NPS Calculator (National Pension System)

Formula & Calculation Methodology

Calculates monthly compounding contributions from current age to 60 years, with 60% lump sum and 40% annuity split.

M = P 	imes left[rac{(1 + r)^n - 1}{r}
ight] 	imes (1 + r)

Step-by-Step Worked Example

Monthly Contribution: ₹10,000 | Current Age: 28 Years | Expected Return: 10% p.a. | Annuity: 40% @ 6%

1. Investment Horizon = 32 Years (384 Months) | Total Invested = ₹38,40,000
2. Total Accumulated Corpus at Age 60 = ₹2,82,45,417 (~₹2.82 Crore)
3. 60% Tax-Free Lump Sum Withdrawal = ₹1,69,47,250
4. 40% Annuity Investment = ₹1,12,98,167
5. Expected Monthly Pension = ₹56,491 / month for life

Why Invest in National Pension System (NPS)?

NPS is a voluntary retirement savings scheme regulated by PFRDA. It provides an additional exclusive tax deduction of up to ₹50,000 under Section 80CCD(1B), over and above the ₹1.5 Lakh 80C limit.

At age 60, up to 60% of the corpus can be withdrawn completely tax-free, while the remaining 40% is converted into a monthly pension via IRDAI-approved life insurers.

Frequently Asked Questions