NPS Calculator India
Calculate your National Pension Scheme corpus, lump sum withdrawal, and monthly pension
Calculate Your NPS Returns
Minimum: ₹500, Maximum: ₹2,00,000 per month
NPS eligibility: 18-60 years
Standard retirement age is 60, can extend to 70
Historical NPS returns: 9-12% annually
Minimum 40% must be invested in annuity
Typical annuity rates: 5-7% per annum
NPS Calculation Results
Annuity & Lump Sum Breakdown
Formula used: A = P × (((1 + R/12)^(12×N) - 1) / (R/12))
Tax Benefit: Up to ₹1,10,000 annually under Section 80CCD
Important: 60% of lump sum is tax-free, remaining is taxable
Investment Analysis
Example NPS Calculation
25-Year Old Professional
Monthly Investment: ₹5,000
Current Age: 25 years
Retirement Age: 60 years
Investment Duration: 35 years
Expected Return: 10% per annum
Calculation Results
Total Investment: ₹21,00,000
Interest Earned: ₹1,68,83,190
Maturity Amount: ₹1,89,83,190
Lump Sum (60%): ₹1,13,89,914
Annuity Amount (40%): ₹75,93,276
Monthly Pension: ₹41,000 (approx.)
NPS Benefits
Tax Benefits
Up to ₹2 lakh deduction
Section 80CCD(1) + 80CCD(1B)
Lock-in Period
Until age 60 (minimum)
Ensures disciplined saving
Government Backed
PFRDA regulated
Secure and transparent
NPS Investment Tips
Start early to maximize compound growth
Choose Active Choice for higher returns
Increase contribution annually (step-up SIP)
Review and rebalance portfolio periodically
Consider additional voluntary contributions
Understanding National Pension Scheme (NPS)
What is NPS?
The National Pension Scheme (NPS) is a government-sponsored retirement savings scheme designed to provide financial security during retirement. It offers market-linked returns with professional fund management and significant tax benefits.
Key Features
- •Minimum annual contribution: ₹6,000 (₹500/month)
- •Maximum annual contribution: ₹24,00,000
- •Entry age: 18-60 years (can extend to 70)
- •Partial withdrawal allowed after 3 years
NPS Calculation Formula
A = P × (((1 + R/12)^(12×N) - 1) / (R/12))
- A: Maturity amount
- P: Monthly investment
- R: Annual rate of return
- N: Number of years
Exit Options
- •At 60: Withdraw up to 60% as lump sum
- •Remaining 40% invested in annuity for pension
- •Can defer withdrawal until age 70
Important Considerations
Tax Implications
- • EEE status for Tier-I account
- • 60% of lump sum is tax-free
- • Remaining 40% through annuity is taxable
- • Pension income is fully taxable
Risk Factors
- • Market-linked returns (not guaranteed)
- • Long lock-in period until retirement
- • Mandatory annuity purchase requirement
- • Fund management charges apply