The NPS Calculator estimates the retirement corpus, lump sum, and monthly pension you can expect from the National Pension System. Enter how much you contribute each month, your age, the expected return, and how much of the corpus you will use to buy an annuity, and it projects everything through to retirement at 60.
NPS is a voluntary, market-linked retirement scheme with extra tax benefits under Section 80CCD. At retirement, part of your corpus is taken as a tax-free lump sum and the rest buys an annuity that pays a monthly pension. This calculator runs entirely in your browser — nothing is uploaded or stored.
How to use the NPS calculator
- Enter the amount you contribute to NPS each month.
- Set your current age — the calculator grows your contributions until age 60.
- Choose an expected annual return on your investment.
- Set the share of the corpus used to buy an annuity (at least 40%) and the expected annuity rate to see your monthly pension.
How your NPS corpus becomes a pension
Your monthly contributions are invested and grow with compounding until you turn 60, building a retirement corpus. At retirement you must use at least 40% of that corpus to buy an annuity — a product that pays you a regular pension for life — and you can withdraw the remaining portion as a tax-free lump sum.
Your monthly pension depends on how large the annuity portion is and the annuity rate offered at that time. A higher annuity share means a bigger pension but a smaller lump sum, and vice versa.
NPS tax benefits
- Up to ₹1.5 lakh of contributions qualify under Section 80C, with an extra ₹50,000 deduction under Section 80CCD(1B).
- The lump-sum withdrawal at 60 (up to 60% of the corpus) is tax-free.
- The pension you receive from the annuity is taxed as income in the year you receive it.
- NPS is low-cost and market-linked, so returns are not guaranteed.
Frequently Asked Questions
At what age does NPS mature?
NPS matures at age 60 (extendable to 75). This calculator grows your contributions until 60 and then splits the corpus into a lump sum and an annuity.
How much of the NPS corpus must go into an annuity?
At least 40% of the corpus must be used to buy an annuity that provides your monthly pension. You can withdraw the remaining up to 60% as a tax-free lump sum.
Is the NPS pension guaranteed?
No. NPS is market-linked, so the corpus depends on investment returns, and the pension depends on the annuity rate available at retirement. The figures here are estimates based on the return and annuity rate you enter.
What tax benefits does NPS offer?
Contributions qualify under Section 80C (up to ₹1.5 lakh) plus an additional ₹50,000 under Section 80CCD(1B). The lump-sum withdrawal at 60 is tax-free, while the pension is taxed as income.