Paisa Planner

NPS Calculator (National Pension System)

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings. It is the only investment in India that gives you an exclusive tax deduction of ₹50,000 under Section 80CCD(1B) over and above the ₹1.5 Lakh 80C limit.

NPS Investment Details
₹
30 Years
10%
Retirement Settings (Age 60)
40%

You will withdraw 60% as a tax-free lump sum.

6%

Estimated Monthly Pension

₹22,793

Starting at age 60

Tax-Free Lumpsum

₹68,37,976

60% of Corpus

Annuity Corpus

₹45,58,651

40% of Corpus

Corpus Breakdown
Total Invested₹18,00,000
Wealth Gained₹95,96,627
Total Maturity Amount₹1,13,96,627

Exclusive Tax Savings

Estimated lifetime tax saved via Section 80CCD(1B)

₹4,68,000

How NPS Wealth Accumulation Works

You invest a certain amount every month until you reach age 60. This money is invested in a mix of Equity (up to 75%), Corporate Bonds, and Government Securities based on your choice. Since your money remains locked in until age 60, the power of compounding works uninterrupted for decades.

Withdrawal Rules at Age 60

When you turn 60, you cannot withdraw the entire amount. • Maximum 60% can be withdrawn as a tax-free lump sum. • Minimum 40% MUST be used to purchase an Annuity (a regular monthly pension) from a life insurance company. Our calculator lets you adjust these percentages to see how it affects your final monthly pension.

Frequently Asked Questions

Is NPS tax-free?

The 60% lump sum withdrawal at age 60 is completely tax-free. However, the monthly pension (annuity) you receive from the remaining 40% is added to your income and taxed as per your income tax slab in retirement.

Can I withdraw from NPS before 60?

Premature withdrawals are highly restricted. You can withdraw up to 25% of your own contributions (not the employer's or the returns) for specific purposes like children's education, marriage, or treating critical illnesses, but only after completing 3 years in the scheme.

What returns can I expect from NPS?

NPS is market-linked. Historically, a balanced portfolio (50% Equity, 50% Debt) has delivered around 10% to 11% annualized returns. You can choose to increase equity allocation up to 75% for higher expected returns.