NPS Calculator
The National Pension System (NPS) is India's most tax-efficient retirement savings tool. With an additional ₹50,000 deduction under 80CCD(1B), NPS is the only instrument that offers a tax break beyond the ₹1.5 lakh Section 80C limit.
🏛️ Why NPS?
NPS has delivered equity fund returns of 12–14% CAGR since 2009. Combined with Section 80C + 80CCD(1B) tax benefits, it can save you up to ₹62,400 in taxes per year at the 30% slab.
Min ₹500/month
Min 40% required by PFRDA
- Total Invested
- ₹18,00,000
- Corpus at Retirement
- ₹1,13,96,627
- Total Returns
- ₹95,96,627
- Lump Sum (Tax-free)
- ₹68,37,976
- Annuity Corpus
- ₹45,58,651
- Est. Monthly Pension
- ₹22,793
Frequently Asked Questions
What is NPS?
The National Pension System (NPS) is a government-backed retirement savings scheme regulated by PFRDA. It invests in equities, government bonds, and corporate bonds based on your risk preference.
Who can invest in NPS?
Any Indian citizen aged 18–70 can open an NPS account. Government employees are mandatorily enrolled. Private sector employees and self-employed individuals can join voluntarily.
What is the minimum annuity percentage in NPS?
At retirement, at least 40% of the accumulated corpus must be used to buy an annuity (monthly pension). Up to 60% can be withdrawn as a tax-free lump sum.
What are the tax benefits of NPS?
NPS contributions qualify for tax deduction up to ₹1.5 lakh under Section 80C, plus an additional ₹50,000 under Section 80CCD(1B) — a total of up to ₹2 lakh deduction per year.
What is the difference between Tier I and Tier II NPS accounts?
Tier I is the mandatory retirement account with lock-in till age 60. Tier II is an optional account with no lock-in and no special tax benefits — it works like a regular investment account.