NPS Calculator
Estimate your retirement corpus, withdrawable lump sum, and expected monthly pension.
Inputs
A balanced NPS portfolio has historically delivered around 9 to 11 percent.
Minimum 40 percent of corpus must buy an annuity.
Retirement corpus
At retirement
Corpus split
The National Pension System is a voluntary, market linked retirement scheme regulated by PFRDA. You contribute every month or year throughout your working life, and the corpus is invested across equity, government bonds, corporate bonds, and alternative assets. At retirement, you withdraw up to 60 percent as a tax free lump sum, and the rest must buy an annuity that pays you a pension for life.
Tax benefits
Contributions up to ₹1.5 Lakh qualify under section 80C, with an additional ₹50,000 deduction available exclusively under section 80CCD(1B). Salaried employees can also claim employer NPS contributions of up to 10 percent of basic plus DA under section 80CCD(2), without any monetary cap. These benefits remain available in the new tax regime as well.
How returns are generated
NPS offers Active Choice, where you allocate across asset classes yourself, and Auto Choice, where the portfolio mix shifts towards safer assets as you age. Long term returns have ranged from 9 to 11 percent for most balanced portfolios, with higher equity allocations targeting closer to 11 to 12 percent over multi decade horizons.
Worked example
A monthly contribution of ₹5,000 from age 30 to 60, at an assumed 10 percent return, builds a corpus of roughly ₹1.13 Crore. If 40 percent goes into an annuity at 6 percent, the lump sum is around ₹68 Lakh and the monthly pension comes to about ₹22,600.
Frequently asked questions
NPS has lower fund management charges and offers a unique tax break under 80CCD(1B). Mutual funds offer more flexibility on withdrawal but no equivalent tax break. Many investors use NPS for the dedicated retirement bucket and SIPs for shorter goals.
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