NPS Calculator – National Pension System Returns
Total Contribution
₹0
Total Corpus at Retirement
₹0
Estimated Monthly Pension
₹0
40% of corpus used for annuity at 6% p.a.
What Is the National Pension System (NPS)?
The National Pension System (NPS) is a government-backed retirement savings scheme in India regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It allows individuals to contribute regularly during their working years to build a substantial retirement corpus. NPS offers a mix of equity, corporate bonds, and government securities, giving subscribers flexibility in choosing their investment allocation based on risk appetite.
This NPS calculator uses the future value of annuity formula, compounding your monthly contributions at the expected annual return rate over the years remaining until retirement. The total corpus represents the accumulated wealth at your retirement age. Under current NPS rules, at least 40% of the corpus must be used to purchase an annuity plan that provides a regular monthly pension. The remaining 60% can be withdrawn as a lump sum, which is tax-free.
The estimated monthly pension shown here assumes the mandatory 40% annuity portion is invested at a 6% annual annuity rate, which is a typical conservative estimate. Your actual pension will depend on the annuity provider and the plan you choose. NPS contributions qualify for tax deductions under Section 80CCD(1) within the overall limit of Section 80C, plus an additional deduction of up to ₹50,000 under Section 80CCD(1B), making it one of the most tax-efficient retirement planning tools available to Indian citizens.
Frequently Asked Questions
What is NPS?
NPS (National Pension System) is a government-backed retirement savings scheme in India regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It allows individuals to contribute regularly during their working years to build a retirement corpus through a mix of equity, corporate bonds, and government securities.
What are the tax benefits of NPS?
NPS contributions qualify for tax deductions under Section 80CCD(1) within the overall limit of Section 80C (up to ₹1.5 lakh). An additional deduction of up to ₹50,000 is available under Section 80CCD(1B). At maturity, the 60% lump-sum withdrawal is completely tax-free.
When can I withdraw from NPS?
You can withdraw from NPS at the age of 60 (normal retirement). Partial withdrawals (up to 25% of your own contributions) are allowed after 3 years for specific purposes like medical emergencies, higher education, home purchase, or marriage. Premature exit before 60 is permitted after 5 years but with restrictions.
What is the NPS annuity requirement?
Under current NPS rules, at least 40% of the accumulated corpus at retirement must be used to purchase an annuity plan from an empaneled insurance company. This annuity provides a regular monthly pension. The remaining 60% can be withdrawn as a tax-free lump sum.