NPS Calculator
Calculate NPS retirement corpus and monthly pension. Includes Tier I and Tier II, employer contribution, 80CCD(1B) extra Rs 50K deduction and 60% lump sum vs 40% annuity split.
NPS Calculator — National Pension System
Results update instantly
Monthly NPS contribution (employee share)
NPS equity funds: 10-12% historical CAGR | Conservative: 8%
Estimates based on constant rate assumption. Actual returns may vary.
| Year | Invested | Returns | Total Value |
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NPS gives the best tax benefits of any investment in India. Section 80CCD(1B) allows an additional Rs 50,000 deduction over and above the Rs 1.5L 80C limit. At 30% bracket, this saves Rs 15,600 extra in tax per year — just for this additional deduction.
What is an NPS Calculator?
An NPS calculator estimates your retirement corpus and monthly pension from the National Pension System — India's government-backed voluntary pension scheme open to all citizens between 18 and 70 years. NPS combines market-linked returns (equity, corporate bonds, government securities) with the best tax treatment of any investment in India.
NPS corpus formula
Monthly pension = (40% of corpus x annuity rate) / 12
Annuity rates are typically 5.5-6.5% per year on the annuity corpus
NPS tax benefits — the most generous in India
NPS offers three distinct tax deduction layers that together exceed any other instrument: Section 80CCD(1) up to 10% of salary within Rs 1.5L limit; Section 80CCD(1B) an exclusive Rs 50,000 deduction; and Section 80CCD(2) where employer NPS contribution up to 14% of basic (government) or 10% (private) is fully deductible without any limit. A government employee with Rs 10L salary can save Rs 1L+ in tax annually through NPS alone.
Asset allocation in NPS — active vs auto choice
NPS offers two approaches: Active Choice where you decide the allocation between equity (up to 75%), corporate bonds, government securities, and alternative investments. Auto Choice (Lifecycle Fund) automatically reduces equity allocation as you age — from 75% equity at age 18 to 15% at age 55. For investors under 40, Active Choice with maximum equity allocation has historically given the best returns.
ThriftRupee tips for NPS subscribers
Tip 1: Max out 80CCD(1B) before any other 80C investment. The Rs 50,000 exclusive NPS deduction saves Rs 15,600 at 30% bracket with zero alternative. Fill this before choosing between ELSS, PPF, or tax-saver FD for the remaining 80C room.
Tip 2: Choose Tier-II for liquid savings. NPS Tier II investments in equity funds have low expense ratios (0.09%) — among the cheapest equity funds in India. Use Tier II as a liquid parking space for medium-term goals while keeping expenses minimal.
Tip 3: Equity maximum until 50, then gradual shift. NPS equity funds have given 12-14% CAGR over the past 10 years. Maximize equity allocation (75%) until age 50, then gradually shift to corporate bonds and government securities as you approach retirement.