NPS Calculator
Estimate NPS corpus from monthly contributions.
National Pension System (NPS) Corpus
NPS is a voluntary, market-linked retirement scheme regulated by PFRDA. Tier I locks money until retirement with tax benefits in Old Regime. At 60, part of the corpus can be withdrawn tax-free while the rest must buy an annuity for monthly pension.
How to use this calculator
Enter current age, retirement age (usually 60), and monthly or annual Tier I contribution. Tier II is optional, more liquid, and does not qualify for the extra 80CCD(1B) deduction.
Pick expected return based on asset mix: conservative G funds near 8%, balanced auto choice 9% to 10%, aggressive equity-heavy 10% to 11%. Returns are not guaranteed. Stress-test 1% lower.
Review the 60% lump sum vs 40% annuity split at maturity. Factor NPS alongside EPF and PPF so retirement savings are not over-concentrated in one locked product.
Corporate NPS contributions may appear inside CTC. If employer match is part of salary structure, voluntary top-ups above that match should be modeled separately so you do not double-count retirement savings.
NPS maturity rules at 60
Up to 60% of Tier I corpus can be withdrawn as tax-free lump sum under current rules. At least 40% must buy an annuity from an IRDAI-approved insurer. Example: ₹80 lakh corpus at 60. Max lump sum ≈ ₹48 lakh tax-free. Remaining ₹32 lakh buys pension. Monthly pension depends on annuity rate at purchase, often 5% to 7% of corpus annuitized. Corpus grows with contributions plus market returns minus fund management charges.
Frequently Asked Questions
Tax benefits of NPS?
Old Regime: up to ₹1.5 lakh under 80C plus extra ₹50,000 under 80CCD(1B) for Tier I contributions.
Withdraw before 60?
Premature exit allows only 20% lump sum; 80% must be annuitized. Partial withdrawal up to 25% of own contribution is allowed for specific emergencies after minimum years.
Where is NPS money invested?
Choose Active Choice across equity, corporate bonds, and government securities, or Auto Choice that reduces equity as you age.
Government employees on NPS?
Central recruits after 2004 are on NPS by default with employer matching that boosts corpus versus purely voluntary private subscribers.
What fees reduce returns?
Pension fund and POP charges are low but switching and partial withdrawals still affect compounding. Review CRA statements annually.
Mandatory for private sector?
No unless the employer adopts NPS as a corporate plan. Individuals can open accounts through banks or eNPS.
Can I change fund manager?
Yes, typically once per financial year without tax impact, though transaction charges may apply.
How to open NPS online?
Register on eNPS or through your bank POP with PAN and Aadhaar. Tier I opens first; Tier II can be added later for non-retirement savings without extra 80CCD(1B) benefit.
NPS vs mutual fund SIP?
NPS has low costs and tax perks but locks money until retirement with mandatory annuity. Mutual fund SIPs offer flexibility without pension purchase rules.
Default auto choice age bands?
Auto Choice starts equity-heavy in your twenties and shifts toward government bonds as you cross 35, 45, and 55 to reduce volatility near retirement.
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