NPS Calculator
Plan your retirement corpus and monthly pension with this easy National Pension System (NPS) calculator based on the latest rules and tax benefits.
This NPS calculator helps you estimate the retirement corpus you can build under India's National Pension System (NPS), the tax-free lump sum you may withdraw at retirement, and the monthly pension you could receive from the mandatory annuity portion. By adjusting inputs such as age, monthly contribution, investment tenure, expected rate of return, and annuity allocation, you can instantly see how small changes alter your long-term pension outcome.
The calculator also highlights potential tax deductions available under Sections 80C, 80CCD(1), 80CCD(1B), and 80CCD(2), helping you understand how NPS fits into an overall tax-saving and retirement strategy.
NPS Parameters
Equity: ~15% | Hybrid: ~12% | Corporate Bond: ~7% | Govt Securities: ~6.5%
Typical annuity rate: ~6.5% pre-tax
₹39,86,331
Total Invested
₹1,79,65,105
Total Corpus at Retirement
₹1,07,79,063
Lump Sum (60%)
Tax-free
₹35,930
Est. Monthly Pension
NPS Corpus Growth Over Time
NPS Tax Benefits Explained
Section 80CCD(1)
Up to 10% of salary (Basic + DA) is deductible within the overall ₹1.5L limit of Section 80C.
Section 80CCD(1B)
Additional ₹50,000 deduction over and above the ₹1.5L 80C limit. Exclusive to NPS.
Section 80CCD(2)
Employer contribution up to 14% of salary (Central Govt) or 10% (others) — no upper cap.
Your estimated annual tax saving: ₹33,000 (assuming 30% tax slab)
Benefits of Using an NPS Calculator
Quick retirement projection
Instantly estimate your NPS corpus, lump sum and monthly pension instead of working through complex compounding and annuity formulas manually.
Better asset allocation decisions
Test different expected return assumptions by changing equity–debt allocation (aggressive, moderate, conservative or custom), and see how they impact the final corpus.
Tax planning clarity
Visualise tax savings under Sections 80C, 80CCD(1B) and 80CCD(2) so you can optimise contributions between NPS and other instruments like PPF or ELSS.
Goal-based planning
Align your target retirement income with your current contribution capacity by running multiple scenarios for contribution amount, tenure and retirement age.
Behavioural advantage
Seeing the long-term impact of starting early, increasing contributions, or choosing a higher growth option can encourage more disciplined retirement investing.
Salient Features of This NPS Calculator
Realistic NPS rules built in
Applies the current requirement that at least 40% of the final NPS corpus must be used to purchase an annuity, and up to 60% can be withdrawn as lump sum (Tier I).
Market-linked projection
Uses an expected return input rather than a fixed interest rate because NPS returns depend on equity and debt market performance and fund manager decisions.
Flexible annuity settings
Allows you to choose the annuity percentage and annuity rate, so you can model different post-retirement income options instead of assuming a single fixed pension.
Tax benefit estimator
Summarises eligible deductions under 80C, 80CCD(1B) and 80CCD(2) based on your contribution and, where applicable, employer contribution.
Scenario comparison
Compare scenarios by increasing contribution every year, changing retirement age or return assumptions without re-entering all details.
NPS vs Other Retirement Options
| Feature | NPS | PPF | ELSS |
|---|---|---|---|
| Lock-in | Till retirement | 15 years | 3 years |
| Risk | Low to Moderate | Zero (sovereign) | High (equity) |
| Tax on maturity | 60% tax-free, annuity taxed | Fully tax-free (EEE) | LTCG above ₹1.25L |
| Extra tax benefit | ₹50K under 80CCD(1B) | Within 80C only | Within 80C only |
Tier I vs Tier II in NPS
Tier I (Pension Account)
- • Mandatory for NPS subscribers
- • Lock-in till age 60 (limited partial withdrawal)
- • Tax benefits under 80CCD(1), 80CCD(1B), 80CCD(2)
- • 60% lump sum tax-free at retirement
- • 40% must be annuitised
Tier II (Voluntary Savings)
- • Optional, no minimum balance
- • No lock-in — withdraw anytime
- • No tax deduction on contributions
- • Gains taxed as per income slab
- • Functions like a flexible investment account
NPS and mutual funds in one retirement plan
You have run the numbers above. Here is the part most calculators skip: NPS is rarely the whole plan. It is the locked-in core — your Tier I money stays till 60, and 40% of it becomes an annuity. Everything you want before 60 (a home, a child's education, an early stop) and everything beyond the annuity needs a second layer that stays flexible.
Layer 1 — NPS Tier I: the pension core
- • Contributions up to ₹50,000 a year sit in their own tax slot — 80CCD(1B), over and above 80C (old tax regime).
- • Treat it as the part of your retirement you never touch.
- • Its auto-choice trims your equity share as you age — it manages itself.
Layer 2 — mutual fund SIPs: the flexible layer
- • Monthly SIPs into a mix chosen for your stage of life and your comfort with ups and downs.
- • This is the money for the goals before 60 — and the top-up beyond the annuity.
- • No lock-in till retirement: the plan can change when your life does.
How the two fit together
Think of the equity and debt across BOTH layers as one mix, not two. As NPS trims its equity share with age, your SIP mix holds the balance the plan needs — and dials down too as retirement comes closer. The mix does more work than any single pick.
What we do with you
Pick the mix for your stage. Choose the funds on evidence — 2,000+ schemes, live NAV history, an AMFI-registered distributor's discipline. Then check the plan once a year: rebalance when the mix drifts, not when the news does.
Start where you are. ₹2,000 a month started at 30 has more time on its side than ₹10,000 started at 45. Start early, start small — the plan grows with your income.
Want this laid out for your numbers? Ask for a free callbackMutual fund investments are subject to market risks. Read all scheme-related documents carefully. NPS is regulated by PFRDA; MFGenie is an AMFI-registered mutual fund distributor (ARN-295666) and does not distribute or manage NPS accounts.
Frequently Asked Questions
This NPS calculator provides illustrative estimates only and does not guarantee any returns, corpus size or pension amount. Actual outcomes will depend on market conditions, fund performance, annuity rates, NPS rules and your individual circumstances. The projections shown are based on user-defined assumptions of contribution amount, tenure and expected returns, which may or may not materialise.
Planning for retirement?
Our AMFI-registered team will walk you through the mutual fund SIP layer of your retirement plan, alongside your NPS — free, no pressure.