NPS Calculator: The National Pension Scheme (NPS) Calculator helps you project your retirement corpus based on:
✅ Monthly Contributions
✅ Expected Returns
✅ Investment Tenure

It is a crucial tool for retirement planning, helping you estimate your pension wealth under the NPS (Tier I & Tier II) accounts.

How NPS Returns are Calculated

NPS Formula (Future Value of Annuity):

FV=P×(1+r)n−1r×(1+r)

  • FV = Future Value (Maturity Corpus)

  • P = Monthly Contribution

  • r = Expected Monthly Return (Annual Return ÷ 12)

  • n = Total Number of Contributions (Years × 12)

Example Calculation:

  • Monthly Contribution (P): ₹5,000

  • Expected Annual Return (r): 10%

  • Tenure (n): 30 years (360 months)

Step 1: Convert annual return to monthly return

r=10%12≈0.00833 (0.833% per month)

Step 2: Apply NPS formula

FV=5,000×(1+0.00833)360−10.00833×(1+0.00833)≈∗∗₹1.14Crore∗∗

Total Invested Amount:

₹5,000×360=∗∗₹18Lakhs∗∗

Estimated Returns:

₹1.14Crore−₹18Lakhs=∗∗₹96Lakhs∗∗

Benefits of Using an NPS Calculator

✅ Estimates Retirement Corpus – Plan your pension fund
✅ Adjustable Contributions – See how increasing SIPs boosts returns
✅ Tax Efficiency – NPS offers ₹50,000 additional deduction (Sec 80CCD(1B))
✅ Compounding Effect – Long-term wealth growth projection
✅ Free & Easy – No registration required

NPS Withdrawal Rules (2024)

Withdrawal Stage Permitted Amount Tax Implications
At 60 (Maturity) 60% lump sum (tax-free) + 40% annuity (taxable as income) Partial tax exemption
Early Exit (After 10 yrs) 20% lump sum (tax-free) + 80% annuity Taxable as per slab
Premature (Before 10 yrs) Only 20% lump sum (taxable) Full taxation

Factors Affecting NPS Returns

Factor Impact on Returns
Equity Allocation (E Tier) Higher risk but better returns (up to 75%)
Government Bonds (G Tier) Lower risk, stable returns
Contribution Amount Higher SIP → Larger corpus
Tenure Longer duration → Higher compounding

NPS vs Other Retirement Plans

Feature NPS PPF EPF Mutual Funds
Returns 8-12% 7.1% 8.15% 12-15%
Tax Benefit ₹2 Lakh (80C + 80CCD(1B)) ₹1.5 Lakh (80C) ₹1.5 Lakh (80C) ₹1.5 Lakh (80C)
Liquidity Lock-in till 60 15-year lock-in Withdrawal allowed No lock-in
Annuity Compulsion 40% at maturity No annuity No annuity No annuity

FAQs on NPS Calculator

1. What is the best age to start NPS?

  • Early 20s to 30s (Longer tenure = Higher compounding).

2. Can I increase my NPS contribution later?

  • Yes, you can increase SIPs anytime.

3. Is NPS better than mutual funds for retirement?

  • NPS offers tax benefits but has annuity rules. MFs offer liquidity but no pension guarantee.

4. What happens if I stop NPS contributions?

  • Account remains inactive but can be revived later.

5. How is NPS taxed at maturity?

  • 60% lump sum = Tax-free | 40% annuity = Taxable as income.

Try Our Free NPS Calculator

Plan your retirement smarter with our NPS Calculator:
📌 Check different contribution levels
📌 Compare equity vs. debt returns
📌 Estimate tax benefits

Calculate Now & Secure Your Retirement!

Key Takeaways

  • NPS offers ₹50,000 extra tax deduction (80CCD(1B))

  • Equity (E) tier can give 10-12% returns

  • 40% annuity compulsory at maturity

  • Start early for maximum compounding benefits