NPS Calculator
Calculate National Pension System returns
Calculator Inputs
Results
Enter values to see results
About NPS Calculator
National Pension System (NPS) is a government-sponsored retirement savings scheme offering market-linked returns and tax benefits. It allows you to build a retirement corpus and receive regular monthly pension after retirement.
How Does NPS Work?
-
1
Open NPS account (Tier-I for retirement, Tier-II for flexible savings)
-
2
Invest regularly - minimum ₹1000/year, no maximum limit
-
3
Choose asset allocation: Equity (E), Corporate bonds (C), Government securities (G)
-
4
At retirement (60 years), you can withdraw 60% as lumpsum (tax-free)
-
5
Remaining 40% must be used to buy annuity for monthly pension
Example:
If you invest ₹5,000 monthly from age 30 to 60 at 10% return, you'll build a corpus of ₹1.13 crores! You can withdraw ₹68 lakhs lumpsum and get ₹34,000/month pension from remaining ₹45 lakhs.
Key Benefits
High Returns: Market-linked returns, historically 10-12% CAGR
Tax Benefits: Deduction up to ₹2 lakhs under 80CCD(1B) + 80C
Low Cost: Very low fund management charges (0.01% to 0.25%)
Flexible Investment: Choose your own asset allocation
Portable: Continue same account even if you change jobs
Additional Tax Benefit: 60% lumpsum withdrawal at retirement is tax-free
Frequently Asked Questions
Can I withdraw NPS before retirement?
Partial withdrawal of 25% is allowed for specific purposes like children's education, marriage, medical emergencies, or buying house. You can exit NPS before 60 years, but at least 80% must be used for annuity if exiting before 60 (only 40% if after 60).
What is the difference between Tier-I and Tier-II NPS?
Tier-I is locked till retirement and offers tax benefits. Tier-II is flexible like mutual fund with no lock-in but no tax benefits. You must have Tier-I to open Tier-II. Tier-I is for retirement, Tier-II for short-term goals.
How should I allocate assets in NPS?
For young investors (20-40 years), choose aggressive: 75% equity, 25% debt. For middle-age (40-50 years), choose balanced: 50% equity, 50% debt. Near retirement (50-60 years), choose conservative: 25-30% equity, 70-75% debt. You can also choose Auto mode where allocation adjusts with age.
Is NPS better than EPF?
NPS offers higher potential returns (market-linked) while EPF gives fixed returns (~8.25%). NPS has higher equity exposure and lower charges. EPF is safer with guaranteed returns. For retirement, having both is ideal - EPF for stability, NPS for growth.