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NPS Calculator

Estimate your retirement corpus and monthly pension with our National Pension System (NPS) Calculator.

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Minimum 40% must be used to purchase annuity.

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Total Investment₹ 0
Interest Earned₹ 0
Total Corpus₹ 0
Lumpsum Amount₹ 0
Monthly Pension₹ 0

What is an NPS Calculator?

An NPS (National Pension System) Calculator is a tool that helps you estimate the pension and lump sum amount you will receive upon retirement. NPS is a voluntary, long-term retirement savings scheme designed to enable systematic savings. It offers a mix of equity, corporate debt, and government bonds. This calculator helps you determine how much you need to invest monthly to achieve your desired monthly pension.

How It Works

The NPS calculator projects your total corpus at the age of 60 based on your monthly contribution and expected return. At maturity, you can withdraw up to 60% of the corpus as a tax-free lump sum. The remaining 40% (minimum) must be used to purchase an annuity, which provides a monthly pension.

Corpus = P * [ (1+r)^n - 1 ] / r * (1+r) Where: P = Monthly Investment r = Monthly rate of return n = Total months of investment

Example Calculation

Scenario

Rohan (age 30) invests ₹5,000/month in NPS until age 60. Expected return: 10%. Annuity purchase: 40%. Annuity rate: 6%.

  • 1.Investment Period = 30 years (360 months)
  • 2.Total Principal Invested = ₹18,00,000
  • 3.Estimated Total Corpus at 60 ≈ ₹1.13 Crore
  • 4.Lump Sum Withdrawal (60%) ≈ ₹68 Lakhs
  • 5.Annuity Value (40%) ≈ ₹45 Lakhs
  • 6.Expected Monthly Pension ≈ ₹22,500

Why This Tool is Useful

  • ✓Helps in precise retirement planning by showing the corpus and pension split.
  • ✓Highlights the tax benefits under Section 80CCD(1B) (additional ₹50,000).
  • ✓Shows the impact of starting early due to compounding.
  • ✓Allows you to experiment with different annuity percentages.
  • ✓Provides a realistic picture of your post-retirement income.

Tips & Comparison

  • •Additional Tax Benefit: NPS offers an exclusive deduction of ₹50,000 under Sec 80CCD(1B) over and above the ₹1.5L 80C limit.
  • •Asset Allocation: You can choose 'Active Choice' to decide your asset mix (Equity/Debt) or 'Auto Choice' for age-based allocation.
  • •Equity Exposure: NPS is one of the few government-backed schemes that allows equity exposure (up to 75%), offering potential for higher returns.
  • •Annuity is Taxable: While the lump sum withdrawal (60%) is tax-free, the monthly pension you receive is taxable as per your slab.

Frequently Asked Questions (FAQs)