NPS Calculator
Estimate your retirement corpus and monthly pension from National Pension System (NPS) investments.
Yes: 60% lumpsum + 40% annuity | No: 100% annuity (higher pension)
NPS Calculator – National Pension System Calculator
An NPS Calculator helps you estimate the retirement corpus and potential pension you can generate by investing regularly in the National Pension System (NPS).
NPS is a government-backed retirement savings scheme designed to provide long-term financial security after retirement. Contributions made during the working years grow through market-linked investments and provide a mix of lump sum and regular pension income at retirement.
What Is an NPS Calculator?
An NPS Calculator is an online tool that estimates the future value of your NPS investments based on your contribution amount, investment duration, and expected rate of return.
- Total investment made over the contribution period
- Estimated retirement corpus
- Expected lump sum withdrawal at retirement
- Estimated monthly pension through annuity
This calculator provides indicative projections based on commonly used assumptions. Actual returns may vary depending on market performance and annuity rates.
How Does the NPS Calculator Work?
The NPS Calculator estimates retirement benefits using inputs such as:
- Current age and retirement age
- Monthly or annual contribution amount
- Expected annual rate of return
- Annuity purchase percentage at retirement
Note: The calculator does not account for fund management charges, tax changes, or annuity rate variations.
NPS Calculation Example
Let’s understand how NPS works with a simple retirement planning example.
- Current Age: 30 years
- Retirement Age: 60 years
- Monthly Contribution: ₹5,000
- Expected Return: 10% per annum
- Annuity Allocation at Retirement: 40%
Total Investment: ₹18,00,000
Estimated Retirement Corpus: ₹1.05 crore (approx.)
Lump Sum Withdrawal (60%): ₹63 lakh (approx.)
Estimated Monthly Pension: ₹17,000–18,000 (approx.)
Result: NPS helps create a disciplined retirement corpus along with a steady pension income after retirement.
Frequently Asked Questions (FAQs)
What is NPS?
The National Pension System (NPS) is a government-sponsored retirement savings scheme that helps individuals build a pension corpus through regular contributions.
Who can invest in NPS?
Any Indian citizen between 18 and 70 years of age can invest in NPS, including salaried individuals and self-employed professionals.
Is NPS a market-linked investment?
Yes. NPS investments are market-linked and invested across equity, corporate bonds, and government securities.
How much can I withdraw at retirement?
At retirement, up to 60% of the corpus can be withdrawn as a lump sum, while at least 40% must be used to purchase an annuity for pension.
Is NPS tax-free?
NPS offers tax benefits under applicable sections of the Income Tax Act. Tax treatment of withdrawals and annuity income depends on prevailing tax rules.
Does NPS guarantee returns?
No. NPS returns are market-linked and not guaranteed. The calculator provides estimated projections based on assumed returns.
Is the NPS Calculator accurate?
The calculator provides indicative estimates based on standard assumptions. Actual returns and pension may vary due to market performance and annuity rates.