, and retirement age. The tool compounds your monthly contributions over the investment period, showing total investment, estimated returns, and final corpus. It then applies the 60/40 rule: 60% shown as lump sum withdrawal, 40% used to calculate monthly pension (typically at 6% annuity rate). Year-by-year growth demonstrates how early starting dramatically increases the final corpus through compounding.
Common Use Cases
- •Planning monthly NPS contributions needed to achieve a target retirement corpus
- •Understanding the impact of asset allocation (equity vs debt) on long-term NPS returns
- •Estimating post-retirement monthly pension income from the annuity portion
- •Calculating the tax benefit of NPS contributions under Section 80CCD(1B) additional ₹50,000 deduction
- •Comparing NPS projections with other retirement instruments like PPF, EPF, and mutual funds
- •Deciding between maximum equity exposure (75% until age 50) vs conservative allocation in NPS
Frequently Asked Questions
What is the 60-40 rule in NPS?▼
At retirement, 60% of the corpus can be withdrawn as a lump sum (tax-free), and 40% must be used to purchase an annuity.
What is the 60-40 rule at retirement?▼
On maturity at 60, up to 60% of the corpus may be taken as a tax-free lump sum and at least 40% must buy an annuity that provides a pension. The annuity income is then taxable as ordinary income in the year received.
What is the difference between the active and auto choice?▼
Active choice lets you set your own split across equity, corporate bonds, government securities and alternatives, with equity capped at 75%. Auto choice follows a lifecycle glide path that reduces equity automatically as you age, with aggressive, moderate and conservative variants.
What tax benefits does NPS offer?▼
Contributions qualify under section 80CCD(1) within the overall 80C limit, plus an additional ₹50,000 deduction under 80CCD(1B) that sits outside it. Employer contributions under 80CCD(2) are deductible separately, subject to a percentage-of-salary cap. Benefits differ between the old and new tax regimes, so check which applies to you.
Can I withdraw from NPS before 60?▼
Only in limited circumstances. Partial withdrawal of up to 25% of your own contributions is allowed after three years for specified purposes such as education, marriage, home purchase or serious illness. Full premature exit generally requires 80% of the corpus to be annuitised, leaving little as cash.
Are NPS returns guaranteed?▼
No. Returns depend on the market performance of the funds you select, and the eventual pension also depends on annuity rates at the time you retire — which are themselves unknown today. Any projected pension figure is an illustration, not a promise.
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