NPS Calculator

The National Pension System (NPS) is a government-backed, voluntary retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It is open to all Indian citizens aged 18–70. Contributions are invested in a mix of equities, corporate bonds, and government securities based on your chosen asset allocation, and your corpus grows until retirement at age 60.

At retirement (age 60), you can withdraw up to 60% of the corpus as a lump sum, which is completely tax-free. The remaining minimum 40% must be used to purchase an annuity plan from a PFRDA-empanelled insurance company, which provides a regular monthly pension. You can choose to put more than 40% into the annuity for a higher pension.

NPS offers tax benefits under three sections:

• Section 80CCD(1): Up to 10% of salary (or 20% of gross income for self-employed), within the ₹1.5L overall 80C ceiling.
• Section 80CCD(1B): Additional deduction of up to ₹50,000 over and above the 80C limit — an exclusive NPS benefit.
• Section 80CCD(2): Employer's contribution up to 10% of salary is deductible without any ceiling.

NPS returns depend on your chosen asset allocation. Historically, equity-heavy NPS Tier-I portfolios have delivered 10–12% CAGR over the long term, while balanced portfolios average 8–10%. For conservative planning, 8–10% is a reasonable assumption. This calculator lets you input any rate to model different scenarios.