NPS Calculator 2026
Plan your retirement with the National Pension System. Calculate your corpus, monthly pension, and enjoy extra ₹50,000 tax benefits beyond Section 80C.
Extra ₹50,000 Tax Benefit under Section 80CCD(1B)
1.5 Cr+
NPS Subscribers
12.5%
Avg. Equity Returns (10Y)
₹50K
Extra Tax Deduction
60%
Tax-Free at Maturity
Enter Your Details
Minimum: ₹500/month for Tier 1
Asset Allocation (Auto Choice)
Remaining is withdrawn as lump sum (tax-free)
Your NPS Projection
Investment Duration
30 years
Total Investment
₹36,00,000
Expected Returns
₹2,24,89,432
Total Corpus at 60
₹2,60,89,432
At Retirement
Lump Sum Withdrawal (Tax-Free)
₹1,56,53,659
Annuity Purchase Amount
₹1,04,35,773
Expected Monthly Pension
₹54,354
Annual Tax Saved (at 30% slab)
₹15,600
What is NPS (National Pension System)?
National Pension System (NPS) is a government-sponsored pension scheme launched in 2004. Initially for government employees, it was opened to all Indian citizens in 2009. NPS is regulated by PFRDA (Pension Fund Regulatory and Development Authority).
Did You Know?
NPS has one of the lowest fund management charges in the world — just 0.01% (₹10 per ₹1 lakh invested annually). In comparison, mutual funds charge 1-2.5% annually!
NPS Tax Benefits 2026
| Section | Benefit | Limit | Who Can Claim |
|---|---|---|---|
| 80CCD(1) | Employee Contribution | Up to 10% of salary (part of ₹1.5L 80C limit) | All subscribers |
| 80CCD(1B) | Additional Deduction | ₹50,000 (over and above 80C) | All subscribers |
| 80CCD(2) | Employer Contribution | Up to 10% of salary (14% for Govt) | Salaried employees |
Maximum Tax Saving: If you're in the 30% tax bracket and contribute ₹50,000 under 80CCD(1B), you save ₹15,600 in taxes annually (₹50,000 × 30% + 4% cess). Over 30 years, that's ₹4.68 lakh saved just in taxes!
NPS Fund Options (Asset Classes)
| Asset Class | Invests In | Risk | 10-Year Returns |
|---|---|---|---|
| E - Equity | Stocks, Index Funds | High | 12-14% |
| C - Corporate Bonds | Corporate Debt | Medium | 9-10% |
| G - Government Securities | Govt Bonds | Low | 8-9% |
| A - Alternative Assets | REITs, InvITs | Medium-High | 10-12% |
NPS vs PPF vs EPF Comparison
| Feature | NPS | PPF | EPF |
|---|---|---|---|
| Returns (Expected) | 9-12% (Market-linked) | 7.1% (Guaranteed) | 8.25% (Guaranteed) |
| Tax at Maturity | 60% tax-free + pension taxable | 100% tax-free (EEE) | 100% tax-free (EEE) |
| Lock-in | Till age 60 | 15 years | Till retirement/5 years |
| Extra Tax Benefit | ₹50,000 (80CCD1B) | No | No |
| Investment Choice | You choose allocation | Fixed by govt | Limited (EPFO decides) |
Power of Compounding:
₹10,000/month in NPS from age 25 to 60 (35 years) at 10% returns = ₹3.8 Crore corpus. The same from age 35 = only ₹1.2 Crore. Starting 10 years earlier triples your retirement fund!
NPS Withdrawal Rules
- At Age 60: Withdraw up to 60% as tax-free lump sum. Minimum 40% must be used to purchase annuity (pension).
- Before 60 (Exit): If corpus ≤ ₹2.5 lakh, withdraw 100%. Otherwise, 80% must go to annuity.
- Partial Withdrawal: After 3 years, withdraw 25% of your contributions (not employer's) for specific needs.
- Death: 100% paid to nominee (no annuity requirement).
Frequently Asked Questions
Is NPS better than mutual funds?
NPS has significantly lower costs (0.01% vs 1-2.5%) and extra tax benefits (₹50K under 80CCD1B). However, NPS has lock-in till 60 and mandatory annuity purchase. If you need flexibility, mutual funds are better. For pure retirement planning with tax efficiency, NPS wins.
Which NPS fund manager is best?
There are 10 pension fund managers. Based on 10-year track record, SBI, UTI, LIC, and HDFC have consistently performed well. You can compare returns on the NPS Trust website. You're allowed to switch fund managers once per year.
Can NRIs invest in NPS?
Yes, NRIs (except OCIs) can open NPS accounts. Contributions must be from NRE/NRO accounts. Tax benefits depend on residential status during the financial year. If you become a foreign citizen, the account is closed with full withdrawal.
What happens if I stop NPS contributions?
If you don't contribute minimum ₹1,000/year in Tier 1, account is frozen after 3 years. To unfreeze, pay ₹100 penalty per year of inactivity. Your existing corpus continues to earn returns even if frozen. You can exit with penalties before age 60.