NPS Calculator

What is NPS?

The National Pension System (NPS) is a government-backed retirement scheme in India. You open an NPS account (Tier I is the main pension account), contribute regularly, and your money is invested in a mix of equity and debt as per your choice. At 60, you can withdraw up to 60% of the corpus as tax-free lump sum; the remaining 40% must be used to buy an annuity (pension) from an insurer. NPS offers tax benefits under 80C and 80CCD(1B), and the corpus grows in a tax-efficient manner. This calculator helps you project how much you might accumulate by 60 based on your monthly contribution and expected return, and shows a simplified split of lump sum (40%) and annuity (60%) for illustration—actual rules allow up to 60% lump sum and at least 40% annuity.

NPS is popular among salaried individuals and self-employed who want a low-cost, long-term retirement product. Returns are not guaranteed; they depend on the fund manager and asset allocation. Use this tool to set a contribution target and to see the impact of starting early and of different return assumptions.

Formula

The projected corpus at 60 is the future value of your monthly contributions (SIP) from now until age 60, at the expected annual return. The formula is the same as SIP maturity: FV = Monthly × [((1+r)^n − 1) / r] × (1+r), where r is the monthly rate and n is the number of months until 60. This calculator uses that logic. At exit, current rules allow up to 60% lump sum (tax-free) and at least 40% annuity. We show 40% lump sum and 60% annuity as a conservative illustration; check PFRDA for the latest withdrawal rules.

Example calculation

You are 30 years old, contribute ₹5,000 per month to NPS, and expect 10% p.a. return. You have 30 years until 60. The projected corpus at 60 is approximately ₹1.13 crore. Total invested over 30 years = ₹18 lakh. If we apply a 40% lump sum and 60% annuity split: lump sum ≈ ₹45 lakh, annuity portion ≈ ₹68 lakh (used to buy pension). Use the calculator above with your age, monthly contribution, and expected return to get your projection. Actual corpus will depend on real returns and any change in contribution; use it for planning only.

Benefits of Using This Calculator

An NPS calculator helps you plan retirement savings by showing the projected corpus at 60 for your chosen monthly contribution and return. You can see how increasing contribution or expecting a higher return affects the corpus, and how much might be available as lump sum vs annuity. Use it to set a monthly contribution goal and to compare with other products like PPF or mutual funds. The tool is free and requires no sign-up.

Remember that NPS returns are market-linked and not guaranteed. Use a conservative return assumption (e.g. 8–10%) for long-term planning. Check PFRDA and your NPS statement for actual balance and rules.

How to Use This Calculator

Enter your monthly NPS contribution, your current age, and the expected annual return (%). The calculator assumes retirement at 60 and projects the corpus at that age. It then shows a simplified 40% lump sum and 60% annuity split (actual rules allow up to 60% lump sum). Adjust the inputs to see how more contribution or a higher return increases the corpus. Use it for planning; actual results depend on real returns and NPS rules.

For exact withdrawal rules and tax treatment, refer to PFRDA and a tax advisor. This calculator is for illustration only and does not replace official NPS statements or advice.

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