NPS Calculator
Calculate NPS retirement corpus, lump sum amount and estimated monthly pension based on monthly contribution, age, expected return and annuity percentage.
Enter values and click Calculate Pension to see results
Formula
How to Use the NPS Calculator
Enter your monthly contribution, current age, expected retirement age, expected annual return and the percentage of corpus you plan to use for annuity (minimum 40% as per PFRDA rules). The calculator estimates your retirement corpus, the lump sum you can withdraw and your approximate monthly pension.
What Is NPS?
The National Pension System (NPS) is a government-sponsored retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It invests your contributions in a mix of equity, corporate bonds and government securities managed by professional fund managers.
NPS Calculation Formula
The corpus is the future value of monthly contributions compounded monthly:
FV = C × [((1 + r)n - 1) / r]
- C — Monthly contribution
- r — Monthly return rate (annual rate / 12)
- n — Total months until retirement
At retirement, at least 40% of the corpus must be used to buy an annuity. The estimated monthly pension assumes a 6% annuity rate.
NPS Tax Benefits
- Section 80CCD(1): Up to ₹1.5 lakh (within 80C limit) on employee contribution.
- Section 80CCD(1B): Additional ₹50,000 deduction (exclusive to NPS).
- Section 80CCD(2): Employer contribution up to 10% of salary (14% for government employees).
- 60% of corpus withdrawn as lump sum is tax-free at retirement.
NPS vs PPF vs SIP
NPS offers equity exposure with tax-efficient pension income. PPF is fully tax-free but limited to ₹1.5 lakh/year. SIP in mutual funds provides more flexibility but without the pension structure. Consider your EPF balance as well for a complete retirement picture.
Frequently Asked Questions
What is the minimum annuity in NPS?
At retirement, you must invest at least 40% of your NPS corpus in an annuity plan from an insurance company. The remaining 60% can be withdrawn tax-free.
Is this calculator free, and do I need to sign up?
Yes, it is completely free with no sign-up. There are no usage limits and no paywalls.
Are my inputs saved or sent to any server?
No. Every calculation happens entirely in your browser. Nothing you type is uploaded, logged, or shared with us or any third party.