NPS Calculator India — FY 2025-26
Estimate your National Pension System corpus and monthly pension at retirement. See tax benefits under 80CCD(1), 80CCD(1B), and 80CCD(2), and compare NPS with PPF and ELSS for the same investment amount.
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How to Use This Calculator
NPS Corpus tab
Enter your monthly contribution, current age, retirement age, and expected rate of return. The calculator projects your total corpus at retirement, splits it into lump sum (tax-free) and annuity portions, and estimates your monthly pension. Expand "More options" to add your existing NPS balance or adjust the annuity percentage and rate.
Tax Benefit tab
Enter your annual NPS contribution, tax regime, and basic salary. See your deductions under 80CCD(1), 80CCD(1B), and 80CCD(2), with the exact tax saved at your marginal slab rate. Toggle employer NPS contribution to include 80CCD(2) benefits — available in both old and new regimes.
NPS vs PPF vs ELSS tab
Compare the same annual investment across NPS, PPF, and ELSS mutual funds. See final corpus, tax treatment, liquidity, and risk profile side by side. Useful for deciding how to allocate your ₹1.5 lakh 80C limit.
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The Formula
NPS corpus grows through the power of compounding. Your monthly contributions earn returns based on your chosen asset allocation:
FV = P × [((1+r)^n − 1) / r] × (1+r) + C × (1+r)^n
Where: P = monthly contribution, r = monthly return rate, n = months to retirement, C = current corpus
At Maturity (Age 60):
Minimum 40% → Purchase annuity (monthly pension)
Maximum 60% → Tax-free lump sum withdrawal
Monthly Pension:
Pension = (Annuity Corpus × Annuity Rate) ÷ 12
NPS Tax Deductions:
80CCD(1): Up to 10% of salary, within ₹1.5L 80C limit (old regime only)
80CCD(1B): Additional ₹50,000 (old regime only)
80CCD(2): Employer contribution, up to 14% of salary (both regimes)
Expected Returns by Asset Class:
Equity (E): ~10-12% | Corporate Bonds (C): ~8-10%
Govt Securities (G): ~7-8% | Alternative (A): ~8-10%
NPS is a market-linked product — returns are not guaranteed. The actual corpus depends on your asset allocation choice (Active or Auto), fund manager performance, and market conditions over your investment period.
Example
Priya — 30-year-old IT professional, ₹5,000/month NPS contribution
Priya is 30, earns ₹12 lakh/year basic salary, contributes ₹5,000/month to NPS Tier I, and expects a blended return of 10% (moderate equity allocation). She plans to retire at 60.
Step 1: Corpus projection
Step 2: Withdrawal split
Step 3: Monthly pension
Step 4: Tax benefit (old regime)
With ₹5,000/month for 30 years, Priya can build a corpus of over ₹1 crore and receive a monthly pension of approximately ₹22,625, while saving ₹12,000/year in taxes.
FAQ
80CCD(1B): Additional ₹50,000 deduction over and above 80C. Available only in the old regime.
80CCD(2): Employer contribution up to 14% of basic salary (central govt) or 10% (private sector). No absolute cap. Available in both old and new regimes.
In the new tax regime (FY 2025-26), employee NPS contributions do not qualify for any deduction. Only employer contribution under 80CCD(2) is allowed.
NPS offers market-linked returns (historically 8-12%), partial tax-free withdrawal (60%), but forces 40% into an annuity (pension is taxable). NPS has higher return potential but also higher risk and less liquidity.
For pure retirement planning with equity exposure, NPS wins on potential returns. For guaranteed, fully tax-free maturity, PPF is better. Many investors use both.
Early exit (before 60): After 5 years, you can exit NPS. If corpus is above ₹2.5 lakh, minimum 80% must be used to buy an annuity (only 20% as lump sum). If corpus is below ₹2.5 lakh, the entire amount can be withdrawn as lump sum.