PocketNational Pension Scheme (NPS) Calculator
Plan your retirement retirement with the National Pension System (NPS) calculator. Choose your contributions, expected returns, and annuity rates to see your projected wealth at age 60.
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Projected Maturity Corpus
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Est. Monthly Pension
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Tax-Free Lumpsum Out
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Annuity Reinvested Corpus
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Total Principal Invested
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Wealth Accumulation Projections
NPS Calculation Method
NPS wealth accumulates monthly like a compound interest SIP up to the retirement age of 60. The formula used for accumulation is:
A = P × [ (1 + r)n - 1 ] / r × (1 + r)
Where P is monthly deposit, r is monthly rate of return, and n is total months. At retirement, the annuity portion is converted into a monthly pension using: pension = (Annuity Corpus × Annuity Rate) / 12.
Worked Example
If you start at age 30 and invest ₹10,000 per month until age 60 (30 years) with an expected 10% return, buying 40% annuity at 6% interest rate:
- Total invested: ₹36,00,000
- Final Maturity Corpus: ₹2,27,93,912
- Lumpsum (60%): ₹1,36,76,347
- Annuity Corpus (40%): ₹91,17,565
- Monthly Pension: ₹45,588
Frequently Asked Questions
What is the National Pension System (NPS)?
NPS is a voluntary retirement savings scheme designed to enable systematic savings and provide pension income. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
Is NPS maturity tax-free?
Yes, under current regulations, the 60% lumpsum withdrawal at age 60 is completely tax-free. The remaining 40% must be used to purchase an annuity, which is also tax-free at transfer, though the monthly pension payout is taxed according to your tax slabs.
What is the minimum annuity requirement?
At retirement, you must invest at least 40% of your accumulated corpus into purchasing an annuity from an approved life insurance provider. You can choose to invest up to 100% in annuity if you prefer a higher pension.
Can I withdraw from NPS before 60?
Partial withdrawals are allowed under special conditions (medical emergencies, education, home purchase) after 3 years, capped at 25% of your own contributions. Premature exit before 60 requires 80% of the corpus to be used for annuity purchase.
What are the tax benefits of NPS?
NPS offers deduction u/s 80CCD(1) up to ₹1.5 Lakh, plus an additional exclusive deduction of ₹50,000 u/s 80CCD(1B), making it a highly tax-efficient investment tool in India.