What is NPS Calculator?
Calculate NPS corpus at retirement and estimated monthly pension based on your contribution and expected returns Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
At retirement, 40% of corpus must be used to buy an annuity (monthly pension). Remaining 60% can be withdrawn tax-free. Annuity rates are approximately 6-7% per annum.
How to Use This Calculator
- Enter your monthly NPS contribution amount
- Enter your current age and expected retirement age
- Enter expected annual return on NPS (7-10% for Tier-1)
- Enter expected annuity rate for pension calculation
- Click Calculate to see total corpus and estimated monthly pension
Worked Example
Monthly Contribution: ₹5,000 | Age: 30 | Retire at 60 | Return: 10% → Corpus: ₹1.13 Cr | 40% Annuity: ₹45L | Monthly Pension: ₹22,500
Why Use This Tool?
- Additional ₹50,000 tax deduction under Section 80CCD(1B) over 80C limit
- Government co-contribution for certain category subscribers
- Professional fund management across equity, bonds, and government securities
- Portable — continues even if you change jobs
Frequently Asked Questions
What is NPS and who can open an account?
NPS (National Pension System) is a government-regulated voluntary retirement savings scheme open to all Indian citizens aged 18-70. It offers market-linked returns through professional fund managers across equity (up to 75%), corporate bonds, and government securities.
What is the tax benefit for NPS?
Deduction of up to ₹1.5 lakh under Section 80CCD(1) within the 80C limit, plus an additional ₹50,000 under Section 80CCD(1B) exclusively for NPS — totaling ₹2 lakh tax deduction. Employer NPS contribution is also deductible under Section 80CCD(2).
Can I withdraw from NPS before retirement?
Partial withdrawal (up to 25% of own contribution) is allowed after 3 years for specific reasons: children's education, marriage, house construction, medical treatment. Full withdrawal is allowed after 60 years of age.
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