NPS Calculator
Plan your retirement with the National Pension System. Calculate your total corpus at age 60, tax-free lumpsum, and expected monthly pension.
Investment Details
NPS matures at age 60.
Historically, NPS equity funds have delivered 10-12% p.a.
At Maturity (Age 60)
Minimum 40% of corpus must be used to buy an annuity (pension).
The interest rate offered by the insurance company on your annuity.
Estimated Monthly Pension
₹45,587
Starting from age 60, for life.
Total Corpus at Age 60
₹2,27,93,253
Invested: ₹36,00,000
Tax-Free Lumpsum
₹1,36,75,952
60% of total corpus
Wealth Growth
Maturity Allocation
Understanding the National Pension System (NPS)
NPS is a highly efficient, low-cost retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It allows you to invest in a mix of Equity, Corporate Bonds, and Government Securities.
Triple Tax Benefits
- • Up to ₹1.5L deduction under Sec 80C.
- • Extra ₹50,000 deduction under Sec 80CCD(1B).
- • 60% of the maturity corpus is entirely tax-free.
Maturity Rules (Age 60)
When you turn 60, you can withdraw a maximum of 60% of your corpus as a tax-free lumpsum. The remaining 40% (minimum) must be used to purchase an annuity, which provides your monthly pension.
Active vs. Auto Choice
NPS allows you to choose how your money is invested. Active Choice lets you decide your asset allocation (up to 75% in Equity). Auto Choice automatically reduces your equity exposure as you get older, protecting your corpus from market volatility near retirement.
Frequently Asked Questions
What is the National Pension System (NPS)?
NPS is a voluntary, long-term retirement savings scheme initiated by the Government of India. It is regulated by the PFRDA and offers market-linked returns to help you build a retirement corpus.
What are the tax benefits of NPS?
NPS offers triple tax benefits: 1) Up to ₹1.5 Lakhs deduction under Sec 80C. 2) An exclusive additional deduction of up to ₹50,000 under Sec 80CCD(1B). 3) At maturity (age 60), up to 60% of the corpus withdrawn as lumpsum is completely tax-free.
What is the minimum annuity percentage?
At age 60, you must use at least 40% of your total accumulated NPS corpus to purchase an annuity (a regular pension plan) from an IRDAI-regulated life insurance company. The remaining 60% can be withdrawn as a tax-free lumpsum.
Is the monthly pension from NPS taxable?
Yes, the monthly pension (annuity) you receive is treated as regular income and will be taxed according to your applicable income tax slab in the year of receipt.
Can I withdraw from NPS before age 60?
Premature withdrawal is allowed under specific conditions (like medical emergencies, higher education of children, buying a house) after 3 years of joining. You can withdraw up to 25% of your own contributions. If you exit NPS entirely before age 60, you must use 80% of the corpus to buy an annuity.