NPS Calculator India (2026)

Calculate your National Pension System (NPS) maturity corpus, tax-free lump sum withdrawal, and estimated monthly pension. Plan your retirement with market-linked growth.

NPS Inputs

Total NPS Corpus at retirement

₹0

Lump Sum Withdrawal (60%)

₹0

Monthly Pension Available

₹0

Total Invested Wealth Growth
Invested: ₹0 Growth: ₹0

Analysis: Your remaining 40% corpus (Annuity) used for pension calculation: ₹0.

Years to Retirement

30

Plan Status

Accumulation Phase

What is NPS (National Pension System)?

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by the PFRDA (Pension Fund Regulatory and Development Authority). It was initially launched for government employees in 2004 and opened to all Indian citizens in 2009.

Unlike traditional fixed-return instruments, NPS is a market-linked product that allows you to invest in a mix of Equity, Corporate Bonds, and Government Securities. This flexibility makes it a powerful tool for building a substantial retirement corpus that beats Inflation over the long run.

NPS Benefits: Old vs. New Tax Regime

01 Old Tax Regime

  • Section 80CCD(1): Deduction up to ₹1.5 Lakhs (inclusive of 80C).
  • Section 80CCD(1B): Exclusive additional deduction of ₹50,000 over and above the ₹1.5 Lakh limit.
  • Section 80CCD(2): Employer contribution up to 10% of salary (14% for Govt employees) is deductible.

02 New Tax Regime

  • Corporate Benefit: Deduction under Section 80CCD(2) remains fully available.
  • Limits: Deduction for employer contribution up to 14% of salary is allowed for both private and government employees.
  • Note: The extra ₹50,000 self-contribution deduction (1B) is not available in the New Regime.

Tip: Use our Retirement Calculator to see how these tax savings impact your final corpus.

How NPS Helps Build Retirement Wealth

NPS follows a systematic accumulation approach. During your working years, you contribute regularly via monthly SIPs. Upon reaching age 60, you can withdraw up to 60% of the total corpus as a tax-free lump sum. The remaining 40% must be used to purchase an Annuity, which provides a regular monthly pension.

By starting early, you benefit from the Power of Compounding. Even a small monthly contribution of ₹5,000 started at age 25 can result in a massive corpus by the time you reach 60.

NPS Tax Benefits (Section 80CCD) Breakdown

Section 80CCD(1)

Tax deduction on your own contributions up to 10% of salary (Basic + DA) within the overall ₹1.5 Lakh limit of Section 80C.

Section 80CCD(1B)

An exclusive additional deduction of up to ₹50,000 for NPS contributions, over and above the ₹1.5 Lakh limit of 80C.

Section 80CCD(2)

Employer’s contribution up to 14% of salary (New Regime / Govt) or 10% (Old Regime private) is deductible for the employee.

Frequently Asked Questions

What is NPS and how does it work?
NPS is a retirement tool where you invest monthly into Tier-1 accounts. The money is managed by professional fund managers across Equity, Debt, and Govt Bonds. It matures at age 60.
What return can I expect from NPS?
Returns are market-linked. Portfolios with 50-75% equity exposure have historically delivered 10-12% annual returns over long periods.
How much pension will NPS give?
It depends on your annuity amount (min 40% of corpus) and the annuity rate at retirement (usually 5-7%). Monthly pension is calculated as (Annuity Amount * Rate) / 12.
Is NPS better than EPF?
EPF offers guaranteed returns (8.25%), while NPS offers higher potential through equity exposure. NPS also provides higher tax benefits under section 80CCD(1B).
Can I withdraw NPS early?
Partial withdrawals up to 25% of your own contribution are allowed for specific reasons (marriage, medical, house purchase) after 3 years of joining.