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
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.