Retirement
NPS Calculator
National Pension Scheme calculator
About the NPS calculator
Free NPS Calculator for National Pension Scheme corpus, monthly pension & tax benefits. Plan retirement with Tier-I & Tier-II calculations.
How the maths works
NPS Maturity Formula
Corpus = P × [((1 + R)^N - 1) / R] × (1 + R)- Corpus
- Total corpus at maturity
- P
- Monthly/Annual contribution
- R
- Expected annual return rate
- N
- Number of years until retirement
A worked example
NPS Investment Example
| Monthly Contribution | ₹5,000 |
| Expected Return | 10% per annum |
| Years to Retirement | 25 years |
Total Corpus: ₹59,51,325
How to use it
- Enter your monthly NPS contribution
- Input expected return rate
- Specify years until retirement
- Choose annuity percentage (40% minimum)
- Get corpus, lump sum, and pension details
What it accounts for
- Calculate NPS corpus at retirement
- Estimate monthly pension amount
- Understand tax benefits
- Plan retirement contributions
- Compare Tier-I and Tier-II accounts
Why it is worth working out
- Government co-contribution for certain categories
- Tax benefits under Section 80C and 80CCD
- Professional fund management
- Portable across jobs and locations
Questions people ask
What is the difference between NPS Tier 1 and Tier 2?
Tier 1 is the retirement account: it carries the tax deductions and is locked until 60. Tier 2 is a voluntary, withdraw-anytime account with no lock-in and, for most subscribers, no tax benefit at all. Opening Tier 2 expecting Tier 1 treatment is a common and expensive mistake.
What tax benefit does NPS give?
Under the old regime, contributions fall within the ₹1.5 lakh 80C limit, with an additional ₹50,000 available under 80CCD(1B). The employer's contribution under 80CCD(2) is deductible in both regimes, which makes it the more useful route for anyone on the new regime.
What happens to my NPS corpus at 60?
At least 40% must be used to buy an annuity, which produces a taxable monthly income for life. The remaining 60% can be withdrawn as a tax-free lump sum. The compulsory annuity is the part people underestimate: annuity rates are modest and the income is fully taxable.
Can I choose how NPS money is invested?
Yes. Active choice lets you set the split across equity, corporate debt, government securities and alternatives, with equity capped at 75%. Auto choice moves you down the risk ladder as you age. The equity cap is the main structural limit on long-run NPS returns.
Read more on this
- NPS Tier 1 and Tier 2 — what you are actually signing up for — Tier 1 carries the tax break and a compulsory annuity at 60. Tier 2 has neither the lock-in nor the deduction. Confusing them is an expensive mistake.
- NPS — the extra deduction, and the annuity attached to it — The additional tax break is real and the costs are among the lowest anywhere. The exit rules are the part to understand before you commit.
This calculator is for information and education. It is not financial advice — see the disclaimer.