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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The National Pension System (NPS) is a voluntary, market-linked retirement savings scheme that offers tax benefits under Section 80C and 80CCD(1B). With over ₹10 lakh crore in assets under management, NPS has become a popular choice for retirement planning. Use the calculator above to estimate your corpus and monthly pension.
NPS Corpus for Different Monthly Contributions
| Monthly Contribution | 20 Years Corpus | 30 Years Corpus | Monthly Pension |
|---|---|---|---|
| ₹2,000 | ₹15.1L | ₹45.2L | ₹9,040 |
| ₹5,000 | ₹37.8L | ₹1.13Cr | ₹22,600 |
| ₹10,000 | ₹75.6L | ₹2.26Cr | ₹45,200 |
| ₹25,000 | ₹1.89Cr | ₹5.65Cr | ₹1,13,000 |
*Assuming 10% returns, 40% annuity purchase at 6% annuity rate. Actual returns vary.
NPS vs PPF vs ELSS — Retirement Comparison
| Factor | NPS | PPF | ELSS |
|---|---|---|---|
| Expected Returns | 9-11% | 7.1% | 12-15% |
| Lock-in | Until 60 | 15 years | 3 years |
| Risk | Medium | None | High |
| Tax at Exit | 60% tax-free | 100% tax-free | LTCG over ₹1L |
| 80C Benefit | Yes | Yes | Yes |
| Extra Tax Benefit | ₹50k (80CCD(1B)) | None | None |
NPS Tax Benefits at a Glance
Section 80C — ₹1.5 Lakh
Your NPS Tier I contribution qualifies for deduction under Section 80C, shared with other investments like PPF, ELSS, and life insurance.
Section 80CCD(1B) — Extra ₹50,000
An exclusive additional deduction available only for NPS. This is over and above the ₹1.5L limit under 80C — do not miss this.
Section 80CCD(2) — Employer Contribution
Employer NPS contribution up to 10% of salary (14% for central govt) is tax-exempt with no upper monetary limit.
Partial Withdrawal Tax Rules
You can withdraw up to 25% of your corpus for specific purposes (home purchase, children education, etc.) after 3 years — tax-free.
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 The remaining corpus can be withdrawn as a lump sum tax-free.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.
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 ÷ 100A quick example
Let us calculate the NPS corpus and pension for a typical investor:
Step by step
- 1.Investment tenure = 60 - 30 = 30 years = 360 months
- 2.Monthly return rate r = 10% ÷ 12 ÷ 100 = 0.00833
- 3.Corpus = ₹5,000 × ((1 + 0.00833)^360 - 1) / 0.00833 × (1 + 0.00833)
- 4.Corpus ≈ ₹1,13,00,000 (₹1.13 crore)
- 5.Annuity corpus (40%) = ₹1,13,00,000 × 0.40 = ₹45,20,000
- 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)