NPS Calculator

What is the NPS Calculator?

The National Pension Scheme (NPS) calculator assists in estimating the retirement pension by calculating the monthly contribution. It simplifies retirement planning, helping users determine suitable contributions. The NPS calculator enhances the important aspect of financial foresight for retirement.

By using the National Pension Scheme calculator, you can get an idea about how much to contribute monthly to obtain a suitable corpus post-retirement.

As the importance of planning for retirement becomes increasingly evident, the popularity of the National Pension Scheme calculator is growing. The calculator makes your retirement planning easier by helping you determine the amount you need to contribute. Indian citizens between 18 and 60 are eligible to buy the NPS scheme.

Pension Funds

Most Popular

Returns 3 Years 5 Years 10 Years

Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

Tata AIA Whole Life Mid Cap Equity Fund

AUM:13,041 Cr

13,041 Cr

NAV

155.97

-0.88%

Returns

24.07%

Returns

29.02%

Highest Return

Returns

20.47%

Get Details

Max Life High Growth Fund

AUM:7,665 Cr

7,665 Cr

NAV

119.16

-0.77%

Returns

29.03%

Returns

29.68%

Highest Return

Returns

20.1%

Get Details

Birla Sun Life Multiplier

AUM:4,680 Cr

4,680 Cr

NAV

100.49

-0.58%

Returns

24.01%

Returns

25.73%

Highest Return

Returns

18.69%

Get Details

HDFC Standard Opportunities Fund

AUM:40,535 Cr

40,535 Cr

NAV

78.31

-0.64%

Returns

20.41%

Returns

24.51%

Highest Return

Returns

17.1%

Get Details

Bajaj Allianz Accelerator Mid-Cap Fund II

AUM:6,630 Cr

6,630 Cr

NAV

87.89

-0.46%

Returns

22.53%

Returns

24.48%

Highest Return

Returns

16.97%

Get Details

Kotak Mahindra OM Classic Opportunities Fund

AUM:14,538 Cr

14,538 Cr

NAV

71.45

-0.34%

Returns

17.69%

Returns

20.91%

Highest Return

Returns

15.13%

Get Details

ICICI Prudential Opportunity Fund

AUM:3,486 Cr

3,486 Cr

NAV

60.28

-0.27%

Returns

18.35%

Returns

20.7%

Highest Return

Returns

13.94%

Get Details

How to Calculate NPS Online?

Start a stress-free retirement journey with Policybazaar's NPS Calculator online. In just six easy steps, input your age, monthly investment, and expected returns. Customize your pension allocation preferences. The calculator reveals your future monthly pension, lump sum, and pension wealth. 

Follow these steps:

Step 1: Input your current age in years

Step 2: Specify the amount you are willing to invest in the National Pension Scheme every month

Step 3: Provide the expected rate of return on your investments

Step 4: Decide the percentage of the accumulated corpus that you want to allocate for receiving a pension in the future

Step 5: Enter the expected rate of return for the pension phase

Step 6: The NPS return calculator will show you the estimated monthly pension, lump sum amount, and pension wealth

NPS Pension Calculator Formula

The NPS scheme allows subscribers to invest in various pension plans, including Birla Pension Fund, HDFC Pension Fund, LIC Pension Fund, and SBI Pension Fund. The best NPS calculator uses the following pension calculation formula: 

Who can use the National Pension Scheme Calculator?

As per the NPS rule, all Indian citizens between the ages of 18 and 60 are eligible to invest in the pension scheme. Also, the applicant must fulfil the Know Your Customer (KYC) guidelines to invest in NPS. An increasing number of Indians are subscribing to the NPS. In the financial year 2023 alone, the NPS added 170 lakh subscribers.

How to Calculate Pension Amount Using an NPS Return Calculator?

Let us understand the NPS pension calculation with the help of an example:

Mrs. Joshi, a 25-year-old, invests Rs. 10,000 monthly in the National Pension Scheme with a projected 9% interest. Anticipating retirement at 60, she allocates 40% of her corpus for pension, with an expected rate of return of 6%.

Total Investment= ₹42 Lakhs

Returns Earned= ₹2.54 Cr 

Maturity Amount= ₹2.96 Cr

Monthly Pension= ₹59,277

NPS Interest Rate

The National Pension System doesn't offer a fixed interest rate like other savings schemes. This is because NPS investments are market-linked. This means your returns will depend on how the underlying assets perform in the market. Historically, NPS returns have ranged from 9% to 12% per annum. As compared to other investment options available in the market, NPS offers a profitable return and provides an opportunity to accumulate wealth in the long term.

NPS Calculation for Income Tax

Here's how NPS contributions affect your income tax calculations:

Tax Deductions for Your Contributions:

• Section 80CCD(1): You can claim a tax deduction for contributions to your NPS Tier I account, up to 10% of your salary (Basic + Dearness Allowance). This deduction falls under the overall Section 80CCE limit of Rs. 1.5 lakh.

