NPS Calculator
📈 Calculate the future value of your one-time investment with ease
Monthly Investment (₹)
Expected return rate (% p.a.)
Time Period (in years)
Note: To see the chart, please view this in a larger screen
Calculated Returns
Invested Amount
₹ 3,60,000
Estimated Returns
₹ 75,076
Total Value
₹ 4,35,076
What is the National Pension Scheme (NPS)?
The National Pension Scheme (NPS) is a government-sponsored retirement savings program designed to help individuals build a pension corpus over time. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), NPS encourages disciplined savings by allowing subscribers to invest regularly and accumulate wealth for post-retirement life. It offers market-linked returns and flexible investment choices based on risk appetite.
Features
- Voluntary Participation - Open to all Indian citizens between 18–70 years
- Flexible Contributions - You can choose how much and how often to invest
- Two Account Types - Tier I (Mandatory retirement account with tax benefits and withdrawal restrictions) and Tier II (Optional savings account with more liquidity and no tax benefits)
- Choice of Asset Classes - Allocate funds across equities (E), corporate debt (C), government bonds (G), and alternative investments (A)
- Portable - Account can be accessed from anywhere in India and is transferable between employers and states
- Professional Fund Management - Funds are managed by PFRDA-registered pension fund managers
Benefits
- Tax Benefits - Under Section 80C and an additional ₹50,000 under Section 80CCD(1B)
- Market-linked Growth - Potential for higher returns than traditional pension schemes
- Low Cost - One of the lowest-cost retirement products available in India
- Retirement Security - Helps build a stable retirement corpus with a structured withdrawal plan
- Partial Withdrawals - Allowed under specific conditions like education, medical treatment, or home purchase
- Annuity Purchase - Ensures a regular pension after retirement
Eligibility & Requirements
- Any Indian citizen (resident or non-resident) between 18 and 70 years
- Must complete KYC through a POP (Point of Presence) or online portal
- An individual can hold only one NPS account throughout their lifetime
- Non-Resident Indians can also participate in NPS
How is NPS Calculated?
The returns on NPS investments are market-linked and depend on your chosen asset allocation and the performance of fund managers. Since contributions are made regularly (often monthly), returns are calculated using the XIRR (Extended Internal Rate of Return) method, which accounts for multiple investments over time.
Each contribution buys units of your selected funds at the prevailing Net Asset Value (NAV). Over time, the increase in NAV and the power of compounding help your corpus grow.
Each contribution buys units of your selected funds at the prevailing Net Asset Value (NAV). Over time, the increase in NAV and the power of compounding help your corpus grow.
Lock-in Period
- For Tier I accounts, the lock-in period lasts until the age of 60.
- Early exit is permitted after 3 years, but only 20% of the corpus can be withdrawn lump sum; the remaining 80% must be used to purchase an annuity.
Types of NPS Accounts
- Tier I (Mandatory)
- Primary retirement account
- Lock-in till retirement
- Eligible for tax deductions
- Tier II (Optional)
- Works like a savings account
- No lock-in (except for government employees claiming tax benefits)
- No tax deductions available