NPS Calculator (National Pension System)
Calculate your retirement corpus, tax-free lumpsum withdrawal, monthly pension, and Section 80CCD(1B) tax benefits under NPS Tier-1.
After 30 years of compounding at 10%
*Pension payouts depend on annuity rates offered by Annuity Service Providers (ASPs) registered with PFRDA.
Important Educational Disclaimer for Calculator Results:
Calculations are estimates based on your entered inputs and selected return or inflation assumptions. Results are illustrative, hypothetical, and not guaranteed. Actual market returns, interest rates, tax liabilities, and inflation rates will vary and may materially alter your final outcome. This calculator does not constitute financial, investment, or tax advice.
How will NPS power your post-retirement cash flow?
Contributing ₹10,000/month from age 30 to 60 (30 years) builds an estimated total retirement corpus of ₹2,27,93,253.
- Tax-Free Lumpsum (60%): You can withdraw ₹1,36,75,952 completely tax-free at age 60.
- Monthly Pension Annuity (40%): The remaining ₹91,17,301 goes to buy an annuity, providing an estimated lifelong monthly pension of ₹45,587/month.
- Exclusive Tax Deduction: You save up to ₹15,600/year under Section 80CCD(1B), over and above the ₹1.5 Lakh limit of 80C.
How This Calculator Works
NPS contributions are invested in pension funds across Equities (E), Corporate Bonds (C), and Government Securities (G). At age 60, a minimum of 40% must be used to purchase a lifelong annuity.
Corpus = P × [({(1 + i)^n} - 1) / i] × (1 + i)Variables in Formula:
Worked Step-by-Step Example
A 30-year-old salaried professional invests ₹10,000 every month in NPS Tier-1 (Active Choice with 75% Equity) until age 60, earning an estimated 10% CAGR.
Key takeaway: At age 60, the investor receives ₹1.36 Crore tax-free in cash plus a guaranteed monthly pension of ₹45,588/month for life (at 6% annuity rate).
Common Mistakes to Avoid
⚠ Under-allocating to Equities (Asset Class E)
Young investors who choose default conservative auto-choices with heavy debt lose out on equity compounding over 25-30 year horizons.
⚠ Ignoring annuity taxation
While the 60% lumpsum withdrawal is 100% tax-free, the monthly pension payouts from the 40% annuity are taxable under your regular income tax slab.
Frequently Asked Questions
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