NPS Calculator
Finance & InvestmentProject an NPS corpus and, more usefully, the monthly pension the compulsory annuity will actually pay.
Runs entirely in your browser — nothing is uploaded
The corpus is the easy part — it is an ordinary monthly investment compounding until you are 60. What makes NPS different is what happens then: at least 40% of it is compulsorily converted into an annuity, and the pension that annuity pays is usually far smaller than the corpus makes it feel. This shows both figures, because the pension is the number the scheme actually delivers and the one worth planning around.
What people do next
Features
- Corpus projection from a monthly contribution to your chosen retirement age.
- Splits the corpus into the tax-free lump sum and the compulsory annuity.
- Shows the monthly pension the annuity would pay.
- Enforces the statutory 40% minimum annuity share.
- Lets you raise the annuity share above the minimum to see the trade.
How to use the NPS Calculator
- 1Enter your monthly contribution and your age now.
- 2Set the retirement age — 60 is standard, deferral to 75 is allowed.
- 3Set an expected return for the accumulation years.
- 4Set the share going to the annuity — 40% is the legal minimum.
- 5Set an annuity rate, and read the monthly pension rather than the corpus.
Frequently asked questions
How much pension will NPS give me?
That depends on the annuity, not the corpus. At least 40% of your corpus must buy one, and the pension is that amount at whatever rate the insurer offers when you buy — currently around 6%. A ₹1 crore corpus with 40% annuitised at 6% pays roughly ₹20,000 a month before tax, which surprises people who were looking at the crore.
How much of NPS can I withdraw at 60?
Up to 60% as a lump sum, and that portion is tax-free. The remaining 40% must purchase an annuity. If the total corpus is ₹5 lakh or less you may withdraw all of it, and you can annuitise more than 40% if you want a larger pension.
Is the NPS pension taxable?
Yes. The lump sum is tax-free but the annuity income is taxed as ordinary income in each year you receive it, at your slab rate. So the monthly figure shown here is before tax — worth remembering when comparing it against a target that is expressed in take-home terms.
What tax benefit does NPS give while I am contributing?
Up to ₹1.5 lakh under 80C, plus an additional ₹50,000 under 80CCD(1B) that is exclusive to NPS — the reason many people contribute exactly ₹50,000 a year to it. Employer contributions have their own limit under 80CCD(2). These deductions apply under the old regime; the new regime allows only the employer contribution.
Is NPS better than EPF?
They do different jobs. EPF pays a fixed declared rate with no market risk and is tax-free at maturity. NPS is market-linked, so it may return more over a long horizon, but it forces at least 40% into an annuity and taxes that income. Most people end up with both rather than choosing.