NPS Wealth Builder
Plan your National Pension System contributions
NPS Contribution Details
Enter your monthly NPS contributions
Your contribution: Up to ₹1.5L under 80CCD(1) + ₹50K under 80CCD(1B) = ₹2L max tax benefit
Employer's NPS contribution (if applicable). Leave empty if not applicable.
NPS typically returns 8-12% annually
How Do NPS Calculators Work?
NPS calculators help you project your National Pension System corpus at retirement by calculating monthly contributions, employer matching, and market-linked returns over time. Here's a step-by-step explanation:
Enter Your Contributions
Input your monthly employee contribution and employer contribution (if applicable). NPS allows you to contribute up to ₹1,50,000 under Section 80CCD(1) plus additional ₹50,000 under Section 80CCD(1B) for tax benefits.
Specify Age and Expected Returns
Enter your current age, retirement age (typically 60), and expected annual return rate (typically 8-12% for balanced allocation). NPS returns are market-linked and subject to market risks, so choose a realistic return expectation.
Calculate Retirement Corpus
The calculator computes your total NPS corpus at retirement including both employee and employer contributions, plus estimated returns based on your expected return rate and investment tenure. At retirement, you can withdraw up to 60% as lump sum (tax-free) and use the remaining for annuity (monthly pension).
Understanding Your NPS Calculation
Learn how nps calculations work
Understanding NPS Calculation
NPS (National Pension System) is a voluntary, long-term retirement savings scheme with market-linked returns and significant tax benefits. It's regulated by PFRDA and offers flexible asset allocation options.
Key Points:
- •Triple tax benefit: Section 80CCD(1) up to ₹1.5L + Section 80CCD(1B) additional ₹50K
- •Employer contribution up to 10% of basic salary is also tax-free
- •Market-linked returns typically 8-12% annually over long periods
- •Lock-in until retirement (60 years) ensures disciplined savings
- •Up to 60% can be withdrawn tax-free at retirement
Frequently Asked Questions
Common questions about nps
Disclaimer
These calculators are for estimation and educational purposes only. For personalized financial advice, please consult a qualified financial advisor or chartered accountant.
All calculations are based on standard formulas and current tax laws. Actual results may vary based on individual circumstances and applicable regulations.
What Is NPS and How It Works for Salaried Employees
The National Pension System (NPS) is a government-backed retirement savings scheme designed to help individuals build a long-term retirement corpus. For salaried employees, NPS offers a disciplined way to save for retirement while also providing tax benefits.
NPS vs EPF: Which Is Better for Long-Term Wealth?
NPS and EPF are two widely used retirement savings options for salaried employees in India. While both aim to build retirement wealth, they differ in structure, returns, and flexibility.
How Much Should You Invest in NPS Every Month?
Deciding how much to invest in NPS every month depends on income, financial goals, and retirement plans. Investing too little may result in insufficient retirement funds, while investing too much can strain monthly budgets.