NPS Calculator
Estimate your National Pension System corpus at retirement. Enter your age, monthly contribution, and expected return to plan your pension.
NPS Calculator
Frequently Asked Questions
What is NPS and how does it work?
NPS (National Pension System) is a government-sponsored pension scheme. You contribute monthly or yearly during your working life, and at retirement (age 60), you must use at least 40% of the corpus to buy an annuity (monthly pension). The remaining 60% can be withdrawn tax-free.
What is the tax benefit of NPS?
NPS offers an additional tax benefit of ₹50,000 under Section 80CCD(1B) over and above the ₹1.5 lakh limit of Section 80C. Employer contributions up to 10% of basic salary are also deductible under 80CCD(2) with no upper limit.
What returns can I expect from NPS?
NPS returns depend on your asset allocation. Historically, NPS equity (Scheme E) has delivered 12-14% CAGR, corporate bonds 8-10%, and government securities 7-9%. A balanced allocation typically yields 9-11% over the long term.
Can I withdraw from NPS before retirement?
Partial withdrawal is allowed after 3 years for specific purposes (education, marriage, house purchase, medical treatment). Up to 25% of own contributions can be withdrawn, maximum 3 times during the entire tenure.
How to Use This NPS Calculator
Enter your current age, planned retirement age, monthly contribution amount, and expected annual return. The calculator estimates your total corpus at retirement, helping you plan adequate contributions for your desired pension.
Benefits of NPS
- Extra ₹50,000 tax deduction under Section 80CCD(1B)
- Low fund management charges (0.01% - lowest among pension funds)
- Flexible asset allocation across equity, bonds, and government securities
- Portability across employers and locations
Complement NPS with a mutual fund SIP for additional wealth building outside the pension system. Use our PPF Calculator to plan your Section 80C allocation.
National Pension System (NPS) guide
NPS is a voluntary retirement scheme regulated by PFRDA. Tier I is locked until age 60 (partial withdrawal allowed for specific goals). You choose asset allocation between equity (E), corporate debt (C), government bonds (G), and alternative (A). Active choice allows up to 75% equity until age 50, tapering to 50% by 60.
Tax benefits: employee contribution up to 10% of basic (80CCD(1)), employer contribution up to 10% (80CCD(2) — additional for salaried), and extra ₹50,000 under 80CCD(1B) beyond 80C limit. At maturity, 60% can be withdrawn tax-free (lump sum), 40% must buy annuity (taxable pension).
NPS vs mutual fund retirement corpus
NPS has lower fund management costs but mandatory annuity reduces flexibility. Equity mutual funds offer full liquidity and no forced annuity but lack exclusive 80CCD(1B) benefit. Many investors max 80CCD(1B) in NPS and build primary corpus via equity SIPs.
Choosing NPS fund manager
Compare 5-year returns of SBI, HDFC, ICICI Pru, UTI NPS schemes on CRA portal. Auto lifecycle funds reduce manual rebalancing. Review allocation annually as you approach 50.