National Pension System Calculator
Calculate NPS corpus and pension.
Monthly Contribution
Current Age
Expected Return
Total Corpus
₹1,13,96,627
NPS Calculator – National Pension System Corpus Estimator
An NPS Calculator helps you estimate the pension and lump sum amount you will receive from the National Pension System (NPS) upon retirement.
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings. It offers a mix of equity and debt exposure.
What is a NPS Calculator?
The NPS Calculator estimates the provisional pension and lump sum amount you can expect at retirement.
It helps subscribers calculate the potential corpus at age 60 based on monthly contributions.
NPS rules mandate that at least 40% of the corpus must be used to purchase an annuity for monthly pension, while the rest can be withdrawn.
How does this NPS Calculator work?
The calculator uses the following formula:
FV = P * [((1+r)^n - 1)/r] * (1+r)
- It calculates the total accumulated corpus using the compound interest formula on monthly contributions.
- It then splits the corpus into 'Lump sum withdrawal' and 'Annuity investment' based on standard ratios (usually 60:40).
- It does not calculate the exact annuity amount as annuity rates vary at the time of retirement.
How to use this NPS Calculator effectively
- Enter your monthly contribution amount.
- Enter your current age.
- Set the expected rate of return (NPS returns are market-linked).
- The tool displays the total corpus and the estimated tax-free lumpsum portion.
Commonly asked questions
What is NPS?
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings during your working life.
Who can open an NPS account?
Any citizen of India (resident or non-resident) between the ages of 18 and 70 years can open an NPS account.
What are the types of NPS accounts?
There are two types: Tier I (restricted withdrawal, pension account) and Tier II (voluntary savings account with liquidity).
Is there any tax benefit for NPS?
Yes, contributions up to ₹1.5 Lakh are deductible under 80C. An additional deduction of ₹50,000 is available under 80CCD(1B).
What is the minimum contribution?
For Tier I, the minimum contribution is ₹500 per transaction and ₹1,000 per year. For Tier II, it is ₹250.
Can I withdraw from NPS before 60?
Partial withdrawal (up to 25% of own contribution) is allowed after 3 years for specific purposes like higher education, marriage, or medical treatment.
What happens at age 60?
At 60, you can withdraw up to 60% of the corpus as a tax-free lump sum. The remaining 40% must be used to purchase an annuity for monthly pension.
Is the pension amount fixed?
No, the pension depends on the corpus accumulated and the annuity rate prevailing at the time of retirement.
Can I choose my investment pattern?
Yes, you can choose between Active Choice (you decide the asset allocation) and Auto Choice (allocation changes with age).
What are the asset classes in NPS?
The asset classes are Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Investment Funds (A).
Is the entire withdrawal tax-free?
The 60% lump sum withdrawal at maturity is tax-free. The amount used to buy annuity is also tax-exempt, but the pension received is taxable.
Can I continue NPS after 60?
Yes, you can defer the withdrawal and continue contributing to your NPS account up to the age of 75 years.
How many NPS accounts can I have?
You can have only one NPS account (PRAN). However, you can have both Tier I and Tier II accounts under the same PRAN.
Can NRIs invest in NPS?
Yes, NRIs can open an NPS account provided they have a valid Indian bank account and PAN card.
Is it mandatory to buy an annuity?
Yes, at least 40% of the corpus must be utilized to purchase an annuity plan from a PFRDA-registered Annuity Service Provider.
What if the corpus is small?
If the total corpus is less than or equal to ₹5 Lakh, you can withdraw the entire amount as a lump sum without purchasing an annuity.
Can I change my fund manager?
Yes, you can change your Pension Fund Manager once in a financial year.
What is PRAN?
PRAN stands for Permanent Retirement Account Number, a unique 12-digit number allotted to every subscriber.
Is nomination mandatory?
Yes, providing nominee details is mandatory at the time of registration.
How safe is NPS?
NPS is regulated by PFRDA and is considered a safe investment option, though market risks apply to the equity portion.