NPS Calculator — National Pension System Calculator

How to Use NPS Calculator

1Enter the required values in the input fields above.
2Click the Calculate button or results update instantly as you type.
3View your results in the output panel below the inputs.
4Adjust any values to recalculate instantly.

Formula & Method

Worked Example

Frequently Asked Questions

What is NPS and how does it work?

National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by PFRDA. You contribute monthly until age 60. At maturity, you must use at least 40% to buy an annuity (pension) from an insurance company; the remaining 60% is received tax-free as lumpsum.

What is the difference between Tier 1 and Tier 2 NPS?

Tier 1 is the mandatory pension account with lock-in until retirement (with limited partial withdrawals). Tier 2 is a voluntary savings account with no lock-in — you can withdraw anytime. Tax benefits (80CCD) apply only to Tier 1. Tier 2 has no tax advantage.

What are the NPS tax benefits?

Section 80CCD(1): contributions up to ₹1.5L (within 80C limit). Section 80CCD(1B): additional ₹50,000 deduction exclusively for NPS — this is over and above the ₹1.5L 80C limit. Section 80CCD(2): employer's NPS contribution up to 10% of salary is fully deductible. Maximum tax benefit can reach ₹2L per year.

What are NPS fund allocation options?

NPS offers 3 asset classes: Equity (E, up to 75% for Active Choice), Corporate Bonds (C), and Government Securities (G). Auto Choice (Lifecycle Fund) automatically reduces equity allocation as you age. Active Choice lets you decide allocation. Higher equity historically generates better long-term returns.

Can I withdraw from NPS before 60?

Partial withdrawal (up to 25% of own contributions) is allowed after 3 years for specific purposes: higher education, marriage, home purchase, medical treatment. Premature exit before 60 requires 80% annuitisation (only 20% lumpsum). After 60, only 40% minimum annuity is required.

Which is better: NPS, PPF, or EPF?

EPF: best for salaried employees — employer matches contribution, guaranteed returns. PPF: best for self-employed and tax-free guaranteed returns over 15 years. NPS: best for additional retirement corpus with the ₹50,000 extra deduction under 80CCD(1B) — the annuity component provides lifelong pension income.