NPS Calculator
Estimate the retirement corpus of your National Pension System contributions — enter a monthly amount, an expected annual return and the years to go, and see the corpus, your own contribution, the growth and the annuity portion.
What is an NPS calculator?
An NPS calculator (National Pension System calculator) works out how large your retirement corpus can grow from regular monthly contributions. The National Pension System is a government-backed scheme in India where you invest a fixed amount monthly into equity, debt and government funds until you retire. This free tool takes three inputs: the monthly contribution, the expected annual return and the number of years.
It compounds your contributions at the expected return to estimate your total corpus at retirement, then shows how much is simply money you put in, how much is growth, and how the rules split it — up to 60% as a tax-free lump sum and the rest for an annuity. It runs in your browser, so results appear instantly and nothing is uploaded.
How to use
- Enter the monthly contribution to NPS.
- Set an expected annual return — 10% is common.
- Enter the years until retirement.
- Click Calculate NPS Corpus to see the corpus and the annuity split.
How the NPS corpus is calculated
Corpus = P × [((1 + i)^n − 1) / i] × (1 + i) i = annual return / 12, n = months
This is the future value of a monthly annuity-due contribution. At retirement, at least 40% of the corpus buys an annuity for lifelong pension, while up to 60% is withdrawn tax-free.
Example
With the defaults — ₹5,000 a month, 10% annual return and 30 years — the corpus grows to about ₹1,13,96,600 (roughly ₹1.14 crore). Your total contribution of ₹5,000 × 360 months = ₹18,00,000 means about ₹95.96 lakh of growth. At retirement, about ₹45.59 lakh (40%) is kept for the annuity and ₹68.38 lakh (60%) can be withdrawn tax-free.
Common use cases
- Retirement planning: decide how much to contribute each month.
- Comparing options: see how NPS compares with a provident fund or mutual funds.
- Understanding the rule: grasp the 40% annuity, 60% tax-free lump sum split.
- Starting early: test how a few extra years changes the corpus.
Pro tips
- Start early: compounding rewards you far more at 25 than at 45.
- Be realistic about the return: 10% is a planning figure, not a guarantee.
- Keep at least 40% for the annuity: the scheme compels this.
- Use the new-regime deduction: only the employer's NPS under 80CCD(2).
FAQ
What is NPS?
A government-backed retirement scheme in India. You contribute monthly, grow the corpus in equity and debt funds, and get a lump sum plus a pension at retirement.
How is the NPS corpus calculated?
It is the future value of your monthly contributions compounded at the expected annual return: FV = P × (((1 + i)^n − 1) / i) × (1 + i), where i is the monthly rate and n is months.
How much of the NPS corpus is taken as a lump sum?
Up to 60% can be withdrawn tax-free at retirement. The remaining 40% must buy an annuity that pays a lifelong pension.
What is a good expected return for NPS?
Many people assume around 9% to 11% a year, but your actual return depends on your allocation and the market. Near 10% is a common planning figure.
Can I claim a tax deduction on NPS?
Under the old regime, your own contribution is deductible under 80CCD(1B) and the employer's under 80CCD(2). In the new regime, only the employer's is.
What age do I start the annuity?
The default retirement age is 60. Adjust the investment period if you plan to retire early or work longer.
Is the NPS lump sum tax-free?
Up to 60% of the accumulated corpus can be withdrawn tax-free at retirement. The annuity amount is taxed at your slab when received.
Can I increase my contribution over time?
Yes, you can change the amount and allocation over time. A flat monthly amount is assumed here for a simple estimate.
Is this NPS calculator accurate?
It gives a solid estimate from a steady contribution and a fixed return. Real returns vary, so treat it as a planning guide.
Is this NPS calculator free?
Yes. It runs entirely in your browser and no financial details are uploaded.
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Disclaimer
An indicative estimate from a fixed contribution and a single expected return, which do not reflect market volatility. NPS returns, annuity rates and tax rules can change. Verify with the NPS portal or an adviser.