NPS Calculator (India)

Current age: 30.6 years

Min 40% (by exit rules)

Solver bumps your monthly contribution to reach the target pension (with current assumptions).

Expected Annual Returns (editable)

%
%
%
%

These are assumptions for projection (not guarantees). Charges apply as a flat annual %.

Projected Corpus
₹2,17,42,783
Total Contribution
₹76,43,371
Total Gain
₹1,40,99,412
XIRR (pre-tax)
409500.00%

Corpus Growth Over Time

Exit Split

Lump Sum
₹1,30,45,670
Tax-free up to 60% (by rule)
Annuity Purchase
₹86,97,113
Monthly pension below (taxable as income)
Projected Monthly Pension
₹50,733

Amortization Schedule (Yearly)

YearOpeningContributionGainClosingE%C%G%A%Blended Return
31₹0₹1,20,000₹4,953₹1,24,95375%10%15%0%9.15%
32₹1,24,953₹1,26,000₹16,634₹2,67,58775%10%15%0%9.15%
33₹2,67,587₹1,32,300₹29,945₹4,29,83275%10%15%0%9.15%
34₹4,29,832₹1,38,915₹45,063₹6,13,81075%10%15%0%9.15%
35₹6,13,810₹1,45,861₹62,184₹8,21,85575%10%15%0%9.15%
36₹8,21,855₹1,53,154₹80,930₹10,55,93971%11%18%0%9.04%
37₹10,55,939₹1,60,811₹1,01,271₹13,18,02267%12%21%0%8.93%
38₹13,18,022₹1,68,852₹1,23,588₹16,10,46163%13%24%0%8.82%
39₹16,10,461₹1,77,295₹1,47,993₹19,35,75059%14%27%0%8.71%
40₹19,35,750₹1,86,159₹1,74,604₹22,96,51355%15%30%0%8.60%
41₹22,96,513₹1,95,467₹2,03,535₹26,95,51551%16%33%0%8.49%
42₹26,95,515₹2,05,241₹2,34,903₹31,35,65947%17%36%0%8.38%
43₹31,35,659₹2,15,503₹2,68,823₹36,19,98543%18%39%0%8.27%
44₹36,19,985₹2,26,278₹3,05,409₹41,51,67339%19%42%0%8.16%
45₹41,51,673₹2,37,592₹3,44,773₹47,34,03835%20%45%0%8.05%
46₹47,34,038₹2,49,471₹3,87,595₹53,71,10532%20%48%0%7.96%
47₹53,71,105₹2,61,945₹4,34,055₹60,67,10529%20%51%0%7.87%
48₹60,67,105₹2,75,042₹4,83,987₹68,26,13426%20%54%0%7.78%
49₹68,26,134₹2,88,794₹5,37,549₹76,52,47823%20%57%0%7.69%
50₹76,52,478₹3,03,234₹5,94,899₹85,50,61120%20%60%0%7.60%
51₹85,50,611₹3,18,396₹6,58,236₹95,27,24319%18%63%0%7.55%
52₹95,27,243₹3,34,316₹7,27,881₹1,05,89,44018%16%66%0%7.50%
53₹1,05,89,440₹3,51,031₹8,02,962₹1,17,43,43317%14%69%0%7.45%
54₹1,17,43,433₹3,68,583₹8,83,813₹1,29,95,82816%12%72%0%7.40%
55₹1,29,95,828₹3,87,012₹9,70,784₹1,43,53,62515%10%75%0%7.35%
56₹1,43,53,625₹4,06,363₹10,68,505₹1,58,28,49315%10%75%0%7.35%
57₹1,58,28,493₹4,26,681₹11,77,584₹1,74,32,75815%10%75%0%7.35%
58₹1,74,32,758₹4,48,015₹12,96,207₹1,91,76,97915%10%75%0%7.35%
59₹1,91,76,979₹4,70,415₹14,25,152₹2,10,72,54715%10%75%0%7.35%
59₹2,10,72,547₹1,64,645₹5,05,591₹2,17,42,78315%10%75%0%7.35%

National Pension System (NPS)

The National Pension System (NPS) is a government sponsored retirement savings program in India that allows individuals to invest regularly during their working years and receive a lump sum plus a pension after retirement. The program was initially launched for government employees and in 2009 it opened for all sections including NRIs.

It offers market-linked returns, tax benefits, and flexibility in choosing investment options, making it a popular long-term wealth and retirement planning tool.

NPS eligibility for individuals

  • Salaried or self-employed individuals are eligible.
  • Age range: 18 to 70 years.
  • Includes NRIs and OCIs; excludes PIO cardholders and HUF.

NPS Formula

A = P(1 + r/n)n×t

  • P = Principal sum
  • r = Rate of interest per annum
  • n = Number of compounding periods per year
  • t = Total tenure (years)

Example of NPS

Scenario: Ravi is 30 years old and starts investing in NPS.

  • Monthly Contribution: ₹5,000
  • Investment Period: 30 years (till age 60)
  • Expected Annual Return: 10%
  • Annuity Purchase (at retirement): 40% (mandatory minimum)

Total Amount Invested: ₹18,00,000 (₹5,000 × 12 × 30)

Corpus at Retirement: ~₹1.13 crore (based on 10% returns)

Lump Sum Withdrawal (60%): ~₹68 lakh (tax-free)

Annuity Investment (40%): ~₹45 lakh

Monthly Pension (approx.): ₹30,000 – ₹35,000 (depends on annuity rate)

Figures are illustrative. Actual outcomes depend on market performance and annuity rates.

Benefits of NPS

  • Retirement Planning: Build a retirement corpus with regular contributions to ensure post-retirement income and financial security.
  • Tax Benefits: Deductions up to ₹1.5 lakh under Section 80C and an additional ₹50,000 under Section 80CCD(1B). Employer contributions up to 10% of salary are tax-free under Section 80CCD(2).
  • Better Return Potential: Invests in equity, government securities, and corporate bonds for long-term growth.
  • Portability: The same NPS account continues even if you change jobs or cities.

What is an NPS Calculator and How Does It Help?

An NPS calculator helps estimate your retirement corpus. Enter:

  • Your monthly contribution (e.g., ₹5,000)
  • Your investment period (e.g., 25 years)
  • Expected annual return (e.g., 10%)
  • Percentage of annuity purchase (e.g., 40%)

It shows you:

  • Total amount you will invest
  • Projected corpus growth
  • Lump sum withdrawable at retirement
  • Estimated monthly pension from annuity

This is an estimate, not a guarantee. Use it to plan your retirement better.

How to Use Finanjo’s NPS Calculator – Step-by-Step

  1. Enter your monthly contribution (e.g., ₹5,000).
  2. Select your investment duration (e.g., 25 years).
  3. Enter the expected annual return (e.g., 9%).
  4. Choose the % of corpus for annuity (minimum 40%).
  5. View projected retirement corpus, lump sum amount, and estimated pension.

Frequently Asked Questions

Is NPS suitable for everyone?
Yes, it’s designed for long-term retirement planning and suits both salaried and self-employed individuals.
Can I withdraw before retirement?
Partial withdrawals (up to 25% of your own contribution) are allowed for needs like education, marriage, or medical emergencies.
Are NPS returns guaranteed?
No. Returns depend on the market performance of equity, debt, and bonds. Past returns (~9–12%) are not indicative of future results.
How much pension will I get from NPS?
It depends on your total corpus and the annuity plan chosen. The calculator estimates a possible range.
Illustration only. Returns are assumptions; annuity payout is estimated as (annuity rate ÷ 12 × purchase price).