TekproAI — NPS Calculator

NPS Corpus Planner — Retirement Calculator

Monthly Contribution ₹

5.0K

₹

Current Age Years

30Y

Yrs

Retirement Age Years

60Y

Yrs

Expected Annual Return % p.a.

10.0%

Annuity Purchase (% of corpus)

Want a guaranteed, EEE tax-free savings option? Try the PPF Calculator →

ⓘ NPS returns are market-linked. 60% lump sum at retirement is tax-free. 80CCD(1B) deduction of ₹50,000 is available only under the Old Tax Regime.

■ Invested ■ Wealth Gained

NPS Corpus Growth

📊 Year-wise Breakdown

💡 Smart NPS Tips

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Start NPS early — compounding doubles your corpus — Starting NPS at 25 vs 35 can double your retirement corpus at the same contribution. Even ₹2,000/month from age 25 at 10% grows to over ₹1.4 crore by 60.

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Claim the exclusive ₹50,000 under 80CCD(1B) — NPS gives you an additional ₹50,000 deduction over and above the ₹1.5L Section 80C limit — but only under the Old Tax Regime. This alone saves ₹10,400–₹15,600 in tax per year.

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Choose Active Choice for better long-term returns — Under 40? Consider Active Choice with 75% Equity (E) allocation. Historically, NPS Equity funds have returned 12–14% p.a. over 10 years — significantly more than the default Auto Choice.

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The 60% lump sum at retirement is fully tax-free — At age 60, you can withdraw 60% of your entire NPS corpus as a tax-free lump sum. Plan your withdrawal so this covers large retirement goals debt-free.

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NPS + PPF = the perfect retirement combo — Use PPF for the guaranteed, fully tax-free corpus (within ₹1.5L 80C). Use NPS for the extra ₹50,000 80CCD(1B) deduction and market-linked growth. Together they cover both security and inflation-beating returns.

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Employer NPS under 80CCD(2) works in New Regime too — If your employer contributes to your NPS Tier I, up to 10% of basic salary is deductible under 80CCD(2) — available even under the New Tax Regime. Ask your HR to route part of CTC through NPS.

Frequently Asked Questions

What is the NPS interest rate?

NPS is market-linked, not fixed-rate. Returns depend on asset class (Equity E, Corporate Bonds C, Govt. Securities G) and fund manager. Tier I Equity funds have historically returned 12–14% p.a. over 10+ years. Conservative (G) funds return ~8–9% p.a. Model different scenarios using the Expected Return input above.

What is the extra tax benefit under 80CCD(1B)?

Section 80CCD(1B) provides an additional deduction of up to ₹50,000 on NPS self-contributions — over and above the ₹1.5 lakh Section 80C limit. This is available only under the Old Tax Regime and can save ₹10,400–₹15,600 annually depending on your slab. Employer NPS contributions under 80CCD(2) are allowed in the New Regime.

How much of NPS corpus is tax-free at maturity?

At retirement (age 60), 60% of the NPS corpus withdrawn as lump sum is fully tax-exempt. The remaining 40% (minimum) must be used to purchase an annuity. The annuity income (monthly pension) is taxable as per your income slab at retirement.

Can I exit NPS before age 60?

After 10 years, you can partially withdraw up to 25% of self-contributions for specific purposes (children's education, marriage, medical emergency, house purchase). For full premature exit before 60, 80% of corpus must be annuitised. Full withdrawal flexibility is available only at age 60.

NPS vs PPF — which is better?

NPS potentially offers higher corpus (market-linked equity returns + exclusive ₹50K 80CCD(1B) deduction) but locks funds until 60 and annuity income is taxable. PPF offers guaranteed 7.1% fully tax-free returns with more liquidity. Ideal strategy: invest in both — PPF for the guaranteed tax-free base within 80C, NPS for the extra ₹50,000 deduction under 80CCD(1B).

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For educational use only. NPS returns are market-linked and not guaranteed. Annuity rates vary by provider and age. Tax calculations are based on FY 2025-26 slabs and may change. TekproAI is not a SEBI-registered investment advisor or PFRDA-registered NPS distributor. Terms of Use