NPS Calculator
Estimate your National Pension System corpus at retirement, the tax-free lump sum and your monthly pension. Enter your monthly contribution, age and expected return.
Retirement corpus at 60
₹1,13,96,627
Estimated monthly pension
₹22,793
Total invested
₹18,00,000
Interest earned
₹95,96,627
Tax-free lump sum (60%)
₹68,37,976
Annuity amount (40%)
₹45,58,651
Assumes monthly contributions from age 30 to 60 (30 years), compounded monthly. Pension assumes 40% of the corpus buys an annuity at 6% a year. NPS returns are market-linked and not guaranteed.
What is the National Pension System?
The National Pension System (NPS) is a voluntary retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Any Indian citizen between 18 and 70 can open an NPS account. Your contributions are invested in a mix of equity, corporate bonds and government securities, and the corpus builds until you retire.
How is the NPS corpus calculated?
Each monthly contribution earns compound returns for the months remaining until retirement. The future value of a monthly contribution P at a monthly rate i over n months is P × ((1 + i)ⁿ − 1) ÷ i × (1 + i). This calculator compounds your contributions monthly at the expected annual return until age 60.
Lump sum and pension at retirement
At age 60, up to 60% of your NPS corpus can be withdrawn as a tax-free lump sum. The remaining 40% must purchase an annuity from an insurance company, which then pays you a regular pension for life. This calculator assumes a 6% annual annuity rate to estimate the monthly pension.
Worked example
A 30-year-old contributing ₹5,000 a month at an expected 10% annual return builds a corpus of roughly ₹1.14 crore by age 60. Of this, about ₹68 lakh can be withdrawn tax-free, and the remaining ₹45 lakh annuity would pay around ₹22,800 a month. Use the calculator above with your own figures.
Tax benefits of NPS
NPS offers an extra ₹50,000 deduction under Section 80CCD(1B) over and above the ₹1.5 lakh Section 80C limit. Salaried employees can also claim employer contributions under 80CCD(2). At retirement, the 60% lump sum is fully tax-free; only the annuity pension is taxed as income.
This calculator runs entirely in your browser. Your contribution, age and return figures are never uploaded or stored. Estimates are for planning only — actual NPS returns and annuity rates will differ.