About NPS Calculator
The NPS Calculator is a simple and easy-to-use online tool designed to help you estimate your retirement savings under the National Pension System (NPS). By entering basic details like your monthly or one-time contribution, expected return rate, and retirement age, the calculator instantly shows your total investment, interest earned, and maturity amount.
It also provides a clear breakdown of tax-free withdrawal (60%) and mandatory annuity contribution (40%) as per NPS Tier-I rules. Additionally, the interactive chart helps you visualize how your investment grows over time.
This tool is perfect for anyone who wants to plan their retirement effectively and understand how much wealth they can build through NPS.
⭐ How to Use NPS Calculator (Step-by-Step Guide)
The NPS Calculator is a simple online tool that helps you estimate how much wealth you can create through the National Pension System (NPS). Using this calculator, you can quickly understand your expected retirement corpus, total contribution, interest earned, and annuity amount.
Below is a complete guide on how to use the NPS calculator correctly.
✅ 1. Select Contribution Type
The calculator gives you two investment options:
a) Monthly Contribution (SIP Mode)
Use this option if you invest a fixed amount every month into your NPS account.
b) One-Time Contribution (Lumpsum Mode)
Choose this if you plan to deposit a single amount instead of monthly contributions.
✅ 2. Enter the Contribution Amount
Depending on the mode you selected:
If Monthly Contribution:
- Enter the amount you want to invest every month.
- Use the slider or type the value directly.
If One-Time Contribution:
- Enter the lump-sum amount you plan to deposit.
✅ 3. Choose Expected Return (p.a.)
NPS returns generally vary based on equity and debt allocation.
- Default value: 10%
- You can adjust between 5% – 20%
This gives you an approximate return based on historical NPS performance.
✅ 4. Enter Your Current Age
This helps the calculator determine how many years you will invest before retirement.
Example:
- If you are 30 years old, enter 30.
✅ 5. Select Your Retirement Age
You can retire from NPS between 60 to 70 years.
Example:
- If you plan to retire at 60, enter 60.
The calculator then determines your total investment duration.
✅ 6. Apply the 40% Annuity Rule (Optional)
By default, the calculator applies the Tier-I NPS rule:
- 40% of maturity amount goes to Annuity
- 60% can be withdrawn tax-free
You may uncheck this box if you want full flexibility or for Tier-II calculations.
✅ 7. View the Results
The calculator instantly shows:
✔ Total Contribution
The total money you have invested during your NPS tenure.
✔ Interest Earned
The profit earned from market returns.
✔ Maturity Amount
The total value you will receive at retirement.
✔ Tax-Free Withdrawal (60%)
The maximum amount you can withdraw without tax.
✔ Amount for Annuity (40%)
The amount used to buy an annuity that gives you monthly pension.
✅ 8. Visualize Investment vs Returns (Chart)
The calculator also displays a donut chart that shows:
- Your total contribution
- Total interest earned
This makes it easy to understand how much of your retirement corpus is from your own investment and how much is from growth.
⭐ Final Summary
The NPS Calculator helps you estimate your retirement savings based on your contributions, age, return rate, and annuity rule. It is extremely useful for planning long-term financial goals and identifying how much you should invest today to build a strong retirement corpus.
