NPS Calculator
Project your NPS corpus and pension based on your monthly contributions.
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Amount you contribute to NPS every month
Common questions
What are the NPS tax benefits?
Under old tax regime: (1) ₹1.5 lakh under Section 80CCD(1) — within the overall 80C limit. (2) Additional ₹50,000 under Section 80CCD(1B) — exclusively for NPS, no other 80C instrument offers this. (3) Employer contributions up to 10% of basic under 80CCD(2) — no monetary cap. Under new tax regime, only employer NPS deduction (80CCD(2)) is available.
What is the mandatory annuity requirement?
At age 60, you must use at least 40% of your NPS corpus to purchase a lifetime annuity from an IRDA-approved insurance company. The remaining 60% is tax-free lump sum. If your total corpus is less than ₹5 lakh, you can withdraw everything as lump sum.
What is the difference between Tier 1 and Tier 2 NPS?
Tier 1 is the primary pension account — tax benefits apply, but withdrawals are restricted until age 60. Tier 2 is a voluntary savings account — no tax benefits (except for government employees), but fully liquid and can be withdrawn anytime. Think of Tier 1 as your locked-in pension and Tier 2 as a flexible investment account.
How does NPS compare to EPF and PPF?
EPF: fixed return (~8.25%), employer contributes 12% of basic, fully taxable on withdrawal (unless 5+ years). PPF: ~7.1% guaranteed, tax-free maturity, but no equity exposure. NPS: market-linked returns with equity component, superior tax benefits (especially 80CCD(1B)), but 40% must go into annuity. NPS is best for high earners wanting maximum tax savings.
Can I withdraw from NPS before 60?
Partial withdrawal (up to 25% of contributions) is allowed after 3 years for specific purposes: children's education/wedding, house purchase, treatment of critical illness. Early exit (before 60) requires 80% to go into annuity — much less favourable than waiting until 60.