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NPS Calculator

Plan your retirement with the National Pension System. Calculate your corpus, monthly pension, Tier I & Tier II allocation, and compare NPS vs PPF vs ELSS.

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NPS Calculator

Your NPS Details

30 yrs
18 yrs55 yrs
60 yrs
31 yrs70 yrs
₹5,000
₹500₹1.0L
₹0
₹0₹10K
10% p.a.
6% p.a.14% p.a.

Withdrawal Settings

Annuity Purchase %40%
40%
40%100%
6% p.a.
4% p.a.9% p.a.
📖 NPS Withdrawal Rules
Minimum 40% corpus must be used to buy annuity. Up to 60% can be withdrawn as lump sum — tax-free. Annuity income is taxable as per slab.
Total NPS Corpus at 60
₹1.14 Cr
Invested: ₹18.00 L · Returns: ₹95.97 L
Total
₹1.1Cr
Invested
Returns
Lump Sum (Tax-Free)
₹68.38 L
60% of corpus
Annuity Corpus
₹45.59 L
40% of corpus
Monthly Pension
₹22,793
@6% annuity
Investment Period
30 yrs
30 → 60 years

Corpus Growth Projection

NPS corpus build-up year by year

Total Invested
Projected Corpus

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How to Calculate NPS Corpus & Pension

In plain words

NPS corpus is calculated using the future value of annuity formula, similar to SIP. At retirement, a portion (typically 40%) must be used to purchase an annuity that provides a monthly pension. The remaining corpus can be withdrawn as a lump sum tax-free. NPS contributions qualify for additional tax deduction under Section 80CCD(1B) up to ₹50,000.

How the calculation works
Corpus = P × ((1 + r)^n - 1) / r × (1 + r) Where: P = Total Monthly Contribution (Employee + Employer) r = Monthly Rate of Return (Annual Return ÷ 12 ÷ 100) n = Total Months to Retirement (Retirement Age - Current Age) × 12 Annuity Corpus = Corpus × Annuity Percentage ÷ 100 Monthly Pension = Annuity Corpus × Annuity Rate ÷ 12 ÷ 100

A quick example

Let us calculate the NPS corpus and pension for a typical investor:

Current Age:30 years
Retirement Age:60 years
Monthly Contribution:₹5,000
Expected Return:10%

Step by step

  1. 1.Investment tenure = 60 - 30 = 30 years = 360 months
  2. 2.Monthly return rate r = 10% ÷ 12 ÷ 100 = 0.00833
  3. 3.Corpus = ₹5,000 × ((1 + 0.00833)^360 - 1) / 0.00833 × (1 + 0.00833)
  4. 4.Corpus ≈ ₹1,13,00,000 (₹1.13 crore)
  5. 5.Annuity corpus (40%) = ₹1,13,00,000 × 0.40 = ₹45,20,000
  6. 6.Monthly pension = ₹45,20,000 × 6% ÷ 12 = ₹22,600

So the answer is: Total Corpus ≈ ₹1,13,00,000 | Monthly Pension ≈ ₹22,600 (at 6% annuity rate)

Frequently Asked Questions

What is NPS?
NPS (National Pension System) is a government-sponsored retirement savings scheme. It is mandatory for central government employees (except armed forces) and voluntary for all Indian citizens aged 18-70. It offers market-linked returns with a choice of investment funds.
What are the tax benefits of NPS?
NPS offers triple tax benefits: (1) Employee contribution up to 10% of salary (14% for central govt) under Section 80C up to ₹1.5 lakh, (2) Additional deduction under Section 80CCD(1B) up to ₹50,000, (3) Employer contribution up to 10% of salary (14% for central govt) under Section 80CCD(2) exempt from tax.
What is Tier I and Tier II in NPS?
Tier I is a mandatory retirement account with withdrawal restrictions (partial withdrawal allowed after 3 years for specific purposes). Tier II is a voluntary savings account with no withdrawal restrictions — you can withdraw anytime. Tier I offers tax benefits; Tier II does not.
How much pension will I get from NPS?
At retirement, at least 40% of the NPS corpus must be used to purchase an annuity that provides a monthly pension. The pension amount depends on the annuity rate (typically 5-7%) and the corpus size. The remaining 60% can be withdrawn as a lump sum tax-free.
Is NPS better than PPF?
NPS typically offers higher returns (8-12%) compared to PPF (7-8%), but carries market risk. PPF is government-guaranteed with no risk. NPS also offers additional tax benefits (₹50,000 under 80CCD(1B)). For long-term retirement planning, a combination of both is ideal.