NPS Calculator
NPS corpus, lump sum and monthly pension.
Assumes a 7% annuity rate; actual pension depends on rates at retirement. NPS has 60/40 lump-sum/annuity rules with tax benefits under 80CCD.
How it works
Your monthly contributions compound at market-linked returns until age 60. At exit, up to 60% can be taken as a tax-free lump sum while at least 40% must buy an annuity that pays a monthly pension for life.
Example
₹10,000/month at 10% for 30 years builds a corpus of about ₹2.3 crore. A 40% annuity then pays roughly ₹53,000/month pension.
FAQs
NPS Tier I vs Tier II?
Tier I is the retirement account with tax benefits and withdrawal restrictions. Tier II is a flexible add-on with no tax benefits — withdraw anytime.
What tax benefits does NPS give?
Up to ₹1.5 lakh under 80C plus an extra ₹50,000 under 80CCD(1B) — ₹2 lakh total deduction. The 60% lump sum at exit is tax-free.
Is the pension amount fixed?
No — it depends on annuity rates when you retire. Higher rates mean higher pension. Our 7% assumption is illustrative.