NPS Calculator

Estimate your NPS corpus at retirement and monthly pension after annuity purchase.

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Enter your NPS details above to estimate your retirement corpus and pension

How NPS corpus and pension are calculated

Accumulation Phase
Corpus = SIP FV over investment period
Monthly contributions grow at the assumed return rate using SIP compounding formula. NPS funds historically deliver 9–12% depending on equity allocation (Tier I, Active vs Auto choice).
Pension Calculation
Pension = (Corpus × Annuity%) × Rate / 12
At least 40% must be used to buy an annuity. The remaining 60% can be withdrawn as a lump sum (tax-free). The annuity rate is set by the insurance company at the time of purchase.

NPS vs EPF vs PPF — which is better?

NPS — highest potential returns

Equity-linked — up to 75% in equity for under-50 investors. Higher long-term returns but market risk. Tax benefit under 80CCD is the best among all three, especially the additional ₹50K under 80CCD(1B).

EPF — guaranteed, salaried only

8.15–8.25% guaranteed rate declared annually by EPFO. Employer also contributes 12% of basic salary. Fully tax-free on withdrawal after 5 continuous years. Mandatory for salaried employees above threshold.

PPF — safe, flexible for all

Government-backed at 7.1% (subject to quarterly revision). Tax-free at all stages (EEE). 15-year lock-in with partial withdrawal from year 7. Ideal for conservative investors and self-employed.

Frequently asked questions

Who can open an NPS account?

Any Indian citizen between 18–70 years (as of 2024) can open an NPS Tier I account. NRI can also open NPS accounts. There are two types: Tier I (mandatory, restricted withdrawal) and Tier II (voluntary, fully liquid — no tax benefit for private sector employees).

What is the minimum contribution for NPS?

Minimum ₹500 per contribution and ₹1,000 per year for Tier I. Minimum ₹250 per contribution for Tier II. There is no maximum contribution limit, but tax benefit is capped at ₹1.5L (80CCD(1)) + ₹50K (80CCD(1B)).

Is the 60% lump sum withdrawal truly tax-free?

Yes. Under the current rules, 60% of the NPS corpus withdrawn at retirement (age 60) is completely tax-free. The 40% used to purchase the annuity is not taxed at that point, but the pension income received is taxable at your slab rate.

Can I withdraw from NPS before retirement?

Partial withdrawal is allowed after 3 years for specific purposes (children's education, serious illness, home purchase) up to 25% of own contributions. Premature exit (before age 60) requires 80% annuitization and only 20% lump sum (taxable). After age 60 it's 40% annuity minimum and 60% lump sum.

Which NPS fund should I choose?

Under Active Choice, you can allocate up to 75% to equity (Scheme E), rest to corporate bonds (Scheme C) and government securities (Scheme G). Under Auto Choice (LC 75, LC 50, LC 25), allocation is age-based — more equity when young, shifting to debt as you approach 60. Historical 10-year returns for equity NPS funds are 12–14%.