NPS Calculator
Calculate your retirement corpus, tax-free lumpsum, and monthly pension instantly.
Plan a Secure Retirement with the NPS Calculator
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by the PFRDA (Pension Fund Regulatory and Development Authority) and the Central Government of India. It is designed to enable systematic savings and provide a stable monthly pension post-retirement. Our NPS Calculator gives you a clear picture of how your small monthly contributions can build a massive retirement corpus.
How does NPS Calculation Work?
- Compounding: Your monthly investment earns compound interest based on market-linked returns (Equity, Corporate Bonds, and Govt. Securities).
- Maturity Corpus: When you turn 60, your total invested amount plus the accumulated interest becomes your Maturity Corpus.
- Lumpsum Withdrawal: You can withdraw up to 60% of this corpus absolutely tax-free.
- Monthly Pension (Annuity): A minimum of 40% of your corpus must be mandatorily used to purchase an Annuity plan from a life insurance company, which will pay you a fixed monthly pension for the rest of your life.
Frequently Asked Questions
What are the tax benefits of investing in NPS?
NPS offers brilliant tax benefits. You get deductions up to ₹1.5 Lakhs under Section 80C. Plus, you get an exclusive additional deduction of ₹50,000 under Section 80CCD(1B), making the total tax benefit up to ₹2 Lakhs per year.
What is the minimum annuity purchase required?
At the age of 60, it is mandatory to utilize at least 40% of your total accumulated corpus to purchase an annuity (regular pension). The remaining 60% can be withdrawn as a tax-free lumpsum.
Can I withdraw money from NPS before turning 60?
Premature withdrawals are restricted to ensure your retirement is secure. However, partial withdrawals up to 25% of your own contributions are allowed after 3 years for specific reasons like children's higher education, marriage, or critical illness.