• Section 80CCD(1B): This section offers an additional tax benefit for Tier I NPS accounts. You can deduct an extra Rs. 50,000 on top of the Rs. 1.5 lakh limit under Section 80CCE.

Important Points to Remember for NPS Calculation as per the Old Tax Regime:

• The total tax deduction for NPS contributions cannot exceed your gross income.

• Employer contributions to your NPS account (mandatory for government employees, voluntary for most private companies) are also tax-deductible for the employer under Section 80CCD(2). However, this deduction doesn't affect your personal tax calculations.

Benefits at Withdrawal:

• Upon maturity (after 60 years old), you can withdraw up to 60% of the corpus tax-free.

• The remaining 40% must be used to purchase an annuity plan, which provides you with a regular income stream. The income from the annuity is taxable as per your applicable tax slab.

How to Calculate NPS for Tier 1 and Tier 2 Accounts?

Here are the details about Tier 1 and Tier 2 accounts to consider while using the NPS pension calculator:

NPS Tier 1 Account

• Mandatory contributions: For Tier 1 account, a minimum of Rs. 1,000 per year needs to be contributed. There is no maximum limit, but it is recommended that contributions be made regularly to maximize the corpus.

• Investment Choices: Tier 1 offers various investment options (Asset Classes) like Equity (E), Corporate Debt (C), Government Bonds (G) and Alternative Investment Funds (A). You can choose the asset class based on your risk profile.

NPS Tier 2 Account

• Voluntary contributions: Tier 2 account is voluntary and allows contributions over and above the Tier 1 mandatory contributions. There is no minimum or maximum limit for Tier 2 contributions.

• Investment Choices: Similar to Tier 1, Tier 2 also offers various investment options.

NPS Calculator for Government Employees 

Here’s how NPS works for government employees:

• Increased Government Contribution: A major benefit for government employees is the increased employer contribution. The government contributes 14% of your salary towards your Tier-I NPS account, compared to the 10% offered to private sector employees. 

• Investment Choice: The Central Government grants its employees the freedom to choose their investment patterns within Tier-I. This allows you to customise your investment strategy based on your risk appetite and retirement goals.

• Tax Benefits: NPS offers significant tax benefits for both contributions and withdrawals.

  • Lump-Sum Withdrawal: For government employees, the tax exemption on lump-sum withdrawals at retirement has been increased to 40%. This means a larger portion of your accumulated corpus is tax-free.

  • Tier-II Account: Tier-II NPS accounts function like regular savings accounts with the added benefit of tax deductions. Government employees can claim deductions up to Rs. 1,50,000 on their Tier-II contributions under Section 80C of the Income Tax Act, 1961, provided the mandatory 3-year lock-in period is fulfilled.

To get an estimated amount that you can expect to accumulate upon retirement, you can use an NPS pension calculator for government employees.

NPS Annuity Calculator

An NPS annuity calculator is an online tool that helps you estimate the amount of money you can expect to receive at retirement through the National Pension System (NPS) in India. Based on the corpus used to purchase the annuity and the chosen annuity rate, the calculator estimates the monthly pension amount you'll receive after retirement.

Points to Remember:

• The NPS annuity calculator provides an indicative figure, not a guaranteed amount. Actual returns and annuity rates may vary.

• It's a valuable tool for retirement planning. It helps you assess if your current contributions are on track to meet your desired retirement income.

Post Office NPS Calculator

The Post Office NPS Calculator is a tool that helps you estimate the amount of money you can expect to receive at retirement through the National Pension Scheme (NPS) offered by India Post.

Here's how it works:

• You input some basic details like your current age, monthly NPS contribution, and desired investment return rate.

• The calculator considers factors like the number of years until your retirement and the annuity option you choose upon maturity.

• It then provides an estimate of two things:

  • The lump sum amount you'll receive at retirement.

  • The monthly pension you can expect after retirement.

How Much Can You Expect to Receive Upon Retirement?

Several NPS calculators can help you estimate your potential pension corpus. Here are some of the popular options:

• NPS Calculators by Pension Fund Managers:

  • SBI NPS Calculator: Estimate your NPS returns with SBI Pension Fund.

  • HDFC NPS Calculator: Plan your retirement with HDFC Pension Fund's calculator.

  • ICICI NPS Calculator: Get insights into your potential NPS benefits with ICICI Prudential Pension Fund's calculator. 

• Other NPS and Retirement Calculators:

  • NPS Annuity Calculator: This tool helps estimate the pension you'll receive after investing in an NPS annuity plan upon retirement. 

  • NPS Tier 1 Calculator & NPS Tier 2 Calculator: If you'd like to estimate returns specifically for Tier 1 or Tier 2 NPS accounts, search for separate calculators.