NPS Calculator
Calculate your retirement corpus from National Pension Scheme. Estimate returns, tax benefits, and pension annuity with this comprehensive NPS calculator.
NPS Investment Details
Tax Benefits Summary
NPS Withdrawal Rules
Partial Withdrawal
Up to 25% of contributions allowed after 3 years for specific purposes
Early Exit
After 10 years: 80% annuity purchase mandatory, 20% lump sum tax-free
Normal Exit
At 60: Minimum 40% annuity purchase, up to 60% lump sum withdrawal
Premature Exit
Before 60: 80% annuity purchase mandatory, 20% lump sum withdrawal
Yearly Growth Projection
| Age | Contribution | Cumulative | Corpus | Growth |
|---|
NPS vs Other Retirement Options
| Feature | NPS | PPF | EPF | Mutual Funds |
|---|---|---|---|---|
| Equity Exposure | Up to 75% | None | None | Up to 100% |
| Tax Benefit 80C | ₹1.5L + ₹50K | ₹1.5L | ₹1.5L | ELSS only |
| Withdrawal Flexibility | Restricted | After 15 years | On job change | Anytime |
| Pension Annuity | Mandatory | No | No | No |
| Expected Returns | 9-12% | 7.1% | 8.15% | 12-15% |
NPS Investment Strategy
Start NPS early for maximum compounding benefit. Use auto allocation for age-appropriate risk management. Claim additional ₹50,000 tax benefit under 80CCD(1B).
Key Benefits of NPS
Extra Tax Benefit
Additional ₹50,000 deduction under Section 80CCD(1B) over and above ₹1.5 lakhs under 80C.
Market-Linked Returns
Higher returns potential through equity exposure (up to 75%) compared to traditional pension plans.
Low Cost Structure
One of the lowest cost pension schemes with fund management charges as low as 0.01%.
Complete Transparency
Real-time tracking, online access, and complete transparency of investments and NAVs.
About National Pension Scheme (NPS)
The National Pension Scheme (NPS) is a government-sponsored pension scheme that helps you save for retirement. It offers market-linked returns, tax benefits, and flexibility in investment choices. The calculator helps you estimate your retirement corpus based on your contributions, expected returns, and investment horizon.
How NPS Works
Account Opening
Open NPS account through POP (Point of Presence) or online. Choose between Tier I (mandatory pension account) and Tier II (voluntary savings account).
Contribution & Investment
Make regular contributions (minimum ₹500 per month). Your money gets invested in equity (E), corporate bonds (C), and government securities (G) based on your chosen allocation.
Accumulation Phase
Your investment grows over time through market returns. You can increase contributions, change allocation, or switch fund managers as needed.
Withdrawal & Annuity
At age 60, withdraw up to 60% lump sum (tax-free) and use minimum 40% to purchase annuity for regular pension income.
NPS Tax Benefits
Section 80CCD(1)
Deduction up to 10% of salary (basic + DA) or 20% of gross income for self-employed, within overall 80C limit of ₹1.5 lakhs.
Section 80CCD(1B)
Additional deduction of ₹50,000 exclusively for NPS, over and above ₹1.5 lakhs limit of 80C.
Section 80CCD(2)
For salaried employees, employer's contribution up to 10% of salary (basic + DA) is tax-free, over and above ₹1.5 lakhs limit.
Tax-Free Withdrawal
Up to 60% of corpus withdrawn at maturity is tax-free. Remaining 40% used for annuity purchase is also tax-free.
Asset Allocation Options
| Asset Class | Symbol | Risk Level | Returns Potential | Maximum Allocation |
|---|---|---|---|---|
| Equity | E | High | 12-15% | 75% (age < 50) 50% (age 50+) |
| Corporate Bonds | C | Medium | 8-10% | 100% |
| Government Securities | G | Low | 7-8% | 100% |
| Alternative Assets | A | High | 10-12% | 5% |
Who Should Invest in NPS?
Salaried Employees
Ideal for additional retirement savings beyond EPF. Get extra tax benefits and higher equity exposure.
Self-Employed Professionals
Perfect for retirement planning with tax benefits. No employer pension plan available.
Young Investors (20-35)
Best time to start for maximum compounding benefit. Can take higher equity exposure for growth.
Tax Savers in 30% Slab
Additional ₹50,000 deduction saves ₹15,600 tax annually. Higher benefit for high-income earners.