NPS Calculator

Calculate your National Pension Scheme (NPS) maturity amount, lumpsum withdrawal value, and estimated monthly pension online instantly.

NPS Configuration

Maturity & Pension

Estimated Monthly Pension
₹0
Total NPS Corpus ₹0
Lumpsum Value (Max 60%) ₹0
Annuity Wealth (Min 40%) ₹0

National Pension System (NPS) Pension Calculator

Secure your golden years with our free online NPS Calculator. The National Pension System (NPS) is a voluntary, long-term retirement savings scheme in India designed to enable systematic savings. It is regulated by the PFRDA and is open to all Indian citizens.

Calculate your lump-sum maturity amount, the annuity purchase value, and the estimated monthly pension based on contributions and historical growth rates.

Key Reference & Specifications Table

NPS ComponentAnnuity Purchase RulesTax StatusInterest Yield (Approx)
Lump Sum WithdrawalUp to 60% of total corpus100% Tax-FreeVaries based on equity/debt choices
Annuity InvestmentMinimum 40% of corpus (mandatory)Tax-deferred until payoutAnnuity pension rate (approx 5-7%)
Tax Deduction (80C)Up to ₹1.5 LakhsShared with standard 80C poolEquity/corporate/government bonds
Tax Deduction (80CCD)Additional ₹50,000Exclusive NPS deductionIncreases effective yield

How to Use the Online NPS Calculator

  1. Input your monthly contribution amount or lump sum saving goal.
  2. Enter your current age and planned retirement age (usually 60).
  3. Set the expected rate of return (%) and select the annuity percentage (minimum 40%).
  4. Review your total accumulated wealth, lump-sum payout, and monthly pension.

Frequently Asked Questions (FAQs)

What is the National Pension System (NPS)?

NPS is a government-backed retirement scheme that allows individuals to build a retirement corpus. At age 60, you can withdraw up to 60% as a tax-free lump sum, while the remaining 40% must be used to purchase an annuity to receive a monthly pension.

What is the mandatory annuity purchase limit in NPS?

Upon reaching 60 years of age, you must use at least 40% of your accumulated NPS corpus to purchase an annuity (monthly pension scheme). You can choose to invest up to 100% in annuity if you prefer a higher pension.

How is NPS interest calculated?

NPS returns are market-linked and do not have a fixed interest rate. Your money is invested in active funds consisting of Equities (E), Corporate Debt (C), Government Securities (G), and Alternative Assets (A).

What are the tax benefits of investing in NPS?

You can claim deductions up to ₹1.5 Lakhs under Section 80CCD(1) (part of 80C) and an exclusive additional deduction of ₹50,000 under Section 80CCD(1B), making a total deduction of ₹2 Lakhs per year.

What is the difference between Tier-1 and Tier-2 NPS accounts?

Tier-1 is a mandatory retirement account with strict withdrawal rules and tax benefits. Tier-2 is a voluntary savings account with flexible withdrawal options, but offers no tax benefits.

Can I withdraw my NPS corpus before age 60?

Partial withdrawals up to 25% of your own contributions are allowed after 3 years for specific events (higher education, marriage, home buying, critical illness). Premature exit before 60 requires purchasing annuity with 80% of the corpus.

What are Active Choice and Auto Choice in NPS?

Active Choice allows you to decide the percentage allocation in equity (max 75%) and debt. Auto Choice adjusts the asset allocation automatically based on your age (LC75, LC50, LC25 lifecycle funds).

Is the NPS lump-sum withdrawal taxable?

No. The 60% lump-sum withdrawal allowed at age 60 is 100% tax-exempt. However, the monthly pension received from the remaining 40% annuity is taxable as per your income tax slab.

Who is eligible to open an NPS account?

All Indian citizens (resident or non-resident) aged between 18 and 70 years can open an NPS account.

Can I change my NPS fund manager?

Yes, you can change your Pension Fund Manager (PFM) and asset allocation choices online once every financial year.