NPS Calculator — Plan Your Retirement Corpus with NPS
Calculate NPS maturity amount and monthly pension estimate. Understand Tier I and Tier II accounts and additional Rs 50000 tax benefit under Section.
The National Pension System is a government-sponsored retirement savings scheme that offers one of the best combinations of tax benefits and market-linked returns in India. NPS allows you to invest in equity corporate bonds and government securities based on your risk appetite. The additional tax deduction of Rs 50000 under Section 80CCD(1B) over and above the Rs 1.5 lakh limit of 80C makes NPS extremely attractive for tax planning especially for those in the 30% tax bracket.
How much pension will I get from NPS?
Your monthly pension depends on your total corpus and the annuity rate at retirement. If you invest Rs 5000 per month from age 25 to 60 at 10% expected return your corpus would be approximately Rs 1.14 crore. You must use 40% of the corpus to buy an annuity and can withdraw 60% tax-free. The annuity portion would provide roughly Rs 30000-38000 per month pension.
Calculate Now
NPS / Pension Calculator
Understanding Your Investment Returns
This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.
Important Considerations
Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.
Key Information
| Parameter | Details |
|---|---|
| Additional Tax Benefit 80CCD(1B) | Rs 50000 (above 80C limit) |
| Equity Returns (Historical) | 9% - 12% CAGR |
| Corporate Bond Returns | 8% - 10% CAGR |
| Government Securities Returns | 7% - 8% CAGR |
Plan your NPS retirement corpus
Get accurate results instantly — 100% free, no signup required
Use Calculator NowFrequently Asked Questions
How much pension will I get from NPS?
Your monthly pension depends on your total corpus and the annuity rate at retirement. If you invest Rs 5000 per month from age 25 to 60 at 10% expected return your corpus would be approximately Rs 1.14 crore. You must use 40% of the corpus to buy an annuity and can withdraw 60% tax-free. The annuity portion would provide roughly Rs 30000-38000 per month pension.
Can I withdraw from NPS before retirement?
Partial withdrawal from NPS Tier I is allowed after 3 years for specific reasons like children education marriage medical treatment or home purchase. You can withdraw up to 25% of your own contributions. The withdrawal is tax-free. Complete exit before 60 is allowed after 5 years but 80% of the corpus must be used to buy an annuity.
Is NPS better than PPF?
NPS offers potentially higher returns (9-12% in equity option) compared to PPF (7.1%) but carries market risk. NPS provides an additional Rs 50000 tax benefit under 80CCD(1B) beyond the 80C limit. However PPF maturity is 100% tax-free while NPS annuity income is taxable. A combination of both gives optimal tax benefits and risk-return balance.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Is SIP better than lumpsum investment?
SIP invests a fixed amount monthly, averaging out market volatility through rupee cost averaging. Lumpsum works better when markets are low. For most investors, SIP builds discipline and removes the need to time the market.
How much should I invest monthly to become a crorepati?
At 12% expected returns, a monthly SIP of Rs 5,000 for 30 years grows to approximately Rs 1.76 crore. Increasing your SIP by 10% annually makes the corpus even larger. Start early, stay consistent.
Are investment returns taxable?
PPF returns are tax-free. Equity mutual fund LTCG above Rs 1.25 lakh/year is taxed at 12.5%. FD interest is taxed at your slab rate. NPS offers an additional Rs 50,000 deduction under 80CCD(1B).
Related Calculators
More Investment Calculators
Last updated: March 2026