NPS Calculator
Calculate your National Pension System corpus and estimate your monthly pension after retirement. Plan your retirement with our comprehensive NPS calculator.
Wealth Growth Summary
Your investment of ₹0 will grow to ₹0
Growth: 0% 📈
🏛️What is National Pension System (NPS)?
NPS is a voluntary, long-term retirement savings scheme backed by the Government of India. It helps you build a retirement corpus through systematic investments and provides both lumpsum withdrawal and regular pension income after retirement. NPS offers tax benefits and professional fund management to grow your retirement savings.
🔢NPS Calculation Breakdown
1. Corpus Accumulation (SIP-based)
Your monthly contributions grow using compound interest over the investment period. The calculation uses the same formula as SIP investments to determine your total corpus at retirement.
2. Maturity Distribution
At retirement, you can withdraw up to 60% as lumpsum (tax-free). The remaining amount (minimum 40%) must be used to purchase an annuity for regular pension income.
3. Monthly Pension Calculation
The annuity amount generates monthly pension based on the annuity return rate. This provides you with regular income throughout your retirement years.
💡Key Benefits of NPS
Tax Benefits
Deductions under Section 80C (₹1.5L) and additional 80CCD(1B) (₹50K)
Professional Management
Choose from multiple fund managers and investment options
Flexibility
Portable across jobs and allows partial withdrawals for specific needs
Government Backing
Regulated by PFRDA and backed by Government of India
Mathematical Formula
1. Investment Duration
2. Maturity Corpus (Future Value)
Where:
- P = Monthly Contribution
- r = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
- n = Total Number of Months (Duration × 12)
3. Annuity and Lumpsum Distribution
4. Monthly Pension
Example Calculation
Given:
- Monthly Contribution: ₹5,000
- Current Age: 30 years
- Retirement Age: 60 years
- Expected Return: 10% p.a.
- Annuity Purchase: 40%
- Annuity Return: 6% p.a.
Results:
- Investment Duration: 30 years
- Total Invested: ₹18,00,000
- Maturity Corpus: ₹1,13,04,324
- Lumpsum: ₹67,82,594
- Annuity: ₹45,21,730
- Monthly Pension: ₹22,609
Q1: What is NPS?
A1: NPS (National Pension System) is a voluntary retirement savings scheme backed by the Government of India. It helps you build a retirement corpus through systematic investments and provides both lumpsum withdrawal and regular pension income after retirement.
Q2: Is NPS return guaranteed?
A2: No, NPS returns depend on the market performance of your chosen fund manager. However, NPS offers professional fund management and diversified investment options to optimize returns while managing risk.
Q3: How much of the NPS amount can I withdraw?
A3: You can withdraw up to 60% of the maturity amount as a lump sum (tax-free). At least 40% must be used to buy an annuity for regular pension income. This ensures you have guaranteed income during retirement.
Q4: Is NPS taxable?
A4: Contributions qualify for tax benefits under Section 80C (up to ₹1.5 lakh) and additional deduction under Section 80CCD(1B) (up to ₹50,000). The lumpsum withdrawal up to 60% is tax-free, while pension income is taxable.
⚠️Important Note
This calculator provides estimates based on the inputs provided. Actual returns may vary depending on market conditions, fund performance, and policy changes. Please consult with a financial advisor for personalized retirement planning advice.