NPS Calculator
Estimate your NPS (National Pension System) retirement corpus with our free online NPS Calculator. Enter your monthly contribution, expected return, and retirement age to see your projected corpus, lump sum, and an estimated monthly pension — built for Indian retirement planning.
Calculate NPS Corpus & Pension
NPS Calculation Results
Pension shown is an estimate. Actual annuity payout depends on annuity plan, insurer rates, and retirement age.
How NPS Works in India
NPS (National Pension System) is a long-term retirement savings scheme in India regulated by PFRDA. It helps you build a retirement corpus through disciplined investing, and at maturity a part of the corpus is used to purchase an annuity (monthly pension).
NPS Corpus Calculation (Monthly Contributions)
FV = P × [((1 + i)n − 1) / i] × (1 + i)
- P = Monthly contribution
- i = Monthly return rate (annual rate ÷ 12)
- n = Total months until retirement
Why NPS is Popular
- Retirement discipline: Builds a long-term habit, ideal for salary earners.
- Tax benefits: Contributions may be eligible for deductions (as per prevailing rules).
- Low cost: NPS is known for low fund management charges.
- Flexibility: Choose asset allocation and investment style.
NPS Calculation Example
Example: ₹5,000/month from age 30 to 60 at 10% expected return:
- Monthly Contribution: ₹5,000
- Expected Return: 10% p.a.
- Investment Period: 30 years
This builds a large retirement corpus through compounding — the earlier you start, the bigger the benefit.
Quick Answers
What is NPS?
NPS (National Pension System) is a voluntary retirement savings scheme regulated by PFRDA. You invest in a mix of equity, debt, and government securities.
How is NPS corpus calculated?
Corpus is estimated using your monthly contribution, expected return, and years to retirement. The formula accounts for compounding of contributions and returns.
Is NPS return guaranteed?
No. NPS is market-linked; returns depend on asset allocation and market performance. This calculator uses an assumed return for estimation.
What are NPS tax benefits in India?
Contributions qualify for deduction under Section 80CCD(1), 80CCD(1B), and employer contribution under 80CCD(2). Partial withdrawal and annuity are subject to tax rules.
Can I withdraw NPS corpus at maturity?
A portion can be withdrawn as lump sum; the rest must be used to buy an annuity for regular pension. Withdrawal rules are set by PFRDA.
Frequently Asked Questions
Is NPS return guaranteed?
No. NPS returns are market-linked and depend on asset allocation (equity, corporate bonds, government securities) and market performance. This calculator uses an expected return for estimation.
How is monthly pension calculated in NPS?
At maturity, a portion of your corpus is used to buy an annuity. Actual pension depends on the annuity plan and insurer rates. This calculator shows a simple estimate using an annuity return rate.
What is the minimum annuity purchase percentage in NPS?
Rules can change. Traditionally, many NPS subscribers purchase a minimum percentage of corpus as annuity at maturity. Always check the latest PFRDA/NPS rules and your account type.
Is NPS better than PPF?
PPF offers government-backed, stable, tax-free returns with a long lock-in. NPS is market-linked and can potentially offer higher returns, but with market risk and annuity rules at maturity. Many investors use both for diversification.
Should I use CAGR for NPS returns?
For periodic contributions like NPS, XIRR is a better measure than CAGR. CAGR is more suitable for lump-sum investments. This calculator estimates corpus from monthly contributions using compounding.
What happens if I increase my NPS contribution later?
Increasing contributions later can still improve your corpus, but starting early usually has the biggest impact because compounding works longer. Even a small increase can create a large difference over 20–30 years.