NPS Calculator
The National Pension System (NPS) is a government-sponsored voluntary retirement scheme regulated by PFRDA.
Input Calculation Parameters
₹
Years
%
%
Calculation Results
Total Invested Capital
0
Retirement Corpus at Age 60
0
Tax-Free 60% Lump Sum Withdrawal
0
Estimated Monthly Pension (40% Annuity)
0
How the Calculation Works
Accumulates contributions until age 60. At 60, up to 60% corpus can be withdrawn tax-free, while remaining 40% purchases mandatory annuity pension.
Worked Example
Here is a step-by-step example calculation for ₹5,000 Monthly NPS at Age 30 @ 10% p.a.:
| Parameter | Value |
|---|---|
| Invested | ₹18,00,000 |
| Total Corpus | ₹1,13,96,627 |
| Lumpsum 60 | ₹68,37,976 |
| Monthly Pension | ₹22,793 |
Scenario Analysis
Comparing different tenures, interest rates, or investment horizons:
| Scenario Label | Key Metric |
|---|---|
| Age 60 Retirement | Total Corpus: ₹1.14 Crore |
Common Mistakes to Avoid
- Forgetting to claim additional ₹50,000 tax deduction under Section 80CCD(1B) under Old Tax Regime.
Frequently Asked Questions (FAQs)
What is Tier 1 vs Tier 2 NPS account?
Tier 1 is the locked-in pension account with tax benefits. Tier 2 is a flexible voluntary savings account without lock-in.
Authoritative Sources & Regulatory References
Author: SmartPaisa Financial Research Team
Reviewer: Reviewed by Financial Engineering Team
Last Reviewed: 2026-08-17
Financial Disclaimer: This calculator provides estimates for educational purposes only based on standard mathematical formulas and current Indian regulatory guidelines. Actual returns, taxes, or EMI payments may vary depending on bank policies, market volatility, or individual tax brackets. Consult a SEBI-registered investment advisor or Chartered Accountant (CA) before making financial decisions.
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