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NPS Calculator

The NPS calculator is a great way to estimate your future returns on investment. It provides estimates for how monthly SIPs result in compounding interest that may snowball into a huge pension corpus. The NPS pension calculator is easily accessible and can be used by anyone. One may alter the monthly contributions and/or the expected rate of return to have a clear assessment of the combination required to achieve one’s financial goals. Check your returns on the NPS calculator online.


18 18 50
40 40 60


The values shown here are only for illustration.
The results are generated based on the information provided. It is not intended to be and must not alone be taken as the basis for an NPS decision.

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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What is NPS Calculator?

The NPS calculator is an online tool. It helps the subscriber get a fair idea of the tentative pension that he/she will be able to generate based on their monthly NPS contributions. The NPS pension calculator considers factors like the amount invested, investment tenure based on current age, and investment strategy opted for to generate results. While the NPS return calculator is a convenient way to determine the potential growth of the NPS fund, it does not guarantee the same returns on investment or the exact amount of pension corpus that will be accumulated.

Calculate NPS (National Pension Scheme) Returns Online

The National Pension Scheme calculator is a handy online tool for a potential NPS subscriber.
It enables one to estimate the amount that will be accumulated over the subscription period. At the time of maturity, this amount is segregated into a lump sum amount and money to be set aside for annuity plans as per NPS rules. This bifurcation is provided by the NPS calculator. Also, by being aware of the NPS tax benefits1, one can make a fruitful investment for post-retirement years.

How to Use the NPS Calculator

Just like a SIP calculator for investment in a mutual fund, there is a NPS calculator for NPS investments. A potential subscriber can use the NPS return calculator, which is available online. The results generated by an NPS calculator online are based on three parameters - investment amount, age, and investment strategy. As the results are just an estimate, one can alter the input values to achieve the desired post-retirement fund value.

Steps to Calculate the Maturity Value Using NPS Calculator are:


Investment Amount

Enter the amount you wish to contribute to the retirement kitty. Both options are available - one may choose to contribute monthly or annually. The minimum contribution should be in line with the NPS rules.



As per the NPS rules, individuals between 18 and 60 are eligible to subscribe to the NPS scheme. The NPS account matures automatically when the subscriber turns 60. Therefore, age is an important factor in the NPS calculator. The NPS calculator online will prompt the investor to enter their current age. Thus, (60 - current age) is the investment tenure.


Investment Strategy

The investment strategy in the National Pension Scheme calculator is about the growth rate or the expected returns on investment. This is directly linked to the investor’s risk appetite. The options available are aggressive, moderate, and conservative risk profiles. The rate of returns may range between 8%-15%, depending upon the risk-taking ability. It is pertinent to mention here that these returns are not promised or guaranteed. The actual returns are market-linked and will depend upon the fund's actual performance.

Some NPS calculators give you the extra advantage of choosing your annuity purchase percentage along with the rate on an annuity that you are looking at. These are explained as follows:


Annuity Component

As per NPS rules, a minimum of 40% of the total pension corpus must be used to purchase an annuity at the time of maturity. The remaining 60% is a lump sum withdrawal. However, subscribers have the option to buy an annuity of as high as 100%.


Rate Of Annuity

The amount used to buy the annuity from an Annuity Service Provider (ASP) is further invested to generate a lifetime pension. The rate of annuity will depend upon the type of annuity plan one chooses to invest in at the time of NPS maturity. Set the desired rate of annuity in the NPS calculator to generate a monthly pension amount. 

Formula for Calculating Pension Amounts

NPS calculator uses compounding interest to calculate estimated returns.

The formula for NPS pension calculator is A = P (1 + r/n) ^ nt

A - The total pension amount.

P - The principal amount. It is the monthly or the annual contribution.

R/r - Annual rate of interest

N/n - Number of times interest compounding takes place

T/t - Investment tenure

Example for NPS Calculation

The NPS formula may appear complex. However, the NPS calculator makes the calculation easy and simple. Let’s understand this with the help of an example. 

Mr. A is 30 years old. He plans to contribute Rs. 5000 per month towards his post-retirement kitty. He uses the NPS calculator to figure out the estimated returns:

A. Aggressive Strategy

The estimated returns on investment in an aggressive strategy is around 15% p.a. So if Mr A invests Rs. 5000 per month for 30 years, the total accumulated amount is as follows:

  • Total Investment Amount - Rs. 18,00,000

  • Total NPS Corpus - Rs. 3,50,49,103

  • Lumpsum Amount - Rs 2,10,29,461

  • Monthly Pension - Rs. 93,464

The aforesaid NPS calculation is based on the assumption that Mr A opts for a 60% lump sum withdrawal and invests 40% in an annuity plan from an Annuity Service Provider (ASP). This will generate a monthly pension of Rs. 93,464 at a return on annuity of 8% for the lifetime.  

