NPS Calculator · WealthJot.ai

🎖️ NPS Calculator

National Pension Scheme — corpus at retirement, monthly pension & lump sum

NPS: total corpus at 60 grows to ₹2.28 Cr, based on the entered inputs.

₹2,27,93,253

₹2,27,93,253 total corpus at 60 from ₹36.00 L

Current Age30

Monthly Contribution₹10,000

Expected Annual Return10%

Annuity Purchase %40%

Annuity Interest Rate6%

Monthly Pension

₹45,587

Lump Sum (tax-free)

₹1,36,75,952

Amount Used for Annuity

₹91,17,301

Total Invested

₹36,00,000

Additional 80CCD(1B) Deduction

₹50,000

Save this calculation — sign up free to keep it and track it against your real plan.

Formula

Corpus at Retirement = Monthly Contribution compounded monthly at the expected return rate, accumulated over the years remaining to retirement (same growth formula as a SIP)

Worked example

Input	Value
Current Age	30 years
Monthly Contribution	₹10,000
Expected Annual Return	10%
Annuity Purchase %	40%
Annuity Interest Rate	6%
Total Corpus at 60	₹2,27,93,253
Monthly Pension	₹45,587
Lump Sum (tax-free)	₹1,36,75,952
Amount Used for Annuity	₹91,17,301
Total Invested	₹36,00,000
Additional 80CCD(1B) Deduction	₹50,000

How the NPS calculator projects your pension

NPS is a locked-till-60 retirement account with the lowest fund-management fees in India (~0.03-0.09%). The calculator compounds your monthly contribution to age 60, then splits the corpus per the exit rules: up to 60% withdrawable as a tax-free lump sum, and at least 40% compulsorily converted to an annuity — whose rate decides your monthly pension.

The number that surprises everyone is the pension, not the corpus. A ₹2 crore corpus sounds like wealth — but 40% (₹80 lakh) buying an annuity at ~6% yields only ~₹40,000/month, fully taxable at your slab, and typically not inflation-indexed: the same ₹40,000 buys half as much 12 years into retirement. Judge NPS by the whole journey — ultra-low fees and extra tax deductions on the way in, but a forced, slab-taxed, flat annuity on 40% at the exit.

ExampleAge 30, ₹10,000/month till 60 at 10%: corpus ≈ ₹2.26 crore. Exit split: ₹1.36 crore tax-free lump sum + ₹90 lakh annuity at 6% → ~₹45,000/month taxable pension. The employer route sweetens it further: employer NPS contributions (up to 14% of basic) are deductible in both tax regimes — effectively free retirement money on top of CTC negotiations.

Common mistakeComparing NPS returns against mutual funds on the corpus alone. The annuity mandate is the real differentiator: 40% of your money exits compounding at 60 and becomes ~6% taxable income for life. If flexibility at 60 matters to you, the standard blend is employer NPS + the ₹50,000 80CCD(1B) top-up (old regime) for the tax breaks, with the bulk of retirement savings in mutual funds you control.

✓ You learnedNPS = cheapest compounding in India + unmatched tax breaks (₹50K extra deduction old-regime; employer contributions deductible in both regimes), paid for with a lock till 60 and a 40% compulsory, slab-taxed annuity. Model the monthly pension — not the headline corpus — before deciding how much of your retirement rides on it.

FAQs

Is NPS tax-free at 60?

The lump sum (up to 60% of corpus) is fully tax-free. The remaining 40%+ must buy an annuity, and every pension payout from it is taxed at your slab like salary. So NPS is EEE on the way in and on the lump sum, but the annuity leg is taxable income for life — factor that into any comparison with equity funds’ 12.5% LTCG.

NPS active choice or auto choice — and how much equity?

Active choice lets you set your own equity/debt split (equity capped at 75%, tapering after 50); auto choice glides it down by age automatically. Young subscribers generally benefit from maxing the equity allocation — the cap itself is one reason aggressive savers pair NPS with pure equity funds rather than relying on it alone.