NPS Calculator
Calculate National Pension Scheme maturity, lumpsum withdrawal, and monthly pension with annuity. Market-linked retirement planning.
NPS Investment Details
₹
Min ₹500/month or ₹6000/year%
Aggressive: 10-12%, Moderate: 8-10%years
years
Normal: 60, can defer till 75%
Min 40% mandatory for annuity%
Expected annuity return: 5-7%🏦
Enter NPS details
About NPS (National Pension Scheme)
NPS is a government-sponsored market-linked pension scheme offering retirement corpus + guaranteed monthly pension. Flexible, portable, and tax-efficient.
Key Features
- Minimum Investment: ₹500/month or ₹6,000/year
- Lock-in: Till 60 years (can defer till 75)
- Returns: Market-linked (8-12% historical average)
- Annuity: Min 40% corpus for annuity purchase (mandatory)
- Lumpsum: Max 60% corpus withdrawal at retirement
- Tax Benefits: 80CCD(1): ₹1.5L + 80CCD(1B): ₹50K extra = ₹2L total
Account Types
- Tier-I (Pension): Locked till 60, tax benefits, mandatory annuity
- Tier-II (Savings): No lock-in, no tax benefit, fully withdrawable
Asset Allocation Options
- Equity (E): Up to 75% in stocks (higher returns, higher risk)
- Corporate Bonds (C): Fixed income securities
- Government Securities (G): Safest, lowest returns
- Alternative (A): REITs, InvITs (max 5%)
- Auto Choice: Age-based auto allocation (Aggressive/Moderate/Conservative)
Withdrawal Options at Maturity (Age 60)
- Mandatory Annuity: Min 40% for monthly pension
- Lumpsum: Max 60% withdrawal (taxable)
- Defer: Continue till 75 (corpus keeps growing)
- Staggered: Withdraw 60% in 10 equal annual installments
Premature Withdrawal
- Before 60: 80% annuity, 20% lumpsum (only in specific cases)
- After 3 years: Partial withdrawal (max 25%) for medical, education, home
- Before 3 years: Only if critical illness/death
Tax Benefits
- 80CCD(1): Employee contribution up to ₹1.5L (within overall 80C limit)
- 80CCD(1B): Additional ₹50,000 deduction (exclusive, over and above 80C)
- 80CCD(2): Employer contribution (10% of salary, no limit)
- Maturity: 60% lumpsum taxable, 40% annuity corpus tax-free
- Pension Income: Taxable as salary
NPS vs Other Options
- NPS vs EPF: NPS market-linked (higher risk/return), EPF guaranteed 8.25%
- NPS vs PPF: NPS ₹2L tax benefit, PPF only ₹1.5L
- NPS vs Mutual Funds: NPS has annuity lock-in, MF fully flexible
- NPS vs APY: NPS corpus-based, APY fixed pension guarantee
Who Should Invest in NPS?
- Self-employed/businessmen (no EPF)
- Looking for additional ₹50K tax deduction (over 80C)
- Want market-linked returns for retirement
- Okay with 40% annuity lock-in
- Long investment horizon (20+ years)
Annuity Options at Retirement
- Life Annuity: Pension for life (stops on death)
- Joint Life: Pension continues for spouse
- Return of Purchase Price: Corpus returned to nominee on death
- Increasing Annuity: Pension increases 3% annually
Important Points
- PRAN (Permanent Retirement Account Number) — portable across jobs
- Can switch between active/auto choice anytime
- Exit load: 0.25% if exit before 60
- Nomination mandatory
What this NPS calculator does
The National Pension System (NPS) is a market-linked, government-regulated retirement scheme that lets you contribute monthly until age 60 in exchange for a tax-free 60% lumpsum and a lifelong monthly pension from the remaining 40%. The MONEX MINT NPS calculator projects your retirement corpus based on monthly contributions and expected return, then splits it into the lumpsum and the annuity corpus, applies a chosen annuity rate (typically 5.5-7%), and shows the resulting monthly pension. Use it to size contributions for a target pension, or to compare NPS against PPF, EPF and equity SIPs as a retirement vehicle.
