NPS Calculator
Plan your retirement through the National Pension System
Basic Details
Contribution Details
Asset Allocation
Total allocation must equal 100%. Government Securities will automatically adjust.
NPS Projection
What is NPS?
The National Pension System (NPS) is a government-sponsored retirement scheme that helps you build a secure financial future. It's a defined contribution pension system where you can invest regularly during your working years, with the flexibility to choose your investment allocation across different asset classes.
Key Features
NPS contributions are invested across equity (up to 75%), corporate bonds, government securities, and alternative investments based on your chosen allocation. The scheme offers tax benefits, low management costs, and the option to switch investment patterns as per your risk appetite.
Benefits of NPS
- Additional tax deduction up to ₹50,000 under Sec 80CCD(1B)
- Market-linked returns with professional fund management
- Choice of pension fund managers and investment options
- Systematic investment for long-term wealth creation
Using the NPS Calculator
Use our calculator to estimate your retirement corpus by entering your monthly contribution, expected returns, and investment horizon. Understand how different asset allocations and contribution amounts can impact your final pension wealth.
How This NPS Calculator Works
Enter your current age, monthly contribution, expected returns, and retirement age. The calculator projects your NPS corpus at retirement, the mandatory annuity portion (40%), and the lump sum withdrawal amount. It also shows the effective tax benefit from NPS contributions under Section 80CCD.
NPS Tier I vs Tier II
Tier I is the primary retirement account with a lock-in until age 60 and full tax benefits. Tier II is a voluntary savings account with no lock-in and no tax benefits (except for government employees who get 80C benefit on Tier II). For retirement planning, always maximise Tier I contributions first.
Frequently Asked Questions
What is NPS?
The National Pension System (NPS) is a market-linked retirement savings scheme regulated by PFRDA. It invests in equities, government bonds, and corporate debt based on your chosen asset allocation. NPS offers an additional tax deduction of Rs 50,000 under Section 80CCD(1B), over and above the Rs 1.5 lakh limit of Section 80C.
How much tax can I save with NPS?
You can claim up to Rs 2 lakh in deductions: Rs 1.5 lakh under 80CCD(1) within the 80C limit, plus an additional Rs 50,000 under 80CCD(1B). For someone in the 30% tax bracket, this extra Rs 50,000 deduction saves Rs 15,600 (including cess) in taxes annually.
What happens to NPS at retirement?
At age 60, you must use at least 40% of the NPS corpus to purchase an annuity (pension). Up to 60% can be withdrawn as a lump sum, which is tax-free. The annuity income is taxable at your slab rate. You can also defer withdrawal until age 75.
Which NPS fund manager and allocation should I choose?
For long-term investors under 40, an aggressive allocation with 75% equity (Scheme E), 15% corporate bonds (Scheme C), and 10% government securities (Scheme G) has historically delivered the best returns. Top-performing fund managers include SBI Pension Funds, HDFC Pension, and ICICI Prudential Pension.
