NPS Calculator 2026 — National Pension System Maturity & Monthly Pension

Calculate your NPS retirement corpus, lump-sum withdrawal, monthly pension, and ₹50,000 extra tax saving under Section 80CCD(1B). Includes annuity income estimate.

📌 Extra ₹50K Deduction — 80CCD(1B) ✅ 60% Lump Sum Tax-Free at 60 📈 Equity Tier: 12–14% CAGR 📋 Lowest Cost: 0.09% p.a. 🏠 PFRDA Regulated
NPS Calculator

Your NPS Retirement Corpus

Adjust sliders to see your NPS corpus at retirement, monthly pension, lump-sum payout, and total tax saved under 80CCD — live.

₹5,000
₹500₹2 Lakh
11%
6% (G Tier)15% (Aggressive E)
25 Years
1 Year42 Years
6%
4% (Low)9% (High)
✅ Tax Saved via 80CCD(1B): ₹15,600/yr at 30% slab
₹6.27 Cr total corpus
Invested Returns
Total Contribution₹15.00 L
Investment Returns+₹1.12 Cr
60% Lump Sum (Tax-Free)₹37.6 L
40% → Annuity Corpus₹25.1 L
Est. Monthly Pension₹12,540/mo
Total 80CCD Tax Saved₹3.90 L
Total NPS Corpus at 60₹62.7 L
🚀 Open NPS & Plan Retirement on WhatsApp
VR
Vikash Royal ARN-356458
B.E. | MBA Finance | NISM Certified | 7+ Years in Finance

📈 NPS Asset Allocation — How Returns Vary by Fund Choice

NPS lets you choose your own asset mix or use Auto Choice. Each tier has a different risk-return profile. Historical CAGR as of FY 2025-26 (10-year average across major NPS fund managers).

Aggressive (75% E)
75% Equity
15% Corp
10% Gsec
~13–14%
Moderate (50% E)
50% Equity
30% Corp
20% Gsec
~10–12%
Conservative (25% E)
25% E
45% Corporate Bonds
30% G-Sec
~8–9%
G-Sec Only (0% E)
100% Government Securities
~7–8%
Auto (LC-50 Age-Based)
50% E (reduces with age)
30% C
20% G
~10–11%
Equity (E) Corporate Bonds (C) Govt Securities (G)

For aggressive equity allocation (75% E), the equity cap is 75% for private sector NPS subscribers. Government employees: equity capped at 50%. Auto Choice (LC-50 Moderate) is recommended for most investors — it automatically reduces equity exposure as you approach retirement age, balancing growth and capital protection.

📅 NPS Corpus at Retirement — Monthly Contribution × Years

NPS maturity values at 11% CAGR (blended moderate allocation). Includes 60% lump-sum and estimated monthly pension at 6% annuity rate. Pre-tax.

Monthly Contribution Annual NPS 10 Years 20 Years 25 Years 30 Years Pension/mo (25 yrs)
₹2,000₹24,000₹41.5 L₹1.76 Cr₹3.35 Cr₹6.29 Cr₹6,700/mo
₹5,000₹60,000₹1.04 Cr₹4.40 Cr₹8.38 Cr₹15.7 Cr₹16,760/mo
₹10,000₹1.20 L₹2.07 Cr₹8.80 Cr₹16.8 Cr₹31.5 Cr₹33,520/mo
₹15,000₹1.80 L₹3.11 Cr₹13.2 Cr₹25.1 Cr₹47.2 Cr₹50,280/mo
₹25,000₹3.00 L₹5.19 Cr₹22.0 Cr₹41.9 Cr₹78.7 Cr₹83,800/mo
₹50,000₹6.00 L₹10.4 Cr₹44.0 Cr₹83.8 Cr₹1.57 Cr₹1.68 L/mo

At 11% p.a. CAGR (blended moderate allocation — 50% equity, 30% corporate bonds, 20% G-sec). Monthly compounding. 60% lump sum is tax-free at maturity. Pension estimate = 40% corpus × 6% annuity rate ÷ 12. Actual annuity rates vary by provider and annuity type. Use the calculator above for your personalised figures.

🆕 NPS Tax Saving — Section 80CCD(1B) Extra ₹50,000 Deduction

NPS gives an exclusive extra ₹50,000 deduction under 80CCD(1B) — over and above the ₹1.5 lakh 80C limit. This is a guaranteed return before investment growth even begins.

