NPS Calculator

The National Pension System (NPS) is a market-linked investment specially focused for retirement planning. The NPS calculator lets you easily calculate the amount of retirement corpus you can build by investing in NPS today.

Investment plan

  • Aggressive
  • Moderate
  • Conservative

Monthly Investment amount

Current Age

 Years

You will get

₹27.40L

as lumpsum on maturity

+

You will get

₹9.89K/ month

as pension income (lifelong)

Expenses Saved

₹ 11.69L

Capital gains tax saved

₹4.31L

Income tax saved

₹32.40K

Assumption: You will withdraw 60% of the maturity amount on retirement age (60 years)

Note: Your nominee will get the remaining 40% (₹18.27L) when you are no more

What is NPS?

The NPS (National Pension System) is an retirement planning investment plan. It was launched by the Indian Government to provide a cost-effective, tax-efficient, and flexible retirement benefit for all Indian citizens. NPS aims to cultivate a savings habit specifically for retirement among individuals.

The major benefit of investing via NPS is the significant tax benefits that it offers. The tax benefits apply via (1) Income Tax saved annually as your investment amount is exempt from taxation, (2) Capital gains tax saved when rebalancing during the investment period, and (3) Capital gains tax saved at withdrawal.

NPS is also the world's lowest-cost investment product, with an expense ratio of as low as 0.02%. This is 50 times lower vs. Direct Mutual Funds and about 100 times lower vs. Regular Mutual Funds. This can have a significant impact on the amount of money in your retirement corpus.
 

What is an NPS Calculator?

An NPS calculator is a tool that calculates the total retirement corpus, monthly pension & returns on your NPS investments. You can input a few basic details to get an estimate of the retirement corpus you can build over time. Using the NPS calculator, you can find the amount of tax-free lump sum amount and the amount of lifelong pension income you will get if you start investing in NPS today.

The NPS calculator will show you the total amount of money invested, the estimated future value of your retirement corpus, and your total gains. Further, it will show you the amount of money you can withdraw tax-free as a lump sum amount on retirement (max 60%) and how much monthly pension income you will receive for the rest of your life. When you are no more, the remaining NPS corpus (40%) passes on to your nominee.

The NPS calculator also shows calculates estimated tax savings by investing in NPS. You can save income tax up to ₹62,400 every year by investing in NPS. This is per income tax sections 80CCD(1) and 80CCD(1B) of the Income Tax Act. Further, your retirement corpus compounds completely tax-free and you have zero capital gains tax liability for the lump sum amount you withdraw at retirement. The INDmoney NPS calculator gives you an estimate of both these forms of tax savings.
 

How to use the National Pension Scheme Calculator?

The NPS calculator is easy to use and is highly convenient for beginners and new investors to estimate their retirement corpus, monthly pension income, and expected tax savings on their NPS investment. You can run the NPS calculator based on any NPS investment plan.
 

  • Investment Plan: The NPS investment plan is essentially your risk profile. It defines how much of your money should be invested in Equity, Corporate Debt, and Government Debt. This input is used by the NPS fund manager to allocate your money, it can be aggressive, moderate, or conservative. Alternatively, you can choose a custom plan, wherein you can define your own custom asset allocation.


There are two ways to use the NPS calculator:

Investment Amount Approach

This approach is based on what is your monthly/annually investment amount. If you want to calculate the future value of your retirement corpus for a given investment amount, this option should be used. In this option, you can provide the following inputs to the NPS calculator:

  • NPS Investment Amount: This is the fixed sum you plan to invest at regular intervals.
  • Current Age: This is your current age, it is used to estimate your future investment duration.
  • Investment Plan: This can be aggressive, moderate, or conservative

Retirement Goal Amount Approach

This approach is based on how much corpus you want at retirement. If you want to calculate the NPS investment amount required to reach a target retirement corpus amount, this option should be used. In this option, you can provide the following inputs to the NPS calculator:

  • Retirement Goal Amount: This is the planned retirement amount you want to achieve.
  • Current Age: This is your current age, it is used to estimate your future investment duration.
  • Investment Plan: This can be aggressive, moderate, or conservative.

Once you follow the above steps, the NPS calculator shows you the total amount invested, your total gains, and the estimated future value of your retirement corpus. Further, the NPS calculator shows the maximum tax-free amount you will be able to withdraw as lumpsum and the amount of lifelong monthly pension you will receive. Finally, the NPS calculator will show the estimated income tax and long-term capital gains tax you will save by investing in NPS.

With the INDmoney SIP calculator, you can plan, invest, and grow your wealth with confidence. You can start a SIP investment in Mutual Funds, Indian Stocks, and even US Stocks on INDmoney. Start using our SIP Calculator and invest today to experience the wonder of compounding firsthand.

Benefits of the NPS Calculator Online

 

Retirement Planning

The NPS calculator allows you to estimate the amount of NPS investment required to fund your retirement. You can also use the retirement calculator to estimate what is the right retirement corpus for you based on your lifestyle. The NPS calculator also tells you how much monthly pension income you can receive in retirement. As this is a complex calculation to do manually, the NPS calculator makes this calculation significantly easier for you to do.
 

Tax Savings

The NPS calculator shows your estimated tax savings if you start investing in NPS. This is shown for both (1) Income tax and (2) Long-term capital gains tax savings. As tax saving is a major benefit of NPS investments, clearly showing the estimated tax saving makes it very helpful for investors to quantify the amount of tax savings possible via NPS investing.
 

Expense Savings

The NPS calculator shows your estimated expenses saved if you start investing in NPS. NPS is the world's cheapest investment product, with an expense ratio of just 0.02%. This makes NPS investing significantly cheaper vs. other comparable products such as Mutual Funds and Indian Stocks. The NPS calculator clearly shows the amount of money saved in expenses when investing via NPS.

Frequently Asked Questions

  • What is the interest rate on NPS investments?

  • Can I change the NPS investment plans?

  • What is an annuity?

  • Which is better NPS or PPF?

  • What are the different types of NPS accounts?