NPS Calculator

National Pension Scheme Calculator is an online tool, which allows the individual to calculate the estimated lump-sum and pension amount that they may receive at the time of retirement under the NPS scheme.

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NPS Calculator

Your Age

18 Years 59 Years
Enter Your Age

Investment Per Month

₹500 ₹10L
Enter Investment Per Month

Expected Return on Investment

5% 20%
Expected Return on Investment
Total Investment
Interest Earned
Maturity Amount

Percentage of Corpus to be allocated for Purchase of Annuity

40% 100%
Enter Corpus Percentage

Expected returns from the Annuity

3% 10%
Enter Annuity Return
Lumpsum Amount
At age of 60 Yrs
Yearly Pension
For life time

What is NPS Calculator?  – An Overview

The National Pension Scheme Calculator helps an investor to get an estimate of the wealth gained, maturity amount of the whole investment i.e., how much they will receive as a pension when they retire at age 60 and monthly pension. This gives you an idea about how much to invest monthly to receive a suitable corpus on retirement. The amount of corpus collected by the time of retirement depends on your investment amount and returns generated. 

Simply put, the more the money invested, the more the accumulated sum, and the larger would be the final benefit of the accumulated pension wealth.  With an option to select between debt and equity, the NPS calculator lets you check the expected retirement corpus based on your risk appetite. Thus, NPS calculator is a convenient tool to make an informed NPS investment. 

Who can use the NPS Calculator?

All individuals can use the NPS calculator who are eligible to invest in the National Pension Scheme. 

Eligibility Criteria: As per the NPS rule, all Indian citizens between the age group of 18-60 years are eligible to invest in the pension scheme. Also, the applicant will require to fulfill the Know Your Customer (KYC) guidelines in order to invest in NPS.

Features of NPS Calculator

Here are some of the salient features of the National Pension Scheme Calculator.

  • This calculator can be used online in a very easy and simple way.

  • The calculator helps to calculate the exact amount that you will receive a pension.

  • The calculator also shows the amount invested by you during the accumulation phase, interest earned, and the total amount of funds generated at maturity.

  • All individuals who are eligible to invest in the National Pension Scheme can use the National Pension calculator.

How to Use NPS Calculator?

Following is the step by step guide to use the NPS pension calculator:

You are required to enter the below details systematically. 

Step 1: Date of Birth (DOB)- Based on your DOB, the NPS Pension calculator will compute the number of years you will need to contribute to the scheme in order to accumulate the desired amount after retirement.

Step 2: Investment Amount- Enter the amount that you want to contribute per month.

Step 3: Expected Return on Investment (ROI)- Select the desired return on investment 

Step 4: Percentage of Annuity to be Purchased- This is the percentage of the amount i.e. the pension fund that you would like to reinvest to buy an annuity on maturity. In the NPS scheme, the annuity refers to the amount the investor will receive per month after retirement from the Annuity Service Provider (ASP)

Note: It is important to note that the percentage of accumulated funds reinvested to purchase an annuity cannot be less than 40%. However, in case of premature exit of scheme i.e. before 60 years of age, the minimum percentage of funds to be reinvested to purchase annuity should be 80%.

Step 5: Expected Annuity Rate- Enter the expected annuity rate i.e. the amount of annuity that you want to receive from your pension.

Step 6:  Once you enter all the details, the National Pension Scheme calculator will simultaneously calculate the estimated lump-sum amount and pension amount you will receive at the time of maturity.

Benefits of NPS Calculator

NPS pension calculator is a specifically designed online tool that calculates the estimated pension amount that you will receive at the time of retirement. Following are the benefits of the online NPS calculator.

  • It saves time as you don’t need to do any manual calculation and receive the right result every time.

  • You can have a clear knowledge of how much investment you need to make in order to achieve the desired pension amount. Moreover, it also helps you to do financial planning more efficiently.

  • With the help of a calculator, you can know the estimated amount you will receive as a pension after retirement.

How does NPS Calculator Work?

The NPS Pension Scheme Calculator also shows the summary of the pension account at the time of retirement i.e. the total amount contributed by you during the accumulation phase and the amount generated on maturity. Moreover, it also computes the expected monthly pension that you will receive on the basis of the expected returns on the annuity.

