What return can I expect from NPS?

NPS is market-linked, invested across equity and debt. Historically it has delivered roughly 8-10% per year over the long term, but returns are not guaranteed and vary with your chosen allocation.

How much of my NPS corpus can I withdraw at 60?

You can withdraw up to 60% of the corpus as a tax-free lump sum. At least 40% must be used to buy an annuity, which pays you a monthly pension for life.

NPS Calculator | SavesToGrow

Q: What are the NPS tax benefits?

NPS deposits qualify under Section 80CCD(1) within the 1.5 lakh 80C limit, plus an extra 50,000 deduction under 80CCD(1B). Employer contributions under 80CCD(2) are deductible in both the old and new regimes.

Q: Is NPS better than PPF?

They serve different goals. NPS is market-linked with a pension component and an extra 50,000 tax deduction; PPF gives a fixed, fully tax-free return with a 15-year lock-in. Many people use both.

The National Pension System (NPS) is a low-cost, government-regulated way to build a retirement corpus — with an extra tax break you won’t find elsewhere. Use this free NPS calculator to estimate your corpus at 60, your tax-free lump sum, and the monthly pension you could draw for life.

NPS Calculator

NPS Pension Calculator

Estimate your National Pension System corpus at age 60, your tax-free lump sum, and the monthly pension you could receive for life.

Your current age

yrs

Monthly contribution

₹

Expected return

% p.a.

% used for pension at 60 (min 40%)

Expected annuity rate

% p.a.

Total corpus at age 60

₹0

Lump sum (tax-free)

₹0

Monthly pension

₹0

How this works: assumes monthly contributions compounded monthly until age 60. At 60, at least 40% of the corpus must buy an annuity (pension); the rest can be withdrawn tax-free. Monthly pension = annuity corpus × annuity rate ÷ 12. NPS also gives an extra ₹50,000 deduction under 80CCD(1B). Returns and annuity rates are assumptions, not guaranteed. Educational estimate, not advice. Compare with PPF and SIP.

How NPS works

You contribute regularly until age 60, and your money is invested across equity and debt by professional fund managers. At 60, you can withdraw up to 60% as a tax-free lump sum, and at least 40% must buy an annuity that pays you a monthly pension for the rest of your life.

The NPS tax advantage

NPS offers a deduction that stacks on top of your usual limit: an extra ₹50,000 under Section 80CCD(1B), over and above the ₹1.5 lakh Section 80C limit. Employer contributions under 80CCD(2) are also deductible — and, unusually, work under both the old and new tax regimes. Check which regime suits you with our tax regime calculator.

NPS vs PPF vs EPF

NPS is market-linked with a pension component; PPF gives fixed, fully tax-free returns; EPF runs automatically from your salary. They aren’t rivals — a strong retirement plan often uses all three. See where each fits among the best investment options for salaried people.

Frequently asked questions

What are the NPS tax benefits?

Deposits qualify under 80CCD(1) within the ₹1.5 lakh 80C limit, plus an extra ₹50,000 under 80CCD(1B). Employer contributions under 80CCD(2) are deductible in both tax regimes.

How much of my NPS can I withdraw at 60?

Up to 60% as a tax-free lump sum; at least 40% must buy an annuity that pays a lifelong monthly pension.

Is NPS better than PPF?

They serve different goals — NPS is market-linked with a pension and an extra ₹50,000 deduction; PPF is fixed and fully tax-free. Many investors use both.

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