Annual NPS Contribution 5% Slab — Tax Saved 20% Slab — Tax Saved 30% Slab — Tax Saved 80CCD(1B) Extra (30%) Total Annual Tax Saving
₹50,000 (min for full 1B)₹2,600₹10,400₹15,600₹15,600₹15,600
₹1,00,000₹5,200₹20,800₹31,200₹15,600₹31,200
₹1,50,000 (80C limit)₹7,800₹31,200₹46,800₹15,600₹46,800
₹2,00,000 (80C + 1B full)₹10,400₹41,600₹62,400₹15,600₹62,400

80CCD(1B) allows ₹50,000 additional deduction exclusively for NPS — over and above the ₹1.5L Section 80C limit. This is available only under the Old Tax Regime. At 30% slab, investing ₹50,000/year in NPS saves ₹15,600 in tax immediately — equivalent to a guaranteed 31.2% return on that ₹50,000 in Year 1 before any investment gains. Surcharge and cess may increase effective savings further for higher incomes.

⚖ NPS vs EPF vs SIP — Complete Retirement Comparison 2026

Each instrument plays a distinct role in building a complete retirement portfolio. Here's how NPS fits in.

Parameter NPS (Tier 1) EPF / VPF Equity MF SIP
Expected Return 10–14% (equity tier, market-linked) 8.25% guaranteed 12–15% CAGR (historical)
Risk Low–Moderate (60–75% equity max) Zero — EPFO backed Market risk (equity)
Tax Deduction 80C ₹1.5L + 80CCD(1B) extra ₹50K = ₹2L total 80C up to ₹1.5L (mandatory) 80C up to ₹1.5L (ELSS only)
Tax on Withdrawal 60% lump sum tax-free; 40% annuity — taxable pension EEE — 100% tax-free after 5 years LTCG 12.5% on gains above ₹1.25L
Lock-In Till age 60 (partial withdrawal allowed after 3 yrs) Till retirement (partial withdrawal allowed) 3 Years only (ELSS); open-ended for others
Annuity Requirement 40% must buy annuity (taxable pension) No annuity requirement — full lump sum No annuity requirement
Fund Management Cost 0.09% p.a. (lowest globally) Zero (EPFO managed) 0.5–1.5% p.a. (expense ratio)
Employer Match Yes — 10% employer NPS (Govt: 14%) Yes — 3.67% EPF + 8.33% EPS No employer match
Best For Extra ₹50K tax deduction + moderate equity growth Guaranteed risk-free retirement base Maximum long-term wealth creation
📌 Pocket Wealth Verdict: Use all three: EPF/VPF for the guaranteed risk-free base, NPS for the exclusive ₹50,000 tax deduction (80CCD1B) and equity growth exposure, and Equity SIPs for maximum long-term wealth creation. The ideal retirement stack is never just one instrument. Speak to Vikash Royal (ARN: ARN-356458) to build your complete retirement architecture.

💡 4 Smart NPS Strategies to Maximise Retirement Wealth

Simple actions every NPS subscriber should take to get maximum benefit from the National Pension System.

🆕
Claim the Exclusive ₹50K 80CCD(1B)
If you're in the 30% slab, investing ₹50,000 in NPS saves ₹15,600 in tax immediately — a guaranteed 31.2% return before investment gains. Over 25 years, ₹15,600 reinvested annually at 12% SIP CAGR builds ₹2.10 crore extra. This is the single best tax optimisation move for Old Regime salaried employees with NPS. Many investors are already contributing to NPS but forgetting to claim 80CCD(1B) separately.
📈
Choose Aggressive Equity (75% E) When Young
If you are below 40, choose Active Choice with 75% equity allocation. The equity tier has delivered 13–14% CAGR over 10 years. The difference between 75% equity and 25% equity over 30 years on ₹5,000/month is enormous: ₹83.8L corpus at 10% CAGR vs ₹1.57 crore at 14% CAGR — nearly double. Gradually shift to conservative (reduce equity by 10% every 5 years after age 45) as you approach retirement.
🏠
NPS + EPF + SIP: The Complete Retirement Stack
No single instrument is sufficient for retirement. The optimal combination: EPF/VPF for the guaranteed 8.25% base (risk-free pillar), NPS for the extra ₹50K tax deduction and equity growth (tax-optimised pillar), Equity SIPs for 12–15% CAGR long-term wealth creation (growth pillar). The 40% annuity requirement in NPS makes equity SIPs essential — your SIP corpus provides full flexibility that NPS lacks.
🚫
Old Regime Only — New Regime Gets No NPS Benefit
Like 80C, NPS 80CCD(1B) deduction is available only under the Old Tax Regime. Under the New Regime, you get no deduction on NPS contributions. Exception: Employer NPS contribution (80CCD(2)) is deductible under both regimes — ensure your employer contributes to NPS for this benefit. If you've switched to the New Regime and have no employer NPS, consider redirecting NPS investments to ELSS SIPs which benefit from LTCG tax treatment regardless of regime.

