What is a NPS Calculator?
The National Pension System Calculator projects your retirement corpus and estimated monthly pension based on your monthly contributions, current age, and expected returns. It helps you understand the lump sum withdrawable at 60 and the monthly pension from the annuity portion.
Benefits of Using Rupee Logic NPS Calculator
Corpus Projection
Estimate your total NPS corpus at age 60 based on your monthly contributions and expected returns.
Triple Tax Benefit
NPS offers deductions under 80C (₹1.5L), 80CCD(1B) exclusive ₹50K, and employer contribution 80CCD(2).
Pension Estimate
Know exactly what monthly pension the annuity portion will generate after retirement at 60.
Lumpsum Planning
Understand how much tax-free lump sum (up to 60% of corpus) you get at retirement.
Frequently Asked Questions — NPS Calculator
NPS offers three layers of tax deduction: Section 80C up to ₹1.5 lakh (shared with PPF, ELSS etc.); Section 80CCD(1B) an additional ₹50,000 exclusively for NPS over and above the 80C limit; Section 80CCD(2) employer contribution up to 10% of Basic+DA for private sector (14% for government) with no upper limit. Total potential deduction: ₹2 lakh+ from income per year.
NPS returns depend on asset allocation. Historical returns (last 10 years): Equity (E) Tier-1: 12-14% CAGR; Corporate Bonds (C): 8-9%; Government Securities (G): 7-8%. For projections, 10-12% is a reasonable assumption for moderately aggressive allocation with 50-75% equity. Auto-choice lifecycle fund reduces equity allocation progressively as you age.
At age 60: You can withdraw up to 60% of the NPS corpus as lump sum — this is completely tax-free. The remaining minimum 40% must purchase an annuity generating monthly pension, which is taxable as regular income. If total corpus is less than ₹5 lakh, 100% can be withdrawn as lump sum without mandatory annuity.
Premature exit before 60 (after 3 years subscription) is allowed but stricter: maximum 20% can be withdrawn as lump sum versus 60% at age 60; minimum 80% must purchase annuity versus 40% at 60. Partial withdrawal up to 25% of own contributions is allowed after 3 years for specific reasons: children education, marriage, house purchase, critical illness, or skill development.
NPS offers two tiers: Tier 1 (mandatory, locked till 60, tax benefits available) and Tier 2 (voluntary, withdraw anytime, no tax benefits). Asset classes: E (equity, max 75% in active choice), C (corporate bonds), G (government securities), A (alternative assets, max 5%). Choose Active Choice (you decide allocation) or Auto Choice (lifecycle fund adjusting automatically as you age).