NPS Calculator

Estimate your NPS corpus at 60, the tax-free lump sum you can withdraw and the monthly pension from the annuity.

What is the NPS Calculator?

The National Pension System is a market-linked retirement scheme regulated by PFRDA. At 60, at least 40% of the corpus must be used to buy an annuity that pays a pension; up to 60% can be withdrawn tax-free.

How does it work?

Monthly contributions compound until age 60 at the expected return. The corpus is then split into the annuity portion (which pays a pension at the annuity rate) and the lump sum.

Formula

Corpus = P × [((1 + i)^n − 1) ÷ i] × (1 + i)
Pension = Corpus × Annuity% × Annuity rate ÷ 12

Example

₹5,000 a month from age 30 at 10% builds about ₹1.14 crore at 60. With 40% in an annuity at 6%, the pension is about ₹22,800 a month.

Frequently asked questions

What tax benefits does NPS offer?

Under the old regime, contributions qualify under 80CCD(1) within the ₹1.5 lakh 80C limit plus an extra ₹50,000 under 80CCD(1B). Employer contributions under 80CCD(2) are deductible in both regimes, within limits.

Is the pension taxable?

Yes, annuity income is taxable at your slab rate in the year you receive it.

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