❓ NPS Calculator — Frequently Asked Questions

Most searched NPS questions in India for FY 2026-27 — answered clearly.

NPS offers the most generous tax benefits of any retirement instrument:

80CCD(1): Up to 10% of basic salary (salaried) or 20% of gross income (self-employed) — within the ₹1.5L 80C limit.
80CCD(1B): Exclusive additional ₹50,000 deduction for NPS — over and above the ₹1.5L 80C limit.
80CCD(2): Employer's NPS contribution — up to 10% of salary deductible under both Old and New Tax Regime.

At 30% slab, the extra ₹50K under 80CCD(1B) saves ₹15,600 guaranteed annually — before any investment returns. Over 20 years, this tax saving itself (reinvested) builds ₹1.26 crore at 12% SIP CAGR.
NPS returns depend on asset allocation chosen:

• Equity (E) tier: 12–14% CAGR (10-year historical, market-linked)
• Corporate Bonds (C) tier: 8–9% CAGR
• Government Securities (G) tier: 7–8% CAGR
• Balanced (50E/30C/20G): ~10–12% CAGR blended

Top NPS fund managers by 10-year equity returns: SBI Pension Fund, UTI Retirement, HDFC Pension Management — all in the 13–14% CAGR range for equity tier. Choose the fund manager with the best 10-year track record in your chosen allocation.
NPS pension calculation:

Step 1: Calculate total corpus at 60 using the NPS calculator above.
Step 2: 60% of corpus = tax-free lump sum you receive directly.
Step 3: 40% of corpus = annuity corpus used to buy monthly pension.
Monthly Pension = Annuity Corpus × Annuity Rate ÷ 12

Example: ₹1 crore corpus → ₹60L lump sum (tax-free) + ₹40L annuity at 6% = ₹20,000/month pension (taxable as income).

Annuity rates vary: 5–7% depending on type (life only, joint life, return of purchase price) and provider (LIC, SBI Life, HDFC Life, ICICI Pru Life).
EPF advantages: 8.25% guaranteed, EEE (100% tax-free), mandatory employer match, zero market risk.

NPS advantages: Higher potential returns (10–14% equity tier), exclusive ₹50K 80CCD(1B) deduction, employer NPS deductible under both tax regimes, lowest fund management cost (0.09%).

Best answer — use both: EPF/VPF for the guaranteed risk-free retirement base. NPS for the extra tax deduction and equity growth. Equity SIPs for maximum wealth creation. The 40% annuity requirement is NPS's main disadvantage — which is why liquid equity SIPs are an essential complement.
Partial withdrawal is allowed after 3 years, up to 25% of own contributions for specific purposes:
• Higher education / marriage of children
• Purchase or construction of first residential house
• Treatment of specified critical illnesses
Maximum 3 partial withdrawals in lifetime.

Full exit before 60: 80% must be used to buy annuity; only 20% received as lump sum — a significant penalty. Exception: If corpus ≤ ₹2.5 lakh, full withdrawal allowed without annuity requirement.

This illiquidity is why NPS should be supplemented with liquid equity SIPs for financial flexibility before retirement.
Tier 1 (Primary pension account):
• Mandatory to open first
• Tax deductible — 80CCD(1) + 80CCD(1B)
• Locked till age 60 (limited partial withdrawals)
• Minimum ₹1,000/year to keep active

Tier 2 (Voluntary savings account):
• Optional — requires Tier 1 to be active
• No lock-in — fully liquid like a mutual fund
• No tax deduction (except Central Govt employees — 3-year lock-in for deduction)
• Taxed at STCG/LTCG on withdrawal

Focus all tax-saving contributions on Tier 1. Tier 2 is only useful if you want to invest with NPS fund managers without lock-in and don't mind no tax benefit.
Open NPS online in 3 steps:

1. Visit eNPS portal (enps.nsdl.com) or your bank's net banking (SBI, HDFC, ICICI, Axis all support NPS online).
2. Complete eKYC using Aadhaar OTP or PAN + bank account verification.
3. Make initial contribution (minimum ₹500 for Tier 1) and choose fund manager + asset allocation.

You receive a PRAN (Permanent Retirement Account Number) — a lifelong account number that stays with you across employers and cities. Annual minimum: ₹1,000 to keep account active. NPS has the lowest fund management charge of any pension product globally: just 0.09% p.a.

🚀 Build Your Complete Retirement Stack — EPF + NPS + SIP

NPS is one pillar of a complete retirement plan — not the whole building. Vikash Royal will calculate exactly how much EPF, NPS, and equity SIP you need to retire comfortably at your target age and lifestyle. Claim your ₹50,000 extra 80CCD(1B) deduction before this financial year ends. SEBI-Registered. ARN: ARN-356458

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