NPS Calculator — Pension, Lump Sum & Tax Savings
Estimate your National Pension System retirement corpus, tax-free lump sum (60%), monthly pension from annuity (40%), and tax savings under Sections 80CCD(1), 80CCD(1B), and 80CCD(2). Enter monthly contribution, expected return, current age, and retirement age. NPS offers up to ₹2 lakh+ in extra tax deductions beyond 80C. Regulated by PFRDA.
Calculate NPS Retirement Corpus
How to Use the NPS Calculator
This tool estimates your NPS retirement corpus using SIP-style compounding, as the scheme is regulated by PFRDA and managed by the NPS Trust, invested through pension fund managers like SBI, LIC, UTI, HDFC, and others.
Step 1 — Set Monthly Contribution
Enter your monthly NPS contribution. Minimum is ₹500/year but for meaningful corpus, ₹5K–50K/month is recommended. Higher contribution maximises tax benefits.
Step 2 — Set Return and Age
Choose expected return based on your asset allocation. Enter current age and desired retirement age (default 60, can defer to 75).
Step 3 — View Projections
Get total corpus, 60% lump sum, 40% annuity value, estimated monthly pension, total invested, returns earned, tax savings, and year-wise growth table.
CA Tip: NPS gives up to ₹2 lakh+ in deductions: ₹1.5L under 80CCD(1) within 80C + ₹50K extra under 80CCD(1B). Employer contribution under 80CCD(2) is unlimited (up to 14% of basic). At 30% bracket, ₹2L deduction saves ₹60K+ in tax annually. ICAI recommends NPS as a core retirement tool.
NPS Tax Benefits — Sections 80CCD
| Section | Benefit | Limit | New Regime? |
|---|---|---|---|
| 80CCD(1) | Employee contribution | 10% of salary (within 80C ₹1.5L) | No |
| 80CCD(1B) | Additional self contribution | ₹50,000 (over 80C) | No |
| 80CCD(2) | Employer contribution | 14% of basic (no cap) | Yes |
| Lump Sum (60%) | Withdrawal at retirement | 100% tax-free | Yes |
| Annuity (40%) | Monthly pension | Taxable at slab rate | Yes |
The 80CCD(2) employer deduction works in BOTH old and new regime — making it the single most powerful NPS tax benefit for salaried employees.
NPS Asset Allocation Options
| Scheme | Invests In | Historical Return | Risk |
|---|---|---|---|
| Equity (E) | Nifty 50, large cap stocks | 12–14% p.a. | High |
| Corporate Bond (C) | Corporate bonds, debentures | 9–10% p.a. | Moderate |
| Govt Securities (G) | Government bonds, T-bills | 8–9% p.a. | Low |
| Alternative (A) | REITs, InvITs, CMBS | 8–10% p.a. | Moderate |
Auto Choice adjusts allocation by age: Aggressive (75% E at 25, 15% at 55), Moderate (50% E), Conservative (25% E). Good for those who prefer hands-off management.
NPS Retirement Planning Tips
- Start early: Starting NPS at 25 vs 35 with same ₹10K/month can double the corpus at 60 due to 10 extra years of compounding.
- Maximise 80CCD(1B): Always invest ₹50K to claim the extra deduction over 80C. At 30% bracket, this saves ₹15,600/year (including cess).
- Get employer to contribute: Employer NPS under 80CCD(2) is the most tax-efficient benefit. Request your employer to restructure CTC to include NPS.
- Choose Active over Auto: If you're under 40, consider Active choice with 75% equity allocation for maximum growth. Switch to more conservative as you near 55.
- Don't withdraw early: Partial withdrawals reduce the compounding effect. Use only for genuine needs like home purchase or medical emergency.
Expert Tip: Combine NPS + PPF + ELSS for a comprehensive retirement strategy. NPS for growth + extra ₹50K deduction. PPF for guaranteed tax-free base. ELSS for liquidity (3-year lock-in). Our CAs can design your optimal retirement allocation. Talk to a CA →
Need retirement planning help? Our CAs assist with NPS enrolment, 80CCD tax optimization, retirement corpus planning, and ITR filing. Talk to a CA today →
