NPS Calculator

Calculate your NPS corpus at retirement and expected monthly pension.

Investment Details

Current Age

years

18 years59 years

Monthly Investment

₹

₹500₹1,00,000

Expected Return (p.a.)

8%14%

Expected Annuity Rate

4%8%

Custom Annuity Split

Allocate more to annuity for higher pension

Adjust for Inflation

Show value in today's money

Total Corpus at 60

₹1,03,96,464

Monthly Pension: ₹20,793

Invested Amount₹18,00,000

Est. Returns₹85,96,464

Lumpsum (60%)₹62,37,878

Annuity (40%)₹41,58,585

Year-by-Year Breakdown

Year	Age	Invested	Interest	Total Value
1	31	₹60,000	₹3,203	₹63,203
2	32	₹1,20,000	₹12,726	₹1,32,726
3	33	₹1,80,000	₹29,201	₹2,09,201
4	34	₹2,40,000	₹53,324	₹2,93,324
5	35	₹3,00,000	₹85,859	₹3,85,859

What is NPS?

The National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed by the Government of India to enable systematic savings during your working life. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). NPS offers a mix of equity, corporate bonds, and government securities, allowing investors to choose their asset allocation based on risk appetite.

Key Features of NPS

Flexible Investment: You can invest as low as ₹500 per month with no upper limit on contributions. Choose between active choice (you select asset allocation) or auto choice (age-based automatic allocation).

Tax Benefits: NPS offers triple tax benefits under Section 80CCD. You can claim up to ₹1.5 lakh under 80CCD(1) as part of 80C limit, plus an additional ₹50,000 under 80CCD(1B) exclusively for NPS. Employer contributions up to 10% of salary are also deductible under 80CCD(2).

Retirement Corpus Split: At retirement (age 60), you can withdraw up to 60% of the corpus as a tax-free lumpsum. The remaining 40% (minimum) must be used to purchase an annuity from an empaneled insurance company. You can choose to allocate more to annuity (up to 100%) for a higher monthly pension.

Understanding Annuity

An annuity is a financial product that converts your retirement corpus into a stream of regular income. The annuity rate (typically 4-8%) determines how much monthly pension you'll receive. Current annuity rates in India hover around 5-6% for immediate annuities. The pension you receive is taxable as per your income tax slab.

Choosing Your Split Ratio

The default 60:40 split (60% lumpsum, 40% annuity) maximizes your tax-free withdrawal. However, if you want higher monthly pension income, you can choose to allocate more to annuity. For example, a 50:50 split gives you 25% more monthly pension, while 100% annuity gives you 2.5x the pension but no lumpsum withdrawal.

Why Inflation Adjustment Matters

Inflation erodes the purchasing power of money over time. A corpus of ₹1 crore 30 years from now won't buy what ₹1 crore can buy today. The inflation adjustment feature shows you the real value of your retirement corpus and pension in today's terms, helping you plan more realistically for retirement.

How NPS Calculator Works

This calculator estimates your NPS corpus at retirement using the compound interest formula for regular monthly investments. Enter your current age, monthly contribution, expected returns, annuity rate, and optionally customize the annuity split ratio to see your projected retirement corpus and monthly pension.

Formula used:

Corpus = P × ((1 + r)^n - 1) / r × (1 + r)

Where Corpus = Total value at retirement, P = Monthly investment, r = Effective monthly rate, n = Months until retirement (age 60)

Monthly Pension = (Annuity Amount × Annuity Rate) / 12

Inflation Adjusted Value = Future Value / (1 + Inflation Rate)^Years

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