NPS Calculator

An NPS (National Pension System) calculator is a specialized tool designed to help you estimate the total maturity corpus and the potential monthly pension you will receive at age 60. NPS is a government-backed, voluntary retirement savings scheme regulated by PFRDA, and our calculator helps you visualize how regular contributions and compound interest build a secure retirement fund.

NPS offers an exclusive tax benefit where you can claim a deduction of up to ₹50,000 under Section 80CCD(1B). This is in addition to the ₹1.5 lakh limit available under Section 80C. For many investors, this makes NPS one of the most powerful tax-saving instruments for long-term retirement goals.

To ensure that retirees have a steady source of income, PFRDA rules mandate that at least 40% of the accumulated corpus at age 60 must be used to purchase an annuity plan. The remaining 60% can be withdrawn as a tax-free lumpsum, providing a perfect balance between immediate liquidity and long-term financial security.

Unlike the fixed interest rates of EPF or PPF, NPS returns are market-linked. Your money is invested across Equity (E), Corporate Bonds (C), and Government Securities (G). Historically, a balanced NPS portfolio has delivered 10-12% annual returns, often outperforming traditional retirement schemes over decades.

Yes, you should ideally increase your NPS contribution annually to build a larger corpus. This calculator allows you to experiment with different contribution levels to see how an extra ₹1,000 or ₹2,000 per month can exponentially increase your final pension amount due to the multi-decade compounding effect.

The estimated monthly pension is calculated based on the portion of your corpus used to buy an annuity. Our calculator applies an estimated annuity rate (typically 5-7%) to that corpus. For example, a ₹50 lakh annuity corpus at a 6% rate will yield approximately ₹25,000 per month as a lifetime pension for the subscriber.