NPS Calculator
Calculate your NPS corpus at retirement, monthly pension, and tax benefits under Section 80CCD.
30 years
60 years
$5,000
10% p.a.
6% p.a.
40%
Total NPS Corpus
$11,396,627
Monthly Pension
$22,793
Lump Sum (Tax-Free)
$6,837,976
Annuity Corpus
$4,558,651
Total Contribution
$1,800,000
Total Returns
$9,596,627
$60,000
$50,000
Total Annual Tax Benefit
$110,000
About NPS Calculator — National Pension Scheme
Project NPS corpus, monthly pension, and tax savings under Sections 80CCD(1) and 80CCD(1B).
How NPS Tier-1 Works
NPS Tier-1 is a retirement-focused account with a lock-in until age 60. You contribute regularly, the funds are invested in a mix of equity, corporate bonds, and government securities, and at retirement, you receive 60% as a tax-free lump sum and must purchase an annuity with the remaining 40%.
The flexibility of choosing your own fund manager and asset allocation, combined with the dual tax benefit under Sections 80CCD(1) and 80CCD(1B), makes NPS one of India's most tax-efficient retirement vehicles.
NPS vs EPF vs PPF: Which is Best?
All three serve retirement planning but with different characteristics:
- NPS: Market-linked, flexible, best tax benefit (₹2L/year), mandatory 40% annuity at exit.
- EPF: Guaranteed returns (8.25%), employer co-contribution, full withdrawal tax-free after 5 years.
- PPF: Guaranteed (7.1%), fully tax-free at maturity, 15-year lock-in, no employer contribution.
The ideal portfolio uses all three for diversified, tax-efficient retirement wealth.
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What are the tax benefits of NPS?
NPS offers tax deductions under Section 80CCD(1) — up to ₹1.5 Lakh within the overall 80C limit — plus an exclusive additional deduction of ₹50,000 under Section 80CCD(1B), making total NPS deduction up to ₹2 Lakh per year.
Is NPS lump sum withdrawal tax-free?
Yes. Under Section 10(12A), 60% of the NPS corpus withdrawn as a lump sum at retirement (age 60) is completely tax-free. The remaining 40% must be used to purchase an annuity and the pension income is taxable.
What is the minimum annuity purchase in NPS?
At retirement, a minimum of 40% of the NPS corpus must be used to purchase an annuity plan from a PFRDA-approved insurance company. The remaining 60% can be withdrawn as a tax-free lump sum.