NPS Online calculator helps compute the amount of total earned interest over the years and you are required to enter the following details while calculating NPS returns: 

  • Current age 

  • Retirement age 

  • The amount you are investing monthly 

  • Estimated annuity interest rate, currently at 8%

Here is an example that helps you understand how the NPS calculator calculates your monthly pension 

Ms. Malini is a 36-year-old is a government employee and is expected to retire at 60. She is investing Rs. 10,000 per month in the NPS scheme. The expected Annuity rate of interest for her NPS fund is 8%.

The status of Malini’s Pension account at the time of retirement as generated by the NPS calculator will be as follows: 

Number of Invested Years 24
Amount Invested (sans interest) Rs.2,880,000
Interest Earned Rs.5,773,258.43
Total Amount Invested in NPS Rs.2,880,000 + Rs.5,773,258.43 = Rs.8,653,258.43
Annual Pension Rs.415,356.40
Monthly Pension Rs.34,613.03
Withdrawable Amount on Maturity Rs.3,461,303.37

Formula for Calculating NPS Amounts 

Similar to all pension schemes, NPS calculator also uses compounding interest to compute returns. Let’s take a look at the national pension scheme calculator formula.

A=P (1+r/n)^nt

In this equation, the amount is denoted as A. The other variables are as follows.

P Principal Sum
R Interest rate per annum
N/n Number of times interest compounds
T/t Total tenure

Let’s understand the pension calculation with the help of an example: 

If you are of 34 years and you make a monthly contribution of Rs.3000 towards the NPS scheme. You will need to continue making the contribution towards the account for 26 years more. Assuming the rate of interest expected (ROI) every year is 10%. The following are the details offered by the National Pension Scheme Calculator.

Total Principal Invested = Rs 9. 36 Lakh 

Sum expected at the time of maturity = 44.35 Lakh

NPS (National Pension Scheme) Calculator – FAQs

  • Q1. How much can I invest in NPS Scheme?

    Ans: For tier -I account, the subscribers can make a yearly contribution of Rs.6000 and Rs.500 as a one-time contribution. For the tier-II account, the subscribers can make a yearly contribution of Rs.2000 and Rs.250 as a one-time contribution.
  • Q2.  What is the pension amount in NPS?

    Ans: The amount of sum received by the individual as an annuity based on the contribution made towards the scheme is known as the pension amount in NPS.
  • Q3.  Is it good to invest in NPS?

    Ans: As NPS is a government-sponsored pension scheme, NPS is a safe and lucrative investment option for individuals who want to secure the financial future after retirement by accumulating wealth in the long term.
  • Q4.  Can I do SIP in NPS?

    Ans: NSP and SIP are two different types of investment options, so one cannot do SIP in NSP
  • Q5. Can I have two NPS accounts?

    Ans: No, one cannot open more than one NSP account or hold multiple NSP accounts.
  • Q6. What is the current interest rate of NPS?

    Ans: The current interest rate of the National Pension Scheme is 9%-12%
  • Q7. Is NPS risk-free?

    Ans: As a government-sponsored pension scheme, it is quite popular among investors who are looking for a risk-free retirement option.
  • Q8. What are the tax benefits under NPS?

    Ans: The contribution made towards the NPS scheme up to the maximum limit of Rs.1.5 lakh is eligible for tax exemption U/S80C of Income Tax Act. Moreover, in the national pension scheme, the contribution made by the employee and employer both are applicable for tax exemption.
  • Q9. Is there a minimum contribution required for the NPS Scheme?

    Ans: Even though there is no minimum contribution requirement per annum. It is advised to contribute a minimum of Rs.1000 per annum to ensure a reasonable annuity after retirement.
  • Q10. What is National Pension Scheme (NPS)? 

    Ans: The National Pension System (NPS) is a government-supported pension scheme. It is a measure to estimate the degree of financial stability for Indian citizens after their retirement. Anyone over 60 years of age is eligible to use the accumulated amount in the pension corpus. Investment in Pension scheme offers tax savings benefit under section 80CCD and is a beneficial retirement solution. 
  • Q11. What is NPS for State government employees? 

    Ans: As per the Union Budget 2022-23, state government employees will be able to claim a tax benefit of 14% on the NPS contribution made by their employer. The tax benefit is limited to 10% for private-sector employees. The tax deduction limit in NPS has increased from 10% to 14% for state government employees.
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NPS Calculator
Total Investment -
Interest earned
Maturity amount

Percentage of Corpus to be allocated for Purchase of Annuity

40% 100%
Enter Corpus Percentage

Expected returns from the Annuity

3% 10%
Enter Annuity Return
Lumpsum Amount
At age of 60 Yrs
Yearly Pension
For life time

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