NPS Calculator

The National Pension Scheme is a voluntary, market-linked retirement product regulated by the PFRDA. You contribute regularly into a mix of equity, corporate bonds, and government securities, and your money grows at market returns until you turn 60. Because it invests partly in equities, NPS has historically delivered higher long-run returns than purely fixed-income options like PPF or EPF — at the cost of some short-term volatility. This calculator lets you set an expected blended return to see how the corpus builds over your working years.

At retirement, NPS has a specific structure: you can withdraw up to 60% of the accumulated corpus as a tax-free lump sum, while at least 40% must be used to purchase an annuity from an insurer. That annuity pays you a regular pension for life, at a rate that depends on prevailing annuity yields — typically 6%–7%. The calculator splits your projected corpus into the lump sum and the annuity portion, then estimates the monthly pension the annuity would generate, so you can judge whether your contributions are on track for the retirement income you want.

NPS is also one of the most tax-efficient ways to save for retirement. Contributions count toward the Section 80C limit under 80CCD(1), and there's an exclusive extra deduction of ₹50,000 under Section 80CCD(1B) on top of the ₹1.5 lakh ceiling — a benefit no other product offers. The trade-offs are low liquidity (the corpus is largely locked until 60) and the fact that the pension you eventually draw is taxable. Treat NPS as a long-horizon complement to EPF and equity SIPs rather than your only retirement vehicle, and revisit your assumptions as annuity rates change.