Project your National Pension System (NPS) corpus at retirement, estimated monthly pension from the mandatory 40% annuity, and tax savings under Sections 80CCD(1) and 80CCD(1B). Supports equity-heavy (E), conservative (C), and government securities (G) allocation returns.
Step 1. Enter your monthly NPS contribution and current balance.
Step 2. Enter years to retirement and expected annual return based on your fund choice.
Step 3. Enter the annuity rate offered by your preferred annuity provider.
Step 4. The calculator projects total corpus, lump sum, annuity amount, and monthly pension.
With the default inputs loaded in the form, the calculator produces a starting result you can use as a baseline. Change one field at a time to compare a new scenario.
NPS (National Pension System) is a government-backed defined contribution pension system for Indian citizens. It offers market-linked returns with professional fund management and significant tax advantages.
Tax advantages: 80CCD(1) allows deduction of up to 10% of salary (or 20% of income for self-employed) within the Rs.1.5 lakh 80C limit. 80CCD(1B) allows an additional Rs.50,000 NPS deduction over and above the 80C limit — potentially saving Rs.15,000+ per year for those in the 30% bracket.
At retirement (age 60), you can withdraw 60% of the corpus as a tax-free lump sum. The remaining 40% must be used to purchase an annuity — generating a monthly pension. Annuity rates typically range from 5.5-7% annually.
NPS equity allocation (Tier I): you can choose up to 75% equity (E class) in active choice. Lifecycle Fund (auto choice) gradually reduces equity allocation as you approach retirement.
Section 80CCD(1B) allows an additional Rs.50,000 deduction for NPS contributions, separate from the Rs.1.5 lakh 80C limit. For a 30% tax bracket investor, this saves Rs.15,000 in income tax — making NPS's effective cost much lower.
After 3 years, partial withdrawal of up to 25% of own contributions is allowed for specific reasons (higher education, home purchase, marriage, medical treatment). Premature exit before 60 requires purchasing an annuity with 80% of corpus.
Tier I: mandatory pension account with withdrawal restrictions and tax benefits. Tier II: voluntary savings account with no withdrawal restrictions but no tax benefits. Tier II requires an active Tier I account.
For long investment horizons (20+ years), equity-heavy allocation (75% E class) has historically outperformed. Scheme C (corporate bonds) offers better returns than Scheme G (government securities) with moderate risk. Compare fund managers' historical 10-year returns on NPS Trust website.
Computes PPF maturity value at 7.1% annual compounded interest for 15-year maturity with optional extension projections. Shows interest earned and effective annual return.
Projects EPF corpus using compound interest on current balance plus future contributions with salary growth. Compares against retirement income needs and shows the gap.
Computes standard and step-up SIP future value, adds existing corpus growth, and adjusts for inflation to show real purchasing power at end of investment period.
Disclaimer: Results from this calculator are for informational and planning purposes only and do not constitute financial, legal, or professional advice. Always verify important calculations with a qualified professional.
