NPS Calculator
National Pension System
Use our NPS calculator to estimate your retirement corpus under the National Pension System. See how monthly contributions can build a substantial pension fund by age 60.
Total Corpus at 60
₹1,13,96,627
Investment Breakdown
What is NPS?
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority). It is designed to enable systematic savings during your working life to provide income after retirement. NPS offers a mix of equity, government bonds, corporate bonds, and alternative assets.
NPS Corpus Split
At retirement (age 60), 60% of the corpus can be withdrawn as a tax-free lump sum. The remaining 40% must be used to purchase an annuity from an insurance company to provide a regular pension.
Key NPS Features
- Section 80CCD(1B): An additional tax deduction of up to ₹50,000 is available over and above the ₹1.5 lakh limit under Section 80C, making NPS one of the most tax-efficient retirement tools.
- Tier 1 vs Tier 2: Tier 1 is the primary pension account with a lock-in until age 60. Tier 2 is a voluntary savings account with no lock-in but limited tax benefits.
- Annuity Requirement: At least 40% of your NPS corpus must be used to buy an annuity, ensuring a regular income stream during retirement.
- Flexible Asset Allocation: You can choose between Active Choice (you pick the allocation) and Auto Choice (allocation based on your age) across equity, bonds, and government securities.
Disclaimer: This calculator provides approximate results for illustrative purposes only. Actual returns depend on the chosen fund manager and asset allocation. NPS returns are market-linked and not guaranteed. Past performance is not indicative of future results.