NPS Calculator: National Pension System Maturity & Pension

Calculate the retirement corpus, mandatory annuity purchase, and monthly pension of the NPS (National Pension System). Section 80CCD(1B) extra Rs 50K deduction (above Sec 80C).

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NPS (National Pension System) is a PFRDA-regulated retirement savings scheme. It is mandatory for Government employees (NPS replaced OPS in 2004) and voluntary for the private sector and self-employed. Asset allocation: Equity (E), Corporate Debt (C), Govt Securities (G), Alternative (A). Tier-1 (retirement, lock-in till 60) + Tier-2 (flexible withdrawal).

This free NPS Calculator takes as input your current age, retirement age (default 60), monthly contribution, expected return mix (default 10% based on aggressive equity allocation), and annuity rate (default 6.5% — current LIC/SBI Life rates). Outputs: Final corpus at retirement, Lumpsum (60% mandatory, tax-free), Annuity (40% mandatory, taxable monthly pension), Effective monthly pension.

Tax benefits — the biggest advantage of NPS: - Section 80CCD(1): Up to 10% of basic salary (salaried) or 20% of gross income (self-employed), within Sec 80C limit Rs 1.5L - Section 80CCD(1B): ADDITIONAL Rs 50,000 deduction ON TOP of 80C — UNIQUE to NPS, no other instrument has this - Section 80CCD(2): Employer contribution up to 14% of basic (govt) / 10% (private) — UNLIMITED, no cap

Old vs New Regime: 80CCD(1B) Rs 50K is available ONLY in the Old Regime. 80CCD(2) employer contribution is available in BOTH regimes.

NPS withdrawal rules: - Age 60: 60% lumpsum (tax-free), 40% must purchase annuity (monthly pension till death, taxable per slab) - Premature exit (before 60, 10 yrs): 80% annuity + 20% lumpsum - Death: Full corpus to nominee (tax-free) - Critical illness / disability: Earlier withdrawal allowed

Auto Choice vs Active Choice: - Auto: PFRDA decides equity-debt mix based on age (LC25, LC50, LC75 — Life Cycle options) - Active: You choose — Equity max 75% (declining 2.5% per year from age 50). Aggressive investors prefer active.

NPS vs PPF vs EPF: - NPS: Higher return potential (equity exposure), 80CCD(1B) extra Rs 50K, but 40% locked in annuity - PPF: 7.1% guaranteed, fully tax-free at maturity, no equity - EPF: 8.25%, employer matches your contribution (12% basic each), mandatory salaried

Recommended: Diversify across all 3. NPS for the unique 80CCD(1B) benefit and equity exposure.

हिंदी में खोजृं (Hindi search): NPS calculator hindi, नेशनल पेंशन सिस्टम, NPS टियर 1, NPS टियर 2, सेक्शन 80CCD ब्रैकेट, रिटायरमेंट पेंशन, पीएफआरडीए NPS
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Frequently Asked Questions (FAQ)

NPS Tier-1 vs Tier-2 difference?
Tier-1 retirement account, lock-in till age 60, tax benefits available, 40% mandatory annuity. Tier-2 voluntary savings, no lock-in, withdrawal anytime, NO tax benefits (except for central govt employees), no annuity requirement. Most opt for Tier-1 only.
What is the NPS annuity rate?
The annuity rate is set by the annuity provider (LIC, SBI Life, ICICI Pru) based on the type chosen (Life only, Life + Spouse, Life with Return of Purchase Price). Current rates are 5.5-7.5% depending on the plan. ROP (return of purchase) has the lowest rate, life-only the highest. Annuity income is TAXABLE.
How is the employer's NPS contribution tax-deductible?
Under Section 80CCD(2), the employer's NPS contribution is tax-deductible up to 14% of basic salary (govt employees) or 10% of basic (private) with NO cap. This is ON TOP of 80C and 80CCD(1B). The best benefit is if your employer offers NPS — even better if you negotiate a higher employer contribution.
What happens with NPS withdrawal at age 60?
Maturity at age 60: 60% corpus as Lumpsum (tax-free withdrawal), 40% mandatory to purchase Annuity from an approved provider (monthly pension till death, taxable). Defer option: continue contributing till age 75. Phased withdrawal of the lumpsum over 10 years is also available.
How is NPS different from the Atal Pension Yojana?
NPS is market-linked, voluntary, open to all citizens 18-70, with flexible contributions. APY provides a guaranteed pension (Rs 1K-5K/month), only for age 18-40, unorganized sector, with a fixed monthly contribution. APY is simpler but has lower returns. NPS has higher return potential but carries market risk.

City-wise availability

You can use this same tool for free in Mumbai, Delhi, Bangalore, Hyderabad, Chennai, Kolkata, Pune, Ahmedabad, Sirsa, and Mandi Dabwali. Seamless across mobile and desktop. You can also share the PDF directly on WhatsApp.

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