NPS Calculator

What is the NPS?

The National Pension System (NPS) is a market-linked retirement scheme where you contribute monthly until 60, and your money is invested across equity and debt. Because it blends market returns with long-tenure compounding, it can build a large corpus — and it offers an extra ₹50,000 tax deduction under Section 80CCD(1B), over and above 80C.

How your corpus is used at retirement

At 60, you must use at least 40% of the corpus to buy an annuity (a regular pension), and can withdraw the rest as a lump sum (largely tax-free). This calculator projects the total accumulated corpus; the pension you receive then depends on annuity rates at that time.

NPS vs other retirement options

NPS has low costs and equity exposure but with the annuity requirement and lock-in until 60. Mutual funds offer more flexibility; EPF/PPF offer guaranteed but lower returns. Many people use a mix.

Related tools

• EPF Calculator — your employer-linked retirement fund.
• SIP Calculator — flexible market-linked investing.

Frequently asked questions

What tax benefit does NPS offer?

Beyond the 80C limit, NPS offers an additional ₹50,000 deduction under Section 80CCD(1B) under the old regime, making it attractive for tax saving.

Can I withdraw the full NPS corpus at 60?

No. At least 40% must be used to buy an annuity for a regular pension; the remaining up to 60% can be withdrawn as a largely tax-free lump sum.

What returns can I expect from NPS?

NPS returns depend on your equity-debt allocation. A blended long-term return of around 9–11% is a common assumption, but it isn't guaranteed.