NPS Calculator in Ahmedabad
The National Pension System (NPS) is a low-cost, market-linked retirement scheme with extra tax benefits under Section 80CCD(1B). Enter your monthly contribution, expected return and years to 60 to see your corpus. At retirement, at least 40% must buy an annuity (your monthly pension); the rest is a tax-free lump sum.
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How it's calculated
The formula
Corpus = future value of monthly contributions compounded at the expected return to age 60. Lump sum = corpus × (1 − annuity%). Monthly pension = (corpus × annuity%) × annuity rate ÷ 12.
Assumptions
- A constant expected return until retirement (NPS returns are market-linked).
- The chosen share of the corpus annuitised at the chosen annuity rate.
- No charges or taxes modelled on contributions; pension income is taxable.
Sources
Real-world scenarios
See exactly how the numbers play out in the situations people actually face — so there are no surprises before you commit.
₹10,000 a month for 30 years at 10%
Contributing ₹10,000 a month to NPS for 30 years at a 10% blended return builds a corpus of about ₹2.28 crore on just ₹36 lakh invested. At 60 you can withdraw 60% — roughly ₹1.37 crore — completely tax-free, and the remaining 40% buys your pension annuity.
How much pension will it pay?
Annuitising 40% of that ₹2.28 crore corpus at a 6% annuity rate yields a pension of around ₹45,000 a month for life. Choosing a larger annuity portion raises the pension but shrinks your tax-free lump sum — the calculator lets you balance the two.
The extra ₹50,000 tax break
NPS offers an additional ₹50,000 deduction under Section 80CCD(1B), over and above the ₹1.5 lakh 80C limit. For someone in the 30% slab that is up to ₹15,600 saved every year — a return on the tax break alone, before the corpus even grows.
Illustrative figures on standard reducing-balance / compounding assumptions — your actual numbers may vary.
Frequently asked questions
The details worth knowing before you rely on these numbers.
What is the NPS?
The National Pension System is a government-regulated, market-linked retirement scheme. You contribute during your working years; the corpus is invested across equity and bonds at very low cost, and at 60 you take a lump sum plus a monthly pension (annuity).
How is the NPS corpus calculated?
Each monthly contribution is compounded at your expected return until age 60, just like a SIP. At maturity, the calculator splits the corpus into the annuitised portion (which funds your pension) and the lump sum you withdraw.
How much of the 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 regular pension that is taxable as income.
What tax benefits does NPS offer?
NPS contributions qualify for deduction under Section 80CCD(1) within the ₹1.5 lakh 80C limit, plus an exclusive extra ₹50,000 under Section 80CCD(1B). Employer contributions get further benefits under 80CCD(2).
What return does NPS give?
It depends on your equity-debt mix. A balanced NPS allocation has historically returned roughly 9%–11% per annum over the long term, though returns are market-linked and not guaranteed.
What happens to my NPS if I exit before 60?
A Tier I NPS account is a retirement product, so premature exit is restricted: on early exit you can usually take only up to 20% as a lump sum, and at least 80% of the corpus must be used to buy an annuity. Because of this lock-in, contribute to NPS only with money you genuinely earmark for retirement.
What is the difference between NPS Tier I and Tier II?
Tier I is the core retirement account — it carries the tax benefits and the lock-in until 60. Tier II is a voluntary add-on you can open alongside it: it has no lock-in and lets you withdraw anytime, but it does not get the extra tax deductions. This calculator models the Tier I retirement corpus.
Can I choose how my NPS money is invested?
Yes. Under Active Choice you set your own split across equity, corporate bonds and government securities (equity is capped, generally at 75%); under Auto Choice a lifecycle fund automatically reduces equity as you age. A higher equity share raises growth potential and short-term risk — returns are market-linked and not guaranteed.
Is this NPS calculator free?
Yes — it is free, needs no sign-up, and runs entirely in your browser. Your inputs stay on your device unless you choose to speak with an Apex TechFin advisor.
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