NPS Calculator (National Pension System)
Project your Tier I corpus from monthly contributions with compound growth, then split the corpus between lump sum and annuity purchase and see an illustrative monthly pension. Rules change — verify with PFRDA / your PoP.
Disclaimer: NPS has regulatory minimums, multiple fund managers, and evolving exit norms. Tax positions depend on salary and regime — treat outputs as learning aids, not tax or product advice.
Inputs
Minimum commonly 40% — adjust to see lump sum vs annuity trade-off.
Used here as a simple rate to illustrate monthly income from the annuity corpus.
Results
Estimated corpus at retirement
Year-by-year corpus (illustrative)
| Year | Cumulative invested | Est. corpus |
|---|
NPS basics (India)
NPS is a defined-contribution pension system: you invest regularly, choose asset allocation within allowed schemes, and at exit you typically use part of the corpus to buy a life annuity and withdraw the rest as lump sum (within regulatory limits). Returns are not guaranteed — we use your assumed growth rate only for illustration.
Tax benefits: Employee contributions may count within Section 80C limits; an additional deduction under 80CCD(1B) (up to ₹50,000 a year for Tier I) is widely used — confirm eligibility with your CA. Employer contributions have separate treatment.
Tier I vs Tier II: Tier I is the locked pension account; Tier II is more liquid and does not carry the same bundle of pension-only rules — many people focus on Tier I for long retirement savings.
Compared to PPF / EPF: PPF is a sovereign small savings product with a known rate rhythm; EPF is salary-linked; NPS is market-linked with pension fund choices — compare liquidity, tax on exit, and annuity requirement before choosing one as “the” vehicle.
Learn the rules
Check PFRDA / CRA portals for current exit and annuity norms.
FAQ
Is the pension guaranteed?
No — annuity rates and market returns vary; the “pension” line is a simplified illustration.
Why doesn’t lump sum show 60%?
You control the annuity %; if it is 40%, lump sum is roughly 60% of corpus in a simple split model.