Can I withdraw my NPS money before turning 60?

Premature withdrawal rules are very strict. You can only withdraw up to 25% of your own contributions (not employer's or returns) for specific reasons like children's education, marriage, buying a house, or critical illness. And you must have been in the system for at least 3 years.

Is the 60% lump sum at maturity completely tax-free?

Yes! The 60% lump sum withdrawal you take at age 60 is completely exempt from income tax. This makes NPS an excellent EEE (Exempt-Exempt-Exempt) styled investment.

Is the monthly annuity pension tax-free?

No. The monthly pension you receive from the annuity is treated as regular income and will be taxed according to your income tax slab in retirement.

What are the asset classes in NPS?

NPS allows investment across four asset classes: Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Investment Funds (A).

Can I open more than one NPS account?

No, NPS operates on a unique PRAN (Permanent Retirement Account Number). You can only have one active PRAN in your lifetime.

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All Calculators Retirement & FIRENPS Calculator

Regional Notice: This calculator uses India's financial regulations, but you are viewing it in USD. for the most accurate local experience.

NPS Calculator

Retirement & FIRE

Monthly Investment

Current Age

Expected Return (p.a)

Results

Calculation Results

Your computed breakdown

Corpus at Age 60

$137.3K

Total Invested

$21.7K

Max Tax-Free Commutation

$82.4K

What is an NPS Calculator?

The National Pension System (NPS) Calculator helps Indian citizens estimate their retirement corpus and monthly pension payouts. NPS is a voluntary, long-term retirement savings scheme designed to enable systematic savings during your working life.

How Does the NPS Work?

You contribute a monthly amount to your NPS Tier-I account until age 60. The money is invested in a mix of Equity, Corporate Bonds, and Government Securities based on your choice. Upon retirement at 60, you can withdraw a maximum of 60% as a tax-free lump sum. The remaining 40% MUST be used to purchase an Annuity, which provides your monthly pension.

The Wealth Generation Formula

Retirement Corpus = Sum of all Monthly SIPs compounded at the Expected ROI

Monthly Pension = (Corpus × Annuity %) × Annuity Rate

Key Benefits of NPS

Exclusive Tax Benefits: Provides an additional deduction of ₹50,000 under Section 80CCD(1B), over and above the ₹1.5 Lakh 80C limit.
Low Cost: NPS has one of the lowest fund management charges in the world (under 0.01%), meaning more of your money stays invested.
Asset Allocation: You can choose "Active Choice" to manually decide your equity exposure (up to 75%), or "Auto Choice" to let it automatically de-risk as you age.

Frequently Asked Questions

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