How it's calculated
Corpus at retirement (FV) = P × [((1+r)^n − 1) / r] × (1+r) Lumpsum (tax-free) = 60% × FV Annuity corpus = 40% × FV (minimum, can be higher) Monthly pension = (Annuity corpus × annuity rate) ÷ 12
- P — Monthly NPS Tier-1 contribution
- r — Monthly return = expected annual return ÷ 12 ÷ 100
- n — Months till retirement = (60 − current age) × 12
- Annuity rate — Insurer payout rate, currently 5.5-7% depending on option chosen
Example: ₹10,000/month from age 30 to 60 at 10% expected return
- Monthly contribution P = ₹10,000 | Period n = 30 × 12 = 360 months | Expected return = 10%
- Monthly rate r = 10 ÷ 12 ÷ 100 = 0.00833
- FV = 10,000 × [((1.00833)^360 − 1) / 0.00833] × 1.00833
- (1.00833)^360 ≈ 19.84, so FV ≈ 10,000 × 2,260.49 × 1.00833 ≈ ₹2,28,03,000
- Total contributed = 10,000 × 360 = ₹36,00,000 | Wealth gained = ₹1,92,03,000
- Lumpsum at 60 (60%, tax-free) = ₹1,36,81,800
- Annuity corpus (40%) = ₹91,21,200 | Monthly pension at 6% annuity rate = ₹45,606
Result: Corpus at 60: ~₹2.28 Cr | Tax-free lumpsum: ~₹1.37 Cr | Lifelong monthly pension: ~₹45,606
Frequently asked questions
How does the NPS calculator project my retirement corpus?
NPS Tier 1 contributions accumulate like a SIP — using the future value of annuity formula FV = P × [((1+r)^n − 1) / r] × (1+r) where P is your monthly contribution, r is the monthly return rate (your blended equity-corporate-government return) and n is the number of months till retirement. At age 60 the calculator splits the corpus into a 60% tax-free lumpsum and 40% mandatory annuity to compute monthly pension.
What returns can I expect from NPS?
Long-term blended NPS returns vary by allocation: a 75% equity / 25% debt portfolio (auto-LC75 or active choice) has historically returned 9-11% CAGR; a 50-50 allocation 8-9%; a conservative 100% government-bond portfolio 7-7.5%. For planning use 9% if you are below 50 and equity-heavy, 8% if balanced, 7% if mostly debt. Returns are not guaranteed — NPS funds are market-linked.
How much tax can I save with NPS?
Under the old regime: up to ₹1,50,000 of your contributions count towards Section 80C, and an exclusive ₹50,000 deduction is available under Section 80CCD(1B) — over and above 80C. Employer contributions up to 10% of basic salary (14% for central government employees) are deductible separately under Section 80CCD(2) and this benefit is also available in the new regime, making employer NPS one of the only tax breaks left after Budget 2024 reforms.
Why is 40% of my corpus locked into an annuity?
NPS rules require at least 40% of the maturity corpus to be used to buy an annuity from an empanelled life insurance company, providing a regular monthly pension for life. The remaining 60% can be withdrawn as a tax-free lumpsum at age 60. You can buy more than 40% as annuity if you want a larger pension. Annuity rates currently sit at 5.5-7% depending on the option (return-of-purchase-price reduces the rate).
Can I withdraw NPS before age 60?
Partial withdrawals up to 25% of your own contributions are allowed after 3 years of subscription, for specific reasons — children's higher education or marriage, first home purchase, critical illness, or skill development. Premature exit is allowed before 60 but you must use 80% of the corpus to buy an annuity (only 20% as lumpsum). After 60, the standard 60-40 split applies.
Is NPS better than PPF or EPF for retirement?
NPS gives the highest expected return because of equity exposure (up to 75%), plus the exclusive ₹50,000 80CCD(1B) deduction PPF and EPF cannot match. The trade-off is the mandatory annuity at 60 and lower liquidity. A balanced strategy: max EPF (mandatory) + ₹1.5 lakh PPF (debt allocation, tax-free) + ₹50,000 NPS via 80CCD(1B) (equity allocation, extra deduction) gives diversification across guaranteed and market-linked returns.
How is the NPS lumpsum and annuity taxed?
The 60% lumpsum withdrawn at age 60 is fully tax-free (made fully tax-free in Budget 2019). The 40% used to buy an annuity is also tax-free at the point of purchase, but the monthly pension you receive thereafter is fully taxable as salary at your slab rate. Partial withdrawals before 60 (up to 25% of own contributions) are also tax-free. Employer's NPS contribution above 7.5 lakh per year (combined with PF and superannuation) is taxable from FY 2020-21 onwards.
Related calculators
NPS returns are market-linked and not guaranteed. Calculator uses constant return rate for simplicity; actual annual returns will fluctuate. Annuity rates change with insurer, age at purchase and option selected (with/without return of purchase price).