NPS Calculator

40% of corpus must be used to buy annuity; 60% is tax-free lumpsum.

The National Pension System (NPS) is a government-backed retirement savings scheme that provides market-linked returns with the lowest fund management charges in India (0.01% p.a.). Our NPS calculator estimates your retirement corpus based on your monthly contribution, expected return rate, years to retirement, and annuity allocation percentage.

NPS offers triple tax benefits: (1) Contribution up to ₹1.5 lakh deductible under Sec 80C, (2) Additional ₹50,000 deduction under Sec 80CCD(1B) — exclusively for NPS, making it unmatched for tax saving, (3) 60% of corpus at retirement is tax-free. The remaining 40% must be used to purchase an annuity (pension).

For a 30-year-old investing ₹5,000/month in NPS at 10% expected return until age 60, the projected corpus is approximately ₹1.13 crore. Assuming 40% annuity purchase at 6% annuity rate, the monthly pension would be around ₹22,600. Use our NPS pension calculator to model your own retirement scenario.