NPS Pension Calculator
NPS Calculator — National Pension System
Estimate your retirement corpus, monthly pension, and lumpsum withdrawal under NPS Tier I
Your results will appear here
Set your monthly investment, age, expected returns and annuity split on the left, then click Calculate Pension.
Government-Backed
NPS is regulated by PFRDA and backed by the Government of India — one of the most secure long-term retirement instruments available.
Tax Benefits
Contributions up to ₹1.5L qualify under Section 80C. An additional ₹50,000 is deductible under Section 80CCD(1B) — exclusive to NPS.
Market-Linked Returns
Unlike fixed-return products, NPS invests in equities, government bonds, and corporate debt — historically delivering 9–12% p.a. over long periods.
Understanding NPS
What is NPS and How Does It Work?
A complete guide to the National Pension System for Indian residents
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings during the subscriber's working life. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), it was launched by the Government of India in 2004 and opened to all citizens in 2009.
Any Indian resident between 18 and 70 years of age can open an NPS account. Contributions accumulate in a pension fund that is invested in market-linked instruments — equities, government securities, and corporate bonds — generating compounded returns over the investment horizon. On retirement, a mandatory portion is used to purchase an annuity (which pays monthly pension), while the balance can be withdrawn tax-free as a lump sum.
NPS uses the standard compound interest formula to project growth on monthly contributions:
For example, a 25-year-old investing ₹5,000 per month at 10% p.a. until age 60 (35 years / 420 months) accumulates a corpus of approximately ₹1.91 crore. Of this, ₹21 lakh is the actual money invested — the remaining ₹1.70 crore is the power of compounding working over 35 years. The monthly pension depends on the annuity portion and the annuity rate offered by the chosen insurer.
The core NPS account. Contributions are locked in until retirement (age 60). Mandatory for tax benefits. Partial withdrawal (up to 25%) is permitted after 3 years for specific purposes such as home purchase, education, or medical treatment. Minimum annual contribution: ₹1,000.
A flexible savings account linked to NPS with no lock-in — you can withdraw at any time. Does not offer Section 80C tax deduction (except for government employees). Functions like a mutual fund with lower expense ratios. No minimum annual contribution requirement after account opening.
Up to 60% of the accumulated corpus can be withdrawn as a lump sum at retirement. This amount is completely tax-exempt under the Income Tax Act — one of the most attractive features of NPS for long-term investors.
At least 40% of the corpus must be used to purchase an annuity from an IRDAI-registered annuity service provider (ASP). This annuity generates your monthly pension for life. A higher annuity allocation means more pension but less lumpsum.
You can defer withdrawal up to age 75, allowing the corpus to continue compounding. This is particularly useful if you do not need immediate cash and want to maximize either your lumpsum or annuity amount.
If your total corpus at maturity is ₹5 lakh or less, you may withdraw the entire amount as a lumpsum without being required to purchase an annuity — providing flexibility to small investors.