Free NPS calculator. Estimate your National Pension Scheme corpus at retirement, monthly pension, lump sum withdrawal, tax benefits, and asset allocation impact.
The National Pension Scheme (NPS) Calculator helps you estimate the corpus you will accumulate by retirement, the monthly pension you can expect, and the lump-sum amount you can withdraw — all based on your contribution amount, asset allocation choice, and investment horizon. NPS is India's flagship market-linked pension scheme regulated by PFRDA, offering one of the lowest fund management charges in the world.
NPS allows you to invest in a mix of equity (E), corporate bonds (C), government securities (G), and alternative assets (A). Your returns depend on the allocation you choose — the Aggressive Lifecycle Fund (LC75) allocates up to 75% in equity for younger subscribers, while the Conservative option caps equity at 25%. Historical NPS returns have ranged from 8% (conservative) to over 12% (aggressive equity) annually over the past decade.
At maturity (age 60), you must use at least 40% of your corpus to purchase an annuity (which provides your monthly pension), while the remaining 60% can be withdrawn as a tax-free lump sum. This calculator projects both components, shows the impact of different annuity percentages and allocation strategies, and calculates your annual tax savings under Sections 80CCD(1) and 80CCD(1B).
NPS combines tax efficiency, low costs, and market-linked growth in a single instrument. This calculator helps you choose the right asset allocation by showing how aggressive vs conservative strategies affect your final corpus over decades. It also helps you decide the optimal annuity percentage and understand the significant tax deductions available — up to ₹2 lakh annually including the exclusive ₹50,000 under 80CCD(1B).
Corpus at Retirement = Existing Balance × (1 + r)^n + Monthly × 12 × ((1 + r)^n − 1) / r Lump Sum = Corpus × (1 − Annuity %) [tax-free] Annuity Investment = Corpus × Annuity % Monthly Pension = (Annuity Investment × Annuity Rate) ÷ 12 Tax Deduction = min(Contribution, ₹1,50,000) under 80CCD(1) + min(₹50,000) under 80CCD(1B)
Result: Corpus: ₹2.28 crore · Lump sum: ₹1.37 crore · Monthly pension: ₹45,600
Contributing ₹10,000/month for 30 years with moderate allocation (~10% return) builds a corpus of approximately ₹2.28 crore. With the minimum 40% annuity purchase at 6% annuity rate, you receive a monthly pension of ₹45,600 and a tax-free lump sum of ₹1.37 crore. Annual tax savings of approximately ₹47,000 further reduce your effective cost.
Your asset allocation in NPS has a massive impact on your final corpus. Historical data shows NPS equity funds (Scheme E) have returned 12-14% annually over 10+ year periods, while government bond funds (Scheme G) returned 8-9%. For a 30-year-old with 30 years to retirement, choosing LC75 (75% equity) over LC25 (25% equity) could mean a 40-60% larger corpus. The trade-off is higher short-term volatility, but over 20-30 year horizons, equity consistently outperforms debt in India.
NPS offers India's most generous retirement tax benefits. Under Section 80CCD(1), contributions up to 10% of salary (20% for self-employed) are deductible within the ₹1.5 lakh 80C limit. The exclusive Section 80CCD(1B) adds ₹50,000 more. For salaried employees, employer NPS contributions under 80CCD(2) are deductible without limit (up to 14% for government, 10% for private). A private sector employee earning ₹12 lakh can claim over ₹2 lakh in NPS deductions alone, saving ₹60,000+ in taxes annually.
NPS wins on tax efficiency and cost — expense ratios of 0.01-0.09% are a fraction of mutual fund charges. However, mutual funds offer complete liquidity, broader fund selection, and no mandatory annuity purchase. The ideal strategy uses NPS for its unique tax benefits (especially the 80CCD(1B) top-up) while using ELSS mutual funds for the 80C portion and regular SIPs for additional wealth building. Together, they provide tax optimization, flexibility, and robust retirement savings.
The National Pension Scheme is a government-regulated, market-linked retirement savings scheme open to all Indian citizens aged 18-70 (for Tier I). It is mandatory for central government employees hired after 2004 and voluntary for everyone else. NPS is managed by professional Pension Fund Managers with extremely low expense ratios (0.01-0.09%).
NPS offers four asset classes: Equity (E) — up to 75%, Corporate Bonds (C), Government Securities (G), and Alternative Assets (A) — up to 5%. Active Choice lets you set your own allocation. Auto Choice (Lifecycle Fund) automatically reduces equity exposure as you age, available in three variants: LC75, LC50, and LC25.
NPS contributions qualify for deduction under Section 80CCD(1) within the ₹1.5 lakh 80C limit, plus an exclusive additional ₹50,000 under Section 80CCD(1B). Employer NPS contributions (up to 14% of salary for government, 10% for others) are deductible under 80CCD(2) with no upper limit. The 60% lump sum at maturity is tax-free.
Your pension depends on three factors: your accumulated corpus, the percentage used to buy an annuity (minimum 40%), and the annuity rate offered by the insurance company. Annuity rates typically range from 5-7% depending on the provider and annuity type chosen.
Partial withdrawal is allowed after 3 years for specific purposes (education, home purchase, medical treatment, etc.) up to 25% of your own contributions. You can make up to 3 partial withdrawals during the account lifetime. Premature exit before 60 requires 80% annuity purchase.
Tier I is the primary pension account with tax benefits and withdrawal restrictions (locked until 60 with exceptions). Tier II is a voluntary savings account with flexible withdrawals and no tax benefits (except for government employees). Tier II acts like a mutual fund with the same low NPS fund management charges.