NPS Calculator

Plan your retirement with the National Pension System. Calculate your expected corpus, tax-free lump sum, and monthly pension at age 60.

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Retirement Corpus (Age 60)

Total Invested

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Est. Returns

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Total Corpus

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Withdrawal Plan

Tax-free Lump Sum (60%)

Amount you can withdraw

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Nominal Monthly Pension

Future value at age 60

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Inflation-Adjusted Pension

True purchasing power in today's money

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Mastering NPS Investing

Building a secure retirement requires consistent saving and taking advantage of retirement-focused accounts like the National Pension System (NPS). However, be aware of recent tax changes: If you opt for the Old Tax Regime, NPS provides an exclusive ₹50,000 tax deduction under Section 80CCD(1B), saving you up to ₹15,600 annually in the 30% bracket. If you use the New Tax Regime (the default for most), this ₹50,000 deduction is NO LONGER available. Only employer contributions (up to 14% of basic salary) remain tax-exempt under the new regime.

Tier I vs Tier II Accounts

The NPS comes with two account types. The Tier I account is the mandatory retirement account with strict lock-in rules until age 60. The Tier II account is a voluntary investment account with no lock-in (you can withdraw anytime), but it offers no tax benefits whatsoever.

The 60/40 Rule at Maturity

NPS is unique because of what happens when you turn 60. You are allowed to withdraw a maximum of 60% of your corpus completely tax-free. You are forced by law to use the remaining 40% to buy an annuity (a fixed pension product) from a life insurance company. While the annuity guarantees a monthly payout for life, the returns are typically low (~5.5% to 6.5%), and the monthly pension is taxable as per your income slab.

How to Use This Calculator

1

Adjust the inputs

Use the sliders or text boxes to enter your specific financial numbers.

2

Review the charts

The interactive charts will update immediately, showing a visual breakdown of your investments and returns.

3

Analyze the results

Look at the summary cards and tables to understand your total invested amount, estimated returns, and final corpus.

Frequently Asked Questions

What is the National Pension System (NPS)?

NPS is a voluntary, long-term retirement savings scheme managed by the PFRDA and Government of India. It allows you to invest in a mix of equity, corporate bonds, and government securities to build a retirement corpus.

How much tax can I save with NPS?

If you opt for the Old Tax Regime, NPS offers an exclusive additional tax deduction of ₹50,000 under Section 80CCD(1B). However, under the default New Tax Regime, this ₹50,000 deduction is no longer available, and only employer contributions remain tax-exempt.

What happens at maturity (Age 60) in NPS?

At age 60, you can withdraw up to 60% of your total accumulated corpus completely tax-free as a lump sum. The remaining 40% MUST be used to purchase an Annuity plan, which provides a regular monthly pension that is taxable as per your income slab.

Can I withdraw money from NPS before age 60?

NPS is highly illiquid by design. You can make partial withdrawals up to 25% of your own contributions for specific reasons (children's education, marriage, house purchase, critical illness) after completing 3 years. Premature exit before 60 requires 80% to go to annuity.