NPS Calculator Pension & Corpus Estimator
Plan Your Secure Retirement with National Pension System
Calculate your retirement corpus, monthly pension, and lumpsum withdrawal from NPS. Get detailed projections based on your contributions and expected returns.
NPS Calculator
National Pension System - Plan Your Retirement
NPS allows withdrawal from age 60
Minimum ₹500 per month recommended
Typical range: 8-12% based on asset allocation
Expected yearly increase in contribution
Expected annuity return rate (typical: 5-7%)
💡 Tip: NPS offers tax benefits under Section 80CCD with additional ₹50,000 deduction. Returns typically range from 8-12% based on asset allocation.
Understanding NPS (National Pension System)
What is NPS?
- Government-sponsored pension scheme for all Indian citizens
- Voluntary defined contribution pension system
- Regulated by PFRDA (Pension Fund Regulatory & Development Authority)
- Available to anyone aged 18-70 years
Key Features
- Minimum: ₹500 per month (₹6,000 per year)
- Maximum: No upper limit on contributions
- Returns: Market-linked (8-12% typically)
- Choose between Active or Auto asset allocation
Tax Benefits
Within overall 80C limit of ₹1.5 lakh
Extra deduction over and above 80C
Employer contribution (for salaried)
Withdrawal Rules
- At 60 years: 60% must be used to buy annuity
- 40% can be withdrawn as lumpsum (tax-free)
- Partial Withdrawal: Up to 25% after 3 years
- Maximum 3 partial withdrawals allowed
Asset Classes
- Equity (E): Up to 75% in stocks (higher risk, higher returns)
- Corporate Bonds (C): Debt instruments
- Government Securities (G): Safest, lower returns
- Alternative Assets (A): REITs, InvITs (up to 5%)
Why Choose NPS?
Extra ₹50,000 over 80C limit
Potential for 10-12% annual returns
One of the lowest-cost pension products
Choose your asset allocation
Continue even after job changes
Annuity provides lifelong income
Why Our NPS Calculator Stands Out
Complete Breakdown
Detailed calculation showing corpus accumulation, lumpsum withdrawal (40%), annuity purchase (60%), and estimated monthly pension based on current annuity rates.
India-Specific Rules
Built specifically for Indian NPS regulations including PFRDA guidelines, 60-40 withdrawal split rule, and realistic annuity rates offered by Indian insurance companies.
Tax Benefit Calculator
Understand your total tax savings including Section 80CCD(1B) extra ₹50,000 deduction, showing you the true value of investing in NPS for your retirement planning.
How to Use the NPS Calculator
Enter Your Current Age
Input your current age to calculate investment duration until retirement at 60. Remember, NPS allows contributions from age 18 to 70.
Set Monthly Contribution
Choose how much you can invest monthly (minimum ₹500). Consider maximizing contributions to get the additional ₹50,000 tax benefit under 80CCD(1B).
Select Expected Return Rate
Enter expected annual returns based on your asset allocation. Aggressive (75% equity) typically 10-12%, Moderate 8-10%, Conservative 6-8%.
View Retirement Projections
See your total corpus at 60, tax-free lumpsum amount (40%), annuity amount (60%), and estimated monthly pension for life based on current annuity rates.
Frequently Asked Questions
What is the 60:40 rule in NPS?
At retirement (age 60), you must use at least 40% of your NPS corpus to purchase an annuity plan that provides regular pension. The remaining 60% can be withdrawn as a tax-free lumpsum. You can choose to buy more annuity for higher pension.
Can I withdraw my NPS corpus before 60 years?
Premature exit is allowed after 3 years in certain cases like critical illness or for specific purposes. However, 80% must be used to buy annuity and only 20% can be withdrawn. It's better to stay invested until 60 for maximum benefits.
What are the tax benefits of NPS?
NPS offers triple tax benefits: (1) Up to ₹1.5 lakh under Section 80CCD(1) within 80C limit, (2) Additional ₹50,000 under 80CCD(1B), (3) Employer contribution up to 10% of salary under 80CCD(2). Lumpsum withdrawal and annuity purchases are also partially tax-free.
What is Active Choice vs Auto Choice in NPS?
Active Choice lets you decide asset allocation between Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Assets (A) up to 75% in equity. Auto Choice automatically adjusts allocation based on your age, reducing equity exposure as you near retirement.
Is NPS better than PPF for retirement?
Both have advantages. NPS offers higher return potential (10-12% vs 7.1% in PPF), extra tax benefits, but has market risk and mandatory annuity purchase. PPF is safer with guaranteed returns and full liquidity. Many financial advisors suggest having both for balanced retirement planning.
What happens to NPS after the subscriber's death?
The entire accumulated corpus is paid to the nominee/legal heir. There is no requirement to purchase annuity, and the full amount is paid as a lumpsum. The amount is tax-free in the hands of the nominee, making NPS a good financial security tool for family.
Disclaimer
This calculator provides estimates based on the inputs provided and assumed rates of return. Actual NPS returns are market-linked and may vary based on your asset allocation and market conditions. The annuity rate and monthly pension amounts are indicative and depend on prevailing annuity rates at retirement. For official NPS account details, please visit the CRA system at www.npscra.nsdl.co.in. This calculator is for informational purposes only and should not be considered as financial advice. Please consult with a financial advisor for personalized retirement planning.