NPS Calculator

NPS Calculator Inputs
Corpus Growth Visualization

What is NPS (National Pension System)?

The National Pension System (NPS) is a voluntary retirement savings plan launched by the Indian government. It encourages regular contributions during your working years to build a substantial retirement corpus, ensuring financial stability in old age. NPS combines market-linked growth with tax benefits, making it a smart choice for long-term planning.

How Does the NPS Calculator Work?

The NPS calculator predicts your retirement corpus and monthly pension based on your age, retirement age, monthly contributions, expected returns, and annuity details. It shows how your savings grow over time.

Accumulated Corpus ≈ Monthly Contribution * [((1 + r)^n - 1) / r] * (1 + r)
Monthly Pension ≈ (Annuity Purchase % * Accumulated Corpus) * (Annuity Rate / 12)
Where:
r = Monthly Expected Return (Annual Expected Return / 12)
n = Total Number of Contributions (Years to Retirement * 12)

Key Benefits of NPS

Market-Linked Growth

Offers returns that can beat inflation over time.

Cost-Effective & Flexible

Low fees with customizable contributions and asset choices.

Tax Savings

Deductions under Section 80C (₹1.5 lakh) and 80CCD (₹50,000).

Portable Plan

Stays with you across jobs and locations.

Regulated Safety

Overseen by PFRDA for transparency and security.

NPS FAQs

Any Indian citizen (resident or non-resident) aged 18-70 is eligible.

Up to ₹1.5 lakh under Section 80C and an extra ₹50,000 under Section 80CCD(1B).

NPS is market-linked with variable returns, unlike traditional funds with fixed benefits.

Withdraw up to 60% tax-free as a lump sum; use at least 40% for an annuity pension.

Partial withdrawals are allowed for emergencies like medical needs or education, per PFRDA rules.

© 2025 Finance Tools Hub. All rights reserved.

```