NPS Calculator (India)
Estimate National Pension Scheme corpus, monthly pension, and lumpsum at retirement. India NPS Tier I retirement planning.
Total Corpus at Retirement
What is NPS?
National Pension Scheme (NPS) is India's government-backed retirement savings plan launched in 2004. Builds long-term corpus through monthly contributions invested in equity, corporate bonds, and government securities. At retirement (age 60): 60% withdrawable as tax-free lumpsum; 40% mandatory to buy annuity (pension). Best for: salaried individuals with 30+ years to retirement, additional ₹50K tax deduction beyond 80C limit.
How to use
- Enter current age — Younger = more years of compounding
- Set monthly contribution — NPS Tier I: min ₹1,000/year
- Expected return — 10-12% typical for active equity allocation
- Set annuity % — 40% mandatory, can go higher for more pension
Formula
Future Value of monthly investment with compound interest:
FV = M × [((1+r)^n – 1) / r] × (1+r)
Where M = monthly contribution, r = monthly rate, n = total months.
At retirement: 60% lumpsum (tax-free), 40% annuity. Annuity gives monthly pension based on annuity rate (~6-7%).
Tips
- Additional ₹50K deduction under 80CCD(1B) over 80C limit
- Employer contribution under 80CCD(2) deductible up to 10% of basic+DA
- Choose active or auto choice for fund allocation
- Switch fund managers free of cost yearly
- Withdraw lumpsum tax-free; annuity income taxable at slab rate
FAQs
NPS vs PPF?
NPS: market-linked (10-12% potential), more complex, additional ₹50K deduction. PPF: fixed 7.1%, simpler, 15-year lock-in. Both excellent for retirement.
Can I withdraw before 60?
Partial withdrawal allowed after 3 years for specific purposes (medical, child education). Premature exit: 80% mandatory to annuity, only 20% lumpsum.
What annuity providers?
PFRDA-empaneled insurers: LIC, HDFC Life, ICICI Prudential, SBI Life, Birla Sun Life, etc. Choose at maturity based on rates and pension type.
NPS for self-employed?
Yes — Tier I for any Indian citizen 18-65 years. Contributions deductible under 80CCD(1) up to 20% of gross income (max ₹1.5L) plus ₹50K under 80CCD(1B).