NPS Calculator — National Pension System Returns
Calculate your NPS corpus, lump sum withdrawal, and estimated monthly pension at retirement. Plan your retirement with India's most tax-efficient pension scheme.
• Tax benefits under Section 80C and 80CCD
• Regulated by PFRDA for safety
• Mandatory annuity purchase at maturity
• Maximum equity allocation: 75%
Your NPS Results
Enter your details and click Calculate to see results
Plan Your Full Retirement Portfolio
Combine NPS with your SIP, FD, and other investments in our Wealth Calculator for a complete retirement picture.
What is NPS?
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It allows you to build a retirement corpus through regular contributions that are invested in a mix of equity, corporate bonds, and government securities based on your chosen allocation.
How NPS Works at Retirement
At age 60, you can withdraw up to 60% of your NPS corpus as a tax-free lump sum. The remaining minimum 40% must be used to purchase an annuity from a PFRDA-empanelled life insurer, which provides a monthly pension for life. You can choose to annuitise more than 40% for a higher pension.
Example: ₹1 Crore corpus at 60, 60% annuity chosen:
• Tax-free lump sum: ₹40 Lakh
• Annuity corpus: ₹60 Lakh at 6% annuity rate
• Monthly pension: ₹60L × 6% ÷ 12 = ₹30,000/month
NPS Tax Benefits
- Section 80C: Up to ₹1.5 lakh deduction on NPS Tier 1 contributions
- Section 80CCD(1B): Additional ₹50,000 deduction exclusive to NPS — over and above 80C limit
- Employer Contribution: Employer's NPS contribution (up to 10% of salary) is deductible under 80CCD(2), no upper limit
- 60% Lump Sum: Tax-free at maturity
- Total potential deduction: Up to ₹2 lakh/year for salaried individuals
Frequently Asked Questions
What is the maximum equity allocation in NPS?
Under Auto Choice, equity allocation starts at 75% for subscribers below 35 and reduces gradually with age. Under Active Choice, you can choose up to 75% equity allocation (Asset Class E) regardless of age.
Can I withdraw from NPS before 60?
Partial withdrawal (up to 25% of your contributions) is allowed after 3 years for specific purposes: children's education, marriage, home purchase, or medical treatment. Full withdrawal before 60 is not permitted except in case of death or terminal illness.
Is NPS better than PPF for retirement?
NPS generally offers higher long-term returns (10-12% vs PPF's 7.1%) due to equity exposure, plus an additional ₹50,000 tax deduction. However, PPF is fully liquid after 15 years with no annuity obligation. For retirement planning, NPS + PPF combination is ideal.
What return rate should I assume for NPS?
With 75% equity allocation, historical NPS returns have been 10-12% CAGR. With 50% equity, expect 9-10%. Our calculator defaults to a blended rate based on your equity allocation using 12% for equity and 8% for debt.