B. Moderate Strategy

Mr A's risk-taking ability is low. So, he opts for a balanced portfolio. The estimated returns on investment in a moderate strategy is around 12% p.a., so if Mr. A invests Rs. 5000 per month for 30 years, the total accumulated amount is as follows:

  • Total Investment Amount - Rs. 18,00,000

  • Total NPS Corpus - Rs. 1,76,49,568

  • Lumpsum Amount - Rs 1,05,89,741

  • Monthly Pension - Rs. 47,065

The NPS calculator is set at 60% lump sum withdrawal and 40% investment in an annuity plan at an expected return on annuity at 8%.

C. Conservative Strategy

Mr. A has a low-risk appetite and plans to stick to debt instruments that are the least risky. The estimated returns on investment in a conservative strategy is 8% p.a. So if Mr A invests Rs. 5000 per month for 30 years, the total accumulated amount is as follows:

  • Total Investment Amount - Rs. 18,00,000

  • Total NPS Corpus - Rs. 75,01,475

  • Lumpsum Amount - Rs 45,00,885

  • Monthly Pension - Rs. 20,003

The NPS calculator in the above illustration is set at 60% lump sum withdrawal. The balance of 40% is diverted toward purchasing an annuity plan at an expected return on annuity of 8%.

Note: The example is purely illustrative, and returns on investment are estimates and not actual figures.

Who Can Use the NPS Calculator?

The NPS calculator online can be used by anyone. However, only those who are eligible to invest under the NPS scheme can subscribe. As per NPS rules, all Indian citizens between the age of 18 and 60 years can subscribe to the NPS scheme. The potential buyers of NPS can use the NPS return calculator to assess returns that will facilitate their investment decisions.

Benefits of using the National Pension Scheme calculator

It is a great idea to remain informed of the fruits that your present investment decisions may bear in the future. The National Pension Scheme calculator is a valuable tool that helps you correctly ascertain the probable impact of such decisions. The benefits of using the NPS calculator are as follows:

  • The NPS calculator easily computes the total retirement corpus that is split into lump sum amount and annuity portion. This calculation is complex and cannot be done manually. 

  • The NPS returns calculator allows you to estimate returns on investment based on different NPS fund options. Depending upon your risk appetite, one can seamlessly shuffle between aggressive, moderate and conservative investment approaches. 

  • Depending upon the results generated by the NPS Pension calculator, the investment amount can be easily altered keeping in mind the retirement goals. Saving a little more every month will help you reach your investment goals much more easily. So if you have a maturity corpus in mind, the NPS pension calculator can help you calculate backwards to help you reach the monthly investment required. 

  • The NPS calculator online can be easily accessed from any internet-enabled device like mobile or laptop.

  • The National Pension Scheme calculator allows the potential subscriber to review decisions on lump sum amounts and investments toward annuity. As per NPS rules, up to 60% of the NPS fund value can be withdrawn as a lump sum, and the balance goes into the purchase of annuity plans. However, the investor can invest up to 100% in annuity. The NPS pension calculator provides calculations under each scenario, enabling subscribers to make better financial decisions. 

  • The NPS calculator is an effective tool that helps in overall financial planning. Retirement planning is an integral part of financial planning, and making focused decisions helps you stay on track both during working and post-retirement years.   

FAQs about NPS Calculator

1 Can I use the NPS calculator for my retirement planning?

Anyone who is planning to invest in the NPS scheme can use the NPS calculator to have a fair idea of returns on investment. The NPS calculator is specifically designed for determining the pension corpus for retirement planning.

2 What information is required to use the NPS calculator?

When using an NPS calculator, you will be required to input three parameters - current age, investment amount, and investment strategy. 

3 What is the current interest rate of NPS?

There is no fixed rate of interest on NPS investment as it is a market-linked scheme. However, one may get a fair idea of expected returns by looking at past trends. The NPS interest rates have varied between 9%-12% p.a. However, the past trends do not guarantee future returns.

4 Does the NPS calculator assist in calculating the tax amount on withdrawals from NPS?

The NPS calculator helps you ascertain the monthly pension amount that the investor will begin to receive after retirement. The amount will be taxed according to the tax slabs. Thus, the investor gets a fair idea of the tax implications of NPS withdrawals. 

5 What are the tax benefits under NPS?

Both NPS contributions and NPS withdrawals enjoy tax benefits. Tax benefits under Section 80C can be availed up to Rs. 1.5 lakh per year. Exemption for additional Rs. 50,000 can be claimed under Section 80CCD (1B).

Premature withdrawal (up to 25%) after completion of 3 years is exempted from tax. Lump sum withdrawal at the time of maturity is exempted from tax under Section 10 (12A). The investment in the annuity is tax-free under Section 80CCD(5). However, the income earned through the annuity is taxable as per the applicable income tax slabs.

6 Does the pension maturity values vary between tier-1 and tier-2 cities?

No, the NPS pension maturity value does not vary between tier-1 and tier-2 cities. But NPS accounts have two variants, Tier-1 and Tier-2 account types. The NPS pension maturity value varies for these account types. 

7 Is NPS calculated monthly or yearly?

The NPS calculator calculates the monthly pension that the NPS subscriber may receive at the time of retirement.

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