Calculate your National Pension Scheme corpus and retirement income with tax benefits.
| Employee Contribution | Flexible, no fixed limit (for salaried) |
| Tax Deduction Limit (Tier 1) | Up to ₹1.5 lakh/year under Section 80C |
| Additional Tax Benefit | ₹50,000/year extra under Section 80CCD(1B) |
| Total Tax Deductible Contribution | Up to ₹2 lakh/year (₹1.5L + ₹50,000) |
| Tier 2 Account | No contribution limit or tax deduction |
| Lump Sum Withdrawal at 60 | Up to 60% is tax-free |
| Remaining Balance (40%) | Must be used for annuity (income taxable) |
| Partial Withdrawal (After 7 years) | Up to 50% of balance or previous year balance (whichever is lower) |
| Minimum Retirement Age | 60 years |
The National Pension Scheme (NPS) is India's voluntary, individual account-based retirement savings scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA). Unlike traditional pension plans, NPS gives you control over your investment choices and charges minimal fees.
Launched in 1999, NPS is available to all Indian citizens aged 18-65 years. You contribute regularly during your earning years, and at retirement (minimum age 60), you receive a lump sum and monthly pension. NPS offers significant tax benefits under Section 80C and 80CCD of the Income Tax Act.
This NPS Calculator helps you estimate your retirement corpus and pension income based on three key inputs:
Using these inputs, the calculator instantly shows:
This helps you plan your retirement and ensure you have sufficient corpus for post-retirement needs.
The NPS Calculator uses the standard compound interest formula for SIP (Systematic Investment Plan) to compute your corpus:
Future Value = Monthly Investment × [((1 + Rate/12)^(Months) - 1) / (Rate/12)] × (1 + Rate/12)
The calculation assumes:
The longer you invest in NPS, the stronger the compounding effect, resulting in significantly higher corpus at retirement.
| Feature | NPS Tier 1 | NPS Tier 2 |
|---|---|---|
| Purpose | Long-term retirement savings | Flexible short/medium-term savings |
| Tax Benefits | Section 80C (₹1.5L) + 80CCD(1B) (₹50k) | No tax deduction |
| Withdrawal | Restricted; available after retirement/50+ | Fully flexible; withdraw anytime |
| Lump Sum at Retirement | Up to 60% tax-free, 40% to annuity | No mandatory annuity requirement |
| Ideal For | Retirement planning with tax savings | Emergency fund, short-term goals |
Most investors should prioritize Tier 1 for retirement, then use Tier 2 for additional flexibility.
Tax Advantages:
Limitations to Consider:
To keep calculations transparent and simple, this NPS calculator assumes:
At retirement, you can withdraw up to 60% as lump sum; the remaining 40% must purchase an annuity for regular pension income.
Growth Over Time Chart: This line chart visualizes your NPS corpus growth year-by-year. It shows how your monthly contributions and investment returns compound over time, demonstrating the power of long-term investing.
Investment vs Gains Breakdown: The ring chart separates your total contributions from the investment gains/returns. This helps you understand what portion of your corpus comes from your own money versus market returns.
These visuals make it easier to appreciate why consistent, long-term NPS investment is powerful for building retirement wealth.
This calculator is ideal for:
NPS is particularly beneficial for those who want to maintain control over their investments while enjoying tax benefits and guaranteed pension income at retirement.
This calculator is provided for educational and planning purposes only. It is not financial advice. NPS returns are market-linked and depend on fund choice, market performance, and economic conditions. Tax benefits, contribution limits, withdrawal rules, and annuity options are subject to change based on regulatory updates and your personal tax situation. Always consult a qualified financial advisor before making investment decisions or finalizing your retirement plan.
Last updated: 31 Jan 2026