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NPS Calculator for India

Created by Madhumathi Raman
Reviewed by Wojciech Sas, PhD and Steven Wooding
Last updated: May 17, 2024

The NPS calculator for India is based on the National Pension System (formerly known as the National Pension Scheme), which is a measure to provide a regular and stable source of income for Indian citizens after retirement.

This NPS calculator for India allows you to determine how much corpus you will have upon retirement and also calculate the NPS annuity. You will also be able to adjust the NPS interest rate to estimate your retirement savings and the associated tax benefit from NPS.

So if you want to spend your retirement years lazing around in a hammock on a tropical island 🍹, buy a boat 🛥️ to spend your time fishing, or buy a house 🏡, or even if you want to check off space travel 🚀 from your bucket list, the NPS investment calculator will help you determine if you will have sufficient funds 💸 to make your retirement dream come true! Regarding retirement, you might be interested in looking up the Employees' Provident Fund Calculator that can help you plan your working years appropriately.

What can I estimate using the NPS calculator for India?

The NPS return calculator helps you estimate your total retirement savings. You will also learn how to calculate your NPS corpus, which will enable you to plan for your retirement.

NPS is a systematic investment plan (cf. sip calculator) in which you can choose to deposit a certain amount every month. Based on your monthly investment and the prevailing NPS interest rate, you will be able to estimate the total amount you're entitled to at the time of your retirement using this NPS investment calculator.

As per the NPS guidelines, you will be able to withdraw up to 60% of your total corpus at the time of retirement, which will be subject to taxation. Furthermore, the remaining 40% must be invested in annuities, which you'll get back as a monthly pension amount over a specific duration chosen by you.

Boat or Home?
Interested in buying a boat or a home? Our boat loan calculator and home affordability calculator might come in handy.

How do I use the NPS annuity calculator?

In order to use this NPS annuity calculator, you'll need to enter the following details:

  1. Your investment per month towards the NPS savings plan;
  2. Your age (to determine the duration of the investment until retirement); and
  3. The expected rate of return from NPS.

When you enter these values, the NPS investment calculator will display the following:

  • Your total invested amount;
  • The interest earned; and
  • The total maturity amount from the pension scheme.

In the NPS calculation for India's NPS scheme, the NPS calculation formula to calculate the maturity amount is based on compounded interest.

In the Annuity & Lump Sum section of the National Pension Scheme calculator, you would also be able to determine the lump sum amount you will get after retirement and the amount that you need to invest in an annuity. This information will help in the calculation of pension after retirement.

Example calculation for the NPS pension calculator

Let's say you're 25 years of age and invest ₹5000 per month in the NPS scheme.

In the NPS calculation for India, a reasonable estimate of the NPS interest rate is 10% (generally, it varies between 9% and 12%).

From the NPS return calculator, you will be able to see that:

  • You invested a total of ₹21,00,000 over 35 years (retirement age is considered to be 60 years);
  • You earned an interest of ₹1,68,83,190;
  • Your total maturity amount from the National Pension Scheme is calculated to be ₹1,89,83,190;
  • The maximum lumpsum amount you can get after retirement is ₹1,13,89,914 (assuming the least annuity investment percentage of 40%); and
  • The remaining amount of ₹75,93,276 must be invested in an annuity.

How is the NPS corpus calculated?

The final corpus of the NPS investment scheme is calculated using the formula:

A=P ((1 + R12)12N  1)RA = \frac{P\ \left( \left(1\ +\ \frac {R}{12}\right)^{12N}\ -\ 1\right)}{R}


  • AA – Final maturity value;
  • PPMonthly investment;
  • RRRate of interest per annum; and
  • NNNumber of years of investment.

What is the NPS tax benefit?

The amount you invest in NPS is eligible for tax exemption for up to ₹1.5 Lakhs per year under Section 80CCD(1) of the Income-tax Act, 1961. An individual who has deposited any amount in their NPS account during the financial year is allowed to claim a deduction from their gross income limited to 10% of basic salary for salaried individuals and 20% of total gross income for self-employed individuals.

But to encourage investment in NPS, Section 80CCD(1B) of the Income-tax Act allows an additional deduction of ₹50,000 over and above the ₹1.5 Lakh limit.


Does the maturity amount vary between Tier-1 and Tier-2 cities?

Not at all! Most banks offer investment in NPS, and the maturity amount would stay the same, irrespective of your location. It primarily depends on the NPS interest rate, which generally varies between 9% and 12%.

What happens if I stop investing in NPS?

If you decide to discontinue your investment, your NPS account will be frozen. You can reactivate the account by depositing the minimum contribution required along with the penalty for inactivity.

Who is eligible for the NPS scheme?

To be eligible to invest in the NPS scheme, all the following criteria must be met:

  • Anyone who has Indian citizenship;
  • Is between 18-60 years old;
  • Is employed by a corporate entity; and
  • Is complying with the KYC (know your customer) norms.

What is the NPS interest rate?

The NPS interest rate is generally around 10% but can vary between 9% and 12%, depending on the chosen scheme. Schemes with a slightly higher risk provide better returns, while conservative plans provide slightly lower but stable returns.

Madhumathi Raman
Investment per month (P)
Your age
Retirement age
Expected rate of return (R)
/ year
Investment duration (N)
Total investment
Interest earned
Maturity amount (A)
Annuity & Lump Sum
Preferred annuity percentage
Annuity amount
Lump sum
Expected annuity rate
/ year
Expected pension per month
₹ / month
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