Free NPS Calculator
Estimate your National Pension Scheme corpus and plan for retirement
Retirement Projections
Important Points About NPS
- Compounding Effect: Long-term contributions generally benefit from compounding.
- Asset Allocation: NPS allows allocation across equity, corporate debt, and government securities.
- Contributions: Contribution amounts can be changed over time as per individual preference.
- Tax Provisions: NPS offers tax benefits under Sections 80CCD(1), 80CCD(1B), and 80CCD(2) as per current rules.
- Periodic Review: Fund performance and allocation options can be reviewed periodically.
Note: This calculator provides estimates only. Actual returns depend on market performance, government policies, and annuity rates. Consult a financial advisor before making decisions.
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What Is NPS?
The National Pension System (NPS) is a government-regulated, market-linked retirement savings scheme open to all Indian citizens aged 18–70. It is managed by the Pension Fund Regulatory and Development Authority (PFRDA) and lets you invest monthly in a mix of equity, corporate bonds, and government securities — with the corpus growing over your working years.
At retirement (age 60), you can withdraw up to 60% of the total corpus as a tax-free lump sum. The remaining 40% — minimum — must be used to purchase an annuity plan from a registered insurer, which pays you a fixed monthly pension for life. NPS is one of the few retirement instruments in India that offers both market-linked growth potential and a guaranteed pension stream.
NPS Corpus Projection — What You Can Expect at Retirement
Assumes 10% annual return (equity-heavy allocation), retirement at age 60. Lump sum = 60% of corpus, annuity = 40% at 6% annuity rate.
| Start Age | Monthly Contribution | Years Invested | Total Invested | Corpus at 60 | Lump Sum (60%) | Monthly Pension |
| 25 | ₹2,000 | 35 | ₹8,40,000 | ₹76,30,548 | ₹45,78,329 | ₹15,261 |
| 25 | ₹5,000 | 35 | ₹21,00,000 | ₹1,90,76,369 | ₹1,14,45,821 | ₹38,153 |
| 25 | ₹10,000 | 35 | ₹42,00,000 | ₹3,81,52,739 | ₹2,28,91,643 | ₹76,305 |
| 30 | ₹5,000 | 30 | ₹18,00,000 | ₹1,13,02,435 | ₹67,81,461 | ₹22,605 |
| 30 | ₹10,000 | 30 | ₹36,00,000 | ₹2,26,04,871 | ₹1,35,62,922 | ₹45,210 |
| 35 | ₹5,000 | 25 | ₹15,00,000 | ₹66,58,352 | ₹39,95,011 | ₹13,317 |
| 35 | ₹10,000 | 25 | ₹30,00,000 | ₹1,33,16,705 | ₹79,90,023 | ₹26,633 |
| 40 | ₹10,000 | 20 | ₹24,00,000 | ₹75,93,693 | ₹45,56,216 | ₹15,187 |
Starting at 25 vs 35 with the same ₹5,000/month: corpus difference is ₹1.90 crore vs ₹66 lakh — a 3x gap from just 10 more years of compounding. Starting early is the single biggest lever in NPS.
NPS Tax Benefits — How Much Can You Actually Save?
NPS offers tax deductions under three separate sections — making it one of the most tax-efficient retirement instruments available. Here is exactly what applies:
| Section | Who Can Claim | Deduction Limit | Part of 80C? | Tax Saved (30% slab) |
| 80CCD(1) | All NPS subscribers | 10% of salary (employed) or 20% of gross income (self-employed) — subject to overall 80C limit of ₹1.5L | Yes — within ₹1.5L | Up to ₹46,800 |
| 80CCD(1B) | All NPS subscribers | Additional ₹50,000 over and above 80C limit | No — separate benefit | ₹15,600 |
| 80CCD(2) | Salaried employees | Employer contribution — up to 10% of (Basic + DA) for private sector; 14% for central govt employees | No — completely extra | Depends on employer contribution |
The most valuable section for most people is 80CCD(1B) — an extra ₹50,000 deduction completely separate from the ₹1.5 lakh 80C limit. At the 30% tax slab, this saves ₹15,600 per year (₹18,720 including 4% cess). This alone makes NPS worth considering even if your 80C is already maxed out with PF, ELSS, or LIC.
Example: Annual salary ₹12 lakh, 30% slab. Employer contributes ₹60,000/year to NPS (10% of basic). You contribute ₹50,000 under 80CCD(1B). Total extra deduction = ₹1,10,000. Tax saved = ₹34,320 (including cess).
How to Use This Calculator
- Enter Monthly Contribution — your planned or current NPS contribution per month
- Enter Current Age — your age today; the calculator uses years remaining until retirement
- Enter Retirement Age — default is 60, the standard NPS maturity age; can go up to 75 if you defer
- Enter Expected Rate of Return — 8% for conservative (mostly debt), 10% for balanced, 12% for aggressive (high equity)
- Set Annuity Percentage — minimum 40% must go into annuity; you can increase this for a higher monthly pension
- Enter Annuity Rate — current annuity rates from NPS-empanelled insurers range from 5.5% to 7%; use 6% as a reasonable estimate
- Results show instantly — Total Corpus, Lump Sum, Amount for Annuity, and Monthly Pension
Tip: Run two scenarios — one at 10% return and one at 8% — to see the range. NPS equity funds have delivered 12–14% historically but 10% is a safer planning assumption.
NPS vs EPF vs PPF — Which Retirement Option Is Right for You?
Most salaried Indians have access to all three. Here is how they compare across the factors that matter most for retirement planning:
| Factor | NPS | EPF | PPF |
| Returns | Market-linked, 9–12% equity avg | Fixed, ~8.25% (FY25) | Fixed, 7.1% (FY25) |
| Risk | Medium — market risk on equity | Zero — government set | Zero — government set |
| Who can invest | All citizens 18–70 | Salaried employees only | All citizens |
| Lock-in | Until age 60 (strict) | Until retirement / 5yr | 15 years, partial after 7yr |
| Tax on maturity | 60% lump sum tax-free; pension taxable | Fully tax-free (5yr+ service) | Fully tax-free |
| Pension guarantee | Yes — annuity gives monthly pension | No pension stream | No pension stream |
| Max tax deduction | ₹2L+ (80C + 80CCD1B + 80CCD2) | ₹1.5L (within 80C) | ₹1.5L (within 80C) |
| Best for | Pension + high deduction seekers | Mandatory for salaried | Safe long-term savings |
EPF is mandatory for most salaried employees — so you already have it. The real question is whether to add NPS on top. If you are in the 30% tax slab and your 80C is already full, the extra ₹50,000 deduction under 80CCD(1B) alone makes NPS worth contributing to. If you want a guaranteed pension stream in retirement — something EPF and PPF do not offer — NPS is the only instrument that provides this.