The National Pension Scheme (NPS) calculator is a convenient online tool that helps individuals estimate the pension amount they can expect upon retirement.
Please follow the steps below to use this NPS calculator –
- Enter Your Monthly Investment: If you plan to invest ₹5,000 every month into your NPS account, type 5000 in the first field.
- Input your expected annual return rate (%): Think of this as the average return you expect per year from your NPS investments. If unsure, you can use a typical estimate like 10.
- Enter your current age (between 18 and 60): This helps calculate the number of years left until retirement at age 60. Just put in your age — like 30, if you’re 30 years old.
- Click the “Calculate” button: The calculator will instantly compute your total corpus at retirement and the mandatory annuity portion (40%), and show a visual breakdown of your investment vs returns.
About National Pension Scheme

The National Pension System (NPS) is a government-sponsored retirement savings scheme in India, designed to provide financial security and stable income to individuals post-retirement. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
Key Features of NPS:
- Voluntary: Open to all Indian citizens aged between 18 and 70 years.
- Flexible: Individuals can choose their own investment options and pension fund managers.
- Portable: The account remains active across jobs and locations within India.
- Tax Benefits:
- Contributions up to ₹1.5 lakh per annum qualify for tax deduction under Section 80C.
- An additional ₹50,000 can be claimed under Section 80CCD(1B).
- Low Cost: NPS is one of the lowest-cost investment options in India.
Types of NPS Accounts:
- Tier-I Account (Pension Account):
- Mandatory for NPS subscribers.
- Withdrawals are restricted; primarily meant for retirement savings.
- Partial withdrawal allowed under specific conditions.
- Tier-II Account (Investment Account):
- Optional and flexible.
- Allows unlimited withdrawals.
- No tax benefits under 80C.
How It Works:
- Subscribers contribute regularly to their NPS account.
- Funds are invested in various asset classes (Equity, Corporate Bonds, Government Securities).
- On retirement (at 60), up to 60% of the corpus can be withdrawn lump sum (tax-free), and the remaining 40% is used to purchase an annuity for regular pension.
Who Should Invest in NPS?
- Salaried individuals seeking long-term retirement planning.
- Self-employed professionals wanting structured retirement income.
- Anyone looking for a tax-efficient, regulated investment option.