NPS Calculator
Plan your NPS retirement corpus. Enter monthly contribution, expected annual return, and investment period to see your total accumulated corpus, lump-sum payout, and estimated monthly pension.
NPS Details
Annual: ₹1.2 Lakh · Total over 25 yr: ₹30 Lakh
Historical NPS equity funds: 9–12% p.a.
Total NPS Corpus
₹1.34 Crore
25 yr · 10% p.a.
Total Contributed
₹30,00,000
Investment Growth
₹1,03,78,903
Total Corpus
₹1,33,78,903
At Retirement
Corpus Growth over Time
Year-by-Year Corpus
| Year | Total Contributed | Projected Corpus |
|---|---|---|
| Year 1 | ₹1,20,000 | ₹1,26,703 |
| Year 2 | ₹2,40,000 | ₹2,66,673 |
| Year 3 | ₹3,60,000 | ₹4,21,300 |
| Year 4 | ₹4,80,000 | ₹5,92,118 |
| Year 5 | ₹6,00,000 | ₹7,80,824 |
| Year 6 | ₹7,20,000 | ₹9,89,289 |
| Year 7 | ₹8,40,000 | ₹12,19,583 |
| Year 8 | ₹9,60,000 | ₹14,73,993 |
| Year 9 | ₹10,80,000 | ₹17,55,042 |
| Year 10 | ₹12,00,000 | ₹20,65,520 |
| Year 11 | ₹13,20,000 | ₹24,08,510 |
| Year 12 | ₹14,40,000 | ₹27,87,415 |
| Year 13 | ₹15,60,000 | ₹32,05,997 |
| Year 14 | ₹16,80,000 | ₹36,68,409 |
| Year 15 | ₹18,00,000 | ₹41,79,243 |
| Year 16 | ₹19,20,000 | ₹47,43,567 |
| Year 17 | ₹20,40,000 | ₹53,66,983 |
| Year 18 | ₹21,60,000 | ₹60,55,679 |
| Year 19 | ₹22,80,000 | ₹68,16,491 |
| Year 20 | ₹24,00,000 | ₹76,56,969 |
| Year 21 | ₹25,20,000 | ₹85,85,457 |
| Year 22 | ₹26,40,000 | ₹96,11,169 |
| Year 23 | ₹27,60,000 | ₹1,07,44,287 |
| Year 24 | ₹28,80,000 | ₹1,19,96,057 |
| Year 25 | ₹30,00,000 | ₹1,33,78,903 |
How It Works
The National Pension System (NPS) is a government-regulated voluntary retirement savings scheme open to all Indian citizens aged 18–70. You invest monthly until retirement (age 60). On maturity, NPS mandates that at least 40% of the corpus must be used to purchase an annuity (which gives you a monthly pension); you receive the remaining 60% as a tax-free lump sum. If total corpus is under ₹5 lakh, you can withdraw the full amount. NPS contributions are eligible for tax deduction under 80CCD(1) up to ₹1.5L, and an additional ₹50,000 under 80CCD(1B) — making it one of the best tax-saving instruments for salaried individuals.
NPS Corpus Formula
NPS Corpus = C × [(1 + r/12)^(12×t) − 1] / (r/12) × (1 + r/12), where C = monthly contribution, r = annual return/100, t = years. Pension = 40% corpus × annuity rate / 12.
Example: ₹10,000/month at 10% p.a. for 25 years → Corpus ≈ ₹1.33 Cr. Lump sum (60%): ≈ ₹80L tax-free. Annuity (40%) at 6% → ≈ ₹26,600/month pension.
Tax benefit: ₹10,000/month = ₹1.2L/year eligible under 80CCD(1B) — saving ₹37,440/year in tax (at 31.2% bracket including cess).
NPS at a Glance
- Eligibility
- Indian citizens aged 18–70 (incl. NRIs)
- 80CCD(1B)
- Extra ₹50,000 deduction beyond 80C limit
- At retirement (60)
- 60% tax-free lump sum + 40% compulsory annuity
- Partial withdrawal
- Up to 25% after 3 years (specific purposes)
- Regulator
- PFRDA (Pension Fund Regulatory and Development Authority)
Frequently Asked Questions
What is NPS and who can invest?
NPS (National Pension System) is a government-backed retirement savings scheme regulated by PFRDA. It is open to all Indian citizens aged 18–70, including NRIs. Both Tier I (retirement account with lock-in) and Tier II (flexible withdrawal) accounts are available. Tier I contributions qualify for tax deductions; Tier II does not.
How are NPS returns calculated?
NPS invests in a mix of equities, corporate bonds, and government securities based on the chosen fund and lifecycle plan. Returns are market-linked — historical NPS equity funds have returned 9–12% p.a. over long periods. Our calculator uses a fixed assumed return rate that you set, making it a projection tool rather than a guarantee.
What is the 40% annuity rule at maturity?
At retirement (age 60), at least 40% of your NPS corpus must be used to buy an annuity from an IRDAI-approved insurer, which pays you a regular monthly pension for life. The remaining 60% is a tax-free lump sum withdrawal. If your total corpus is below ₹5 lakh, you can withdraw 100% as a lump sum.
What tax benefits does NPS offer?
NPS offers triple tax benefits: (1) 80CCD(1): up to ₹1.5L/year deductible (within the 80C limit); (2) 80CCD(1B): additional ₹50,000/year deductible, over and above 80C; (3) 60% lump sum at maturity is fully tax-free. The annuity income is taxable. Employer contribution (up to 10% of Basic+DA) is also deductible under 80CCD(2) without any ceiling.
What is the expected return on NPS?
NPS returns depend on the asset allocation (Equity/E, Corporate Bonds/C, Government Bonds/G). Historically: NPS equity funds have returned 9–12% p.a.; corporate bond funds 8–9%; government bond funds 7–8%. A balanced auto-choice lifecycle fund might target 8–10% p.a. over 20–30 years. These are projections — actual returns vary with market conditions.
Can I exit NPS before 60?
Partial withdrawal (up to 25% of own contributions) is allowed after 3 years for specific purposes (children's education, marriage, home purchase, critical illness). Full premature exit before 60 requires 80% of the corpus to be used for annuity purchase, with only 20% as lump sum. After 60, you can defer withdrawal until age 75.