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NPS Calculator

Years
Years
₹
%
%
Maturity Value₹1,13,96,627

Total Corpus at Retirement

₹1,13,96,627

After 30 years of investment

Total Investment

₹18,00,000

Total Returns

₹95,96,627

Lump Sum Withdrawal

₹68,37,976

60% of corpus

Annuity Investment

₹45,58,651

40% for pension

NPS Calculator — Overview

An NPS Calculator helps you plan your retirement by estimating the corpus you can accumulate through the National Pension System (NPS). By entering your monthly contribution, current age, expected retirement age, and expected rate of return, the calculator projects your total wealth at retirement.

It also breaks down the corpus into the lump sum withdrawal and the annuity portion that will generate your monthly pension, helping you make informed decisions about your retirement planning.

How is it calculated?

Enter your current age, retirement age, monthly contribution, and expected rate of return. The calculator uses the future value of annuity formula to project your corpus:


FV = P x [((1 + r)^n - 1) / r] x (1 + r)


Where P = monthly contribution, r = monthly rate of return, n = total months until retirement.


Set the annuity percentage (minimum 40%) to see how your corpus splits between lump sum withdrawal and annuity investment.

Frequently Asked Questions

The minimum contribution for NPS Tier I is Rs 500 per contribution and a minimum of Rs 1,000 per year. There is no maximum limit on contributions, making it flexible for all income levels.

At retirement, you can withdraw up to 60% of your accumulated corpus as a tax-free lump sum. The remaining 40% (minimum) must be used to purchase an annuity that provides your monthly pension.

NPS offers several advantages including low expense ratios, tax benefits under Section 80CCD, professional fund management, and flexible asset allocation. It is one of the most cost-effective retirement planning tools in India.

NPS contributions qualify for tax deductions: up to Rs 1.5 lakh under Section 80CCD(1) within the 80C limit, and an additional Rs 50,000 under Section 80CCD(1B). The lump sum withdrawal of up to 60% at maturity is also tax-free.

NPS returns are market-linked and vary by asset class. Historically, NPS has delivered returns of 9% to 12% per annum over long periods. Equity funds tend to give higher returns while government bonds provide more stability.

An annuity is a financial product that provides a guaranteed regular income (monthly pension) in exchange for a lump sum investment. In NPS, at retirement you must invest at least 40% of your corpus in an annuity plan from an empanelled insurance company. The annuity rate and type (e.g., annuity for life, annuity with return of purchase price, joint life annuity) determine the monthly pension amount you will receive for the rest of your life.

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