NPS Calculator
Estimate your National Pension System corpus at 60, your tax-free lump sum, and your monthly pension.
Corpus at 60
—
Tax-free Lump Sum
—
Annuity Corpus
—
Monthly Pension
—
How the NPS calculator works
Enter your monthly contribution, current age, expected return, and the portion of the corpus you'll convert to an annuity at 60. The calculator compounds contributions monthly to age 60, then splits the corpus into a tax-free lump sum and an annuity that funds your monthly pension.
Why NPS earns its place
NPS is among the lowest-cost retirement products in India, with an extra ₹50,000 tax deduction the new regime can't match (old regime). The trade-off is the mandatory annuity at 60 and limited liquidity — so treat it as a dedicated pension layer alongside, not instead of, equity SIPs.
Frequently Asked Questions
What is the NPS?
The National Pension System is a government-backed, market-linked retirement scheme. You contribute until age 60; the corpus is invested across equity and debt. At 60 you must use at least 40% to buy an annuity (pension), and can withdraw up to 60% as a tax-free lump sum.
What returns can I expect from NPS?
NPS returns depend on your asset mix. Equity-heavy allocations have historically returned around 9–12%, debt-heavy ones 7–9%. This calculator lets you set an expected blended return; actual returns are market-linked and not guaranteed.
What tax benefits does NPS offer?
Beyond the 80C limit, NPS offers an extra ₹50,000 deduction under Section 80CCD(1B) in the old regime. Employer contributions under 80CCD(2) are deductible in both regimes. The 60% lump sum at maturity is tax-free.
How is the pension calculated?
At 60, the annuity portion (minimum 40% of corpus) buys a pension at the prevailing annuity rate (often 6–7%). This calculator estimates a monthly pension using your chosen annuity percentage and rate.
Disclaimer: This calculator produces illustrative estimates only. Actual returns vary and, unless stated otherwise, results exclude expense ratios, exit loads, transaction costs, and taxes. Assumed rates are inputs, not forecasts or assured returns. This is educational content, not personalized investment advice — see our full disclaimer.