👴 NPS Calculator

Estimate your NPS retirement corpus and pension amount.

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What is the NPS Calculator?

The National Pension System (NPS) is a government-backed, market-linked retirement scheme open to all Indian citizens, offering additional tax deduction of up to ₹50,000 under Section 80CCD(1B) over and above the ₹1.5 lakh limit under Section 80C. Because your contributions are invested in equity and debt and grow over decades, projecting the final corpus requires compounding your monthly contribution at an assumed rate of return. This calculator does exactly that, and also splits the final corpus between the portion you can withdraw and the portion that must be used to buy an annuity, as per NPS withdrawal rules.

NPS Corpus Formula

Corpus = Monthly Contribution × [(1 + r)^n − 1] × (1 + r) ÷ r

where r is the monthly rate of return (annual rate ÷ 12 ÷ 100) and n is the total number of months contributed. On exit, current NPS rules allow you to withdraw up to 60% of the corpus as a tax-free lump sum, while the remaining 40% must go into an annuity that pays you a regular pension.

Worked Example

Contribute ₹5,000 every month for 25 years (300 months) at an assumed 10% annual return. Applying the formula gives a projected corpus of approximately ₹66.9 lakh at retirement. Of this, roughly ₹40.1 lakh (60%) can be withdrawn as a lump sum, largely tax-free, while about ₹26.8 lakh (40%) must be used to purchase an annuity plan that will pay you a monthly pension for life.

How to Use This Calculator

  1. Enter your planned monthly NPS contribution.
  2. Enter the expected annual rate of return — NPS equity-heavy Tier-1 accounts have historically returned 9–12% over the long run.
  3. Enter the number of years remaining until retirement (typically until age 60).
  4. Click Calculate to see your projected total corpus, lump-sum withdrawal, and annuity portion.

Things to Know About NPS

  • You can choose your own asset allocation between equity (E), corporate bonds (C), and government securities (G), or opt for an auto-choice lifecycle fund that gradually shifts to safer assets as you age.
  • Employer contributions to NPS (for salaried employees) enjoy a separate deduction under Section 80CCD(2), making it one of the most tax-efficient retirement products available in India.
  • The mandatory annuity portion is taxed as regular income when you receive the pension, so factor that into your retirement income planning.
💡 Tip: Compare this projection with the PPF Calculator if you want a fully tax-free, guaranteed-return alternative to sit alongside your NPS savings.

📅 Last reviewed: July 2026 · Formulas verified against RBI/SEBI/IT Dept guidelines.