use

We use cookies to improve your experience. By continuing to browse, you agree to our cookie policy.

← Back

Financial Calculators

NPS Calculator

The National Pension System (NPS) is a voluntary retirement savings scheme that allows individuals to make defined contributions towards planned savings for retirement. Our NPS Calculator helps you estimate the total corpus you will accumulate at the time of your retirement, the lumpsum amount you can withdraw, and the expected monthly pension you will receive. This tool is essential for anyone looking to invest in NPS and plan for a secure and comfortable retirement.

For more information, visit the official National Pension System (NPS) website.

What is the National Pension System (NPS)?

The National Pension System (NPS) is a retirement savings and investment plan launched by the Government of India. It is a voluntary, long-term retirement scheme designed to provide a regular income to subscribers after retirement. Under the NPS, you contribute to your pension account during your working years. Upon retirement, you can withdraw a portion of the accumulated corpus as a lumpsum and use the remaining amount to purchase an annuity, which provides a monthly pension.

Key Features of NPS

  • Voluntary Contributions: You can choose the amount you want to contribute to your NPS account each year, subject to a minimum limit.
  • Two Types of Accounts: NPS offers two types of accounts – Tier I (a mandatory, non-withdrawal account for retirement savings) and Tier II (a voluntary, savings account from which you can withdraw funds at any time).
  • Investment Choices: You can decide how your money is invested by choosing from a range of asset classes, including equity, corporate bonds, and government securities.
  • Tax Benefits: Contributions to NPS are eligible for tax deductions under Section 80C and Section 80CCD(1B) of the Income Tax Act.

How to Use the NPS Calculator

  1. Enter Your Monthly Investment: Input the amount you plan to contribute to your NPS account each month.
  2. Provide Your Current Age and Retirement Age: This determines the total investment period.
  3. Set the Expected Returns: Enter the anticipated annual rate of return on your NPS investment.
  4. Click "Calculate" to see your estimated retirement benefits.

Interpreting the Results

  • Total Investment: The total amount you have contributed to your NPS account.
  • Total Corpus: The total value of your NPS account at retirement, including all your contributions and the returns earned.
  • Lumpsum Withdrawal: Upon retirement, you can withdraw up to 60% of your total corpus as a tax-free lumpsum. Our calculator shows an example with a 40% withdrawal.
  • Annuity Investment: The remaining portion of your corpus (at least 40%) must be used to purchase an annuity, which will provide you with a regular monthly pension.
  • Expected Monthly Pension: This is the estimated monthly pension you will receive from the annuity purchased with the remaining corpus.