MoneyMath

NPS Calculator

Calculate the returns on your National Pension System (NPS) investments with our easy-to-use calculator.

Adjust Parameters

₹500₹5,000₹1,00,000
18 years30 years65 years
40 years60 years70 years
5%10%15%

Shows inflation-adjusted returns

Investment Details

How to Calculate NPS Returns

The National Pension System (NPS) returns are calculated based on compound interest on your monthly contributions over the investment period.

A = P × ({[1 + i]^n - 1}/i) × (1 + i)

Where:

  • A = Accumulated corpus at retirement
  • P = Monthly contribution
  • i = Monthly rate of return (Annual rate ÷ 12 ÷ 100)
  • n = Total number of months of contribution

Example Calculation

For a monthly NPS contribution of ₹5,000 at 10% expected return for 30 years:

  • P = 5,000
  • i = 10 ÷ 12 ÷ 100 = 0.00833
  • n = 30 × 12 = 360 months
  • Total investment = ₹18,00,000
  • Corpus at retirement = ₹1,13,02,229
  • Wealth gained = ₹95,02,229

NPS Withdrawal Rules

  • Minimum 40% of corpus must be used to purchase annuity
  • Up to 60% can be withdrawn as lump sum
  • Partial withdrawals allowed for specific needs
  • Premature exit possible with penalties
  • Tax benefits under Section 80CCD(1) and 80CCD(1B)

About National Pension System

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings during the working life of a subscriber. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Benefits of NPS

  • Tax benefits under multiple sections
  • Low-cost investment option
  • Flexible investment choices
  • Portable account across jobs and locations
  • Regulated by PFRDA
  • Option to invest in equity, corporate bonds, and government securities

How to Use This Calculator

  • Enter your monthly contribution amount
  • Set your current age
  • Choose your retirement age
  • Select your expected annual return rate
  • View the projected corpus and pension estimates