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HomeFinanceNPS Calculator
Finance

NPS Calculator

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Calculate National Pension System corpus and monthly pension at age 60. 80CCD tax savings, equity allocation, growth chart, and NPS vs PPF comparison — free and instant.

80CCD(1B)Age 60 MaturityNPS vs PPFFree

How to Use

Step-by-step guide to get the most from this tool

  1. 1

    Enter age and contribution

    Set current age (18–60) and monthly NPS contribution. Retirement is fixed at age 60.

  2. 2

    Set return and allocation

    Choose expected return and equity allocation (0–75%). Remaining splits between corporate bonds and govt securities.

  3. 3

    Adjust annuity rate

    Set annuity yield for pension estimate (default 6% p.a.).

  4. 4

    Review results

    See corpus, 60/40 withdrawal split, estimated monthly pension, tax savings, growth chart, and PPF comparison.

Features

What makes this tool stand out

🏛️

80CCD tax savings

80CCD(1B) benefit card when contribution qualifies.

📊

Corpus growth chart

Line chart from current age to 60.

💰

60/40 maturity split

Lump sum vs annuity per NPS rules.

📈

Asset allocation

Equity slider with auto C/G split.

⚖️

NPS vs PPF

Side-by-side comparison at same monthly investment.

🇮🇳

India 2025-26 rules

Verified NPS limits, tax sections, and withdrawal rules.

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🏛️
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🧾
Income Tax Calculator
Old vs new regime tax

Frequently Asked Questions

Quick answers to common questions

What is NPS?+

National Pension System (NPS) is a government-backed retirement savings scheme in India. Tier 1 is mandatory with tax benefits; Tier 2 is optional with no lock-in. You can invest in equity (E), corporate bonds (C), and government securities (G).

How is NPS corpus calculated?+

Your monthly contributions compound at the expected annual return until age 60. We use monthly compounding: each deposit grows for the remaining months. The calculator shows year-by-year corpus growth from your current age to 60.

What tax benefits does NPS offer?+

Under the old regime: Section 80CCD(1) allows up to ₹1.5 lakh (within 80C), plus an additional ₹50,000 under 80CCD(1B). Employer contribution under 80CCD(2) — up to 10% of salary — is available in the new regime too. Total possible exclusive NPS deduction: ₹2 lakh (1.5L + 50K).

What happens at NPS maturity?+

At age 60, you can withdraw up to 60% of the corpus tax-free as lump sum. At least 40% must be used to buy an annuity for monthly pension (taxable as income). If corpus is below ₹5 lakh, 100% withdrawal is allowed.

What return rate should I use for NPS?+

NPS equity funds have historically returned 10–13% CAGR over long periods. Corporate bonds yield ~8–9% and government securities ~7–8%. Adjust the equity allocation slider to see a weighted return estimate, or set your own expected return.

How is monthly pension estimated?+

We apply the annuity yield (default 6% p.a., editable) to the 40% annuity corpus and divide by 12. Actual pension depends on the annuity product, insurer, and purchase rates at retirement.

Is NPS better than PPF?+

NPS offers higher return potential through equity but mandates 40% annuity purchase at maturity. PPF is risk-free at 7.1% p.a. with fully tax-free, withdrawable maturity. Use the NPS vs PPF tab to compare the same monthly investment.

Who can join NPS?+

Indian citizens aged 18 to 70 can open an NPS account. For corpus projection to retirement, we assume withdrawal at age 60 — the standard NPS maturity age for Tier 1.

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Retirement at age 60 · 32 years to go

NPS equity funds historically returned 10–13% CAGR. Allocation-weighted estimate: 9.5%

E 50%C 25%G 25%

Max 75% equity. Remaining split equally between corporate bonds (C) and govt securities (G).

Current market annuity rates are around 6% p.a. Pension income from annuity is taxable.

Corpus = P × [((1 + r)^n − 1) / r] × (1 + r)

P is your monthly NPS contribution, r is the monthly return rate (annual return ÷ 12), and n is the number of months until age 60. At maturity, up to 60% can be withdrawn tax-free; at least 40% must buy an annuity for monthly pension. If corpus is below ₹5 lakh, 100% withdrawal is allowed.

SymbolMeaning
PMonthly NPS contribution
rMonthly return rate (annual return ÷ 12)
nMonths until retirement (60 − current age) × 12
Total NPS Corpus at 60
₹1,40,41,677
Contributed ₹19,20,000 · Gains ₹1,21,21,677
Lump Sum (60%, tax-free)
₹84,25,006
Annuity Corpus (40%)
₹56,16,671
Estimated Monthly Pension
₹28,083
Based on 6% annuity yield on 40% corpus
Tax Savings (Old Regime)

Max 80CCD(1B) benefit: ₹50,000 deduction

Annual tax saving (30% slab): ₹15,000

Additional ₹50,000 under 80CCD(1B) is over and above the ₹1.5L 80C limit. Employer contribution under 80CCD(2) is available in the new regime too.

Corpus Growth to Age 60