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Finance

NPS Calculator (National Pension System — E, C & G Funds)

Calculate your NPS retirement corpus and monthly pension by setting individual expected returns for each asset class — Equity, Corporate Bonds and Government Securities.

Contribution Details

Asset Allocation & Expected Returns

Active Choice allows up to 75% in Equity (E). Auto Choice (LC75) starts at 75% E and reduces automatically with age.

Asset ClassAllocation (%)Expected Return (%)

E — Equity

Nifty 50 index funds

C — Corporate Bonds

Rated corporate debt

G — Government Securities

G-secs & T-bills

Total allocation: ✓ 100%

At Retirement

%

Minimum 40% must be used to purchase an annuity.

Annuity rates from PFRDA-empanelled insurers typically 5–8%.

Result

Total Corpus

₹1,21,55,403

Lump Sum (Withdrawal)

₹72,93,242

Tax-free up to ₹72,93,242 (60% of corpus)

Annuity Corpus

₹48,62,161

Monthly Pension

₹24,311

Estimated at 6% annuity rate p.a.

Investment Period

30 years

Blended Return

10.30% p.a.

Corpus growth — invested vs total value (by age)

Retirement corpus split

Concept

The National Pension System (NPS) is a government-backed, market-linked retirement savings scheme regulated by PFRDA. It is portable across jobs and locations, making it one of the most flexible long-term retirement vehicles in India.

Subscribers allocate contributions across three asset classes with different risk-return profiles: E (Equity — Nifty 50 index funds, highest return potential), C (Corporate Bonds — AA+ rated debt, moderate returns), and G (Government Securities — lowest risk). Under Active Choice, you set your own mix with a maximum 75% in E. Auto Choice (Lifecycle Fund) starts at 75% E and gradually shifts to safer assets as you approach retirement.

At retirement, PFRDA mandates that a minimum of 40% of the corpus be used to purchase an annuity from an empanelled insurer, which provides a monthly pension for life. The remaining 60% can be withdrawn as a tax-free lump sum — making NPS EEE on the withdrawal portion.

NPS offers substantial tax benefits: contributions up to ₹1.5 lakh qualify for deduction under Section 80CCD(1) within the overall 80C limit. An additional ₹50,000 is deductible under Section 80CCD(1B) — exclusive to NPS and over and above the 80C ceiling — making it one of the highest total deduction limits available.

Formula

Blended Return=(E% × E_ret) + (C% × C_ret) + (G% × G_ret)100
Corpus (FV)=P × (1+i)n − 1i × (1+i)
Monthly Pension=Annuity Corpus × Annuity Rate12

Variables

P₹/month
Monthly contribution to NPS.
E / C / G %
Allocation percentages across Equity, Corporate Bonds and Government Securities — must sum to 100%.
i
Monthly rate = blended annual return ÷ 12 ÷ 100.
n
Total months = investment years × 12.
Annuity %
Percentage of corpus used to buy an annuity — minimum 40% by PFRDA regulation.
Annuity Rate%
Annual payout rate from the insurer — typically 5–8% p.a. from PFRDA-empanelled insurers.