Calculate National Pension System (NPS) maturity corpus, monthly pension, and tax savings. Models 80CCD(1) + 80CCD(1B) deductions and the annuity-vs-lumpsum split at retirement age 60.
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NPS Calculator
Calculate National Pension System (NPS) maturity corpus, monthly pension, and tax savings. Models 80CCD(1) + 80CCD(1B) deductions and the annuity-vs-lumpsum split at retirement age 60.
NPS Details
Entry age 18-59; corpus is grown until retirement at 60
~10% for equity-heavy mix · ~8% for debt-heavy
Minimum 40% must be used to purchase annuity per NPS rules
Typical insurer annuity rate for life cover
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What-If Corpus at Age 60
₹1,13,96,627
Corpus at Retirement
₹1,13,96,627
Corpus at retirement: ₹1,13,96,627Monthly pension: ₹22,793 · Tax-free lumpsum: ₹68,37,976 · Annual tax saved (30% slab): ₹18,000
Total Contribution
₹18.0 L
Annuity Corpus
₹45.6 L
Contributions vs Returns over time
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What-If Corpus at Age 60
₹1,13,96,627
How It Works
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It pools monthly contributions into a market-linked corpus invested across equity, corporate debt, and government securities — historically delivering 9-12% annualized returns over long horizons depending on fund mix. At age 60, the accumulated corpus splits between a tax-free lumpsum withdrawal and a mandatory annuity that pays you a lifelong monthly pension.
NPS corpus formula
M = P × [((1 + i)n − 1) / i] × (1 + i)
Where P = monthly contribution, i = monthly rate of return (annual ÷ 12 ÷ 100), n = total months until age 60. The extra (1 + i) reflects that each contribution lands at the start of the month (annuity-due).
The 60-40 split at retirement
At age 60, NPS rules require at least 40% of the corpus to be used to purchase an annuity from a PFRDA-empanelled life insurer. The annuity provides a monthly pension for life. The remaining (up to 60%) is withdrawn as a single tax-free lumpsum. You can choose to annuitize more than 40% — a higher annuity share means a larger monthly pension at the cost of a smaller lumpsum.
Tax benefits — 80CCD(1) + 80CCD(1B)
Section 80CCD(1) allows a deduction of up to ₹1.5 lakh per year (shared with the 80C ceiling). Section 80CCD(1B) provides an additional ₹50,000 deduction exclusive to NPS — over and above the 80C cap, taking the total possible deduction to ₹2 lakh per year. A 30%-slab taxpayer contributing the full ₹2 lakh saves up to ₹60,000 in income tax every year.
Returns are market-linked
Unlike PPF or EPF, NPS returns are not guaranteed — they depend on the performance of your chosen scheme (Active or Auto choice) and the fund managers you select. Equity-heavy allocations have historically averaged 11-13%, balanced mixes around 9-10%, and debt-heavy schemes around 7-8%. PFRDA caps equity exposure at 75% up to age 50, tapering thereafter.
Sources & method
Tax slabs, deductions, rebates and surcharge follow the rules notified by the Government of India for the selected year. Based on the Income Tax Department. See how we calculate.
Frequently Asked Questions
The National Pension System (NPS) is a voluntary, defined-contribution retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Subscribers contribute monthly into a Tier I account, the corpus is invested in a market-linked mix of equity, corporate debt, and government securities, and at age 60 the accumulated corpus is split between a tax-free lumpsum withdrawal and a mandatory annuity that provides a lifelong monthly pension. NPS is open to all citizens aged 18-70, including the self-employed.
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