NPS Calculator
About the NPS Calculator
The National Pension System (NPS) is a government-regulated retirement scheme. You invest regularly until age 60; the money is managed in a mix of equity and debt, so the corpus is market-linked. At 60 you take part of the corpus as a lumpsum and use the rest to buy an annuity that pays a monthly pension.
This calculator projects your corpus at 60 from your monthly contribution and an assumed return, then splits it into the lumpsum and the annuity, and estimates the monthly pension from the annuity rate you enter.
Frequently asked questions
How does the NPS calculator estimate my pension?
It compounds your monthly contributions to age 60 at the expected return, takes the share you choose as a lumpsum (up to 60%), and converts the rest (at least 40%) into a pension using the annuity rate you provide. Returns are market-linked, so it is an estimate.
What are the tax benefits of NPS?
Contributions qualify for deduction under Section 80CCD(1) within the ₹1.5 lakh 80C limit, plus an extra ₹50,000 under Section 80CCD(1B). At 60 the lumpsum (up to 60% of the corpus) is tax-free; the annuity income is taxed at your slab when received.
How much can I withdraw at 60?
You can take up to 60% of the corpus as a tax-free lumpsum and must use at least 40% to buy an annuity that provides your monthly pension. The split you model here changes both the lumpsum and the pension.
Is the NPS return guaranteed?
No. NPS invests in market-linked funds, so the corpus depends on how equity and debt perform over your working years. The rate you enter is a planning assumption, not a guaranteed return.
Is the NPS pension taxable?
The monthly pension from the annuity is treated as income and taxed at your slab rate in the year you receive it. The lumpsum taken at 60 (up to 60% of the corpus) is exempt.