NPS Calculator

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 At retirement, 60% of the corpus can be withdrawn tax-free as a lump sum, while 40% must be used to purchase an annuity that provides monthly pension income for life.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

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