NPS Calculator
To be financially secure in retirement, you need to save a lot of money over time. However, trying to guess how your National Pension Scheme contributions will grow based on market-linked returns and tax breaks can lead to not saving enough or saving too much.
An NPS calculator gives a broader picture to you to show exactly how much money you will have when you retire. It will help you evaluate how much your monthly pension will be, and how much you will save on taxes. This lets you confidently increase your investments or move money between stocks, bonds, and government securities.
This tool proves invaluable for India's salaried class and self-employed, bridging the gap between today's SIPs and tomorrow's annuity income.
Why Need an NPS Calculator?
Many people don't realise how inflation lowers buying power or how NPS's 40–60% annuity split affects steady income, especially since life expectancies are rising and retirement phases are getting longer (25–30 years). An NPS calculator shows you these things right away. It tells you if your current ₹5,000 monthly contribution is enough to build a ₹30,000 post-retirement pension, taking into account employer matches and tax breaks under 80CCD.
It helps you get the most out of your money for things like paying for travel or healthcare without taking out too much of your principal too soon.
What is an NPS Calculator?
An NPS (National Pension System) calculator is a simple online tool that helps you figure out how much money you'll have when you retire based on your regular contributions, expected returns (usually between 8% and 12%, depending on the fund you choose), and annuity rates. It also shows you the tax benefits and the monthly pension you'll get after age 60.
When the time comes, you can take out 60% of the money as a lump sum without paying taxes on it.
How Does an NPS Calculator Work?
It makes NPS's compounding power across different types of assets simpler to understand, and this lets you adjust your contribution when things change in your life, like when you get a raise or change jobs. You can use Tier I with a lot of equity for growth or conservative debt for stability. You can also find shortfalls early and use an extra ₹50,000 deduction under 80CCD(1B) that goes beyond the usual 80C limits.
In the end, it encourages proactive changes that make sure NPS fits in with EPF, PPF, or mutual funds for a complete retirement.
Example: NPS Calculator Explanation
Take a 35-year-old contributing ₹10,000 monthly to NPS with 10% expected returns till age 60 (25 years), employer match of 10% basic salary (₹5,000/month), and 40% corpus for annuity at 6% rate.
Total contributions | ₹10,000 × 12 × 25 = ₹30 lakhs (self) + ₹15 lakhs (employer) = ₹45 lakhs. |
Projected corpus | Around ₹1.8-2 crore (compounding magic) |
Lump sum (60%) | ₹1.08-1.2 crore tax-free |
Annuity (40%) ₹43-48 lakhs buys a ~₹25,000-30,000 monthly lifelong pension.
This illustrates how starting early multiplies outcomes, delaying to 45 halves the corpus.
How to Use the Stockify NPS Calculator
Using the Stockify’s NPS Calculator is quick and easy:
To start, enter your current age, monthly contribution (including employer tier, if applicable), and retirement age. The tool will thereafter calculate the time horizon and baseline growth.
Next, select an annuity percentage (at least 40%) and expected returns (8–12%, conservative, moderate, or aggressive), in addition to spouse coverage options. This is going to let you evaluate pension streams and tax savings.
Finally, go into the breakdown of the savings, lump sum, weekly payout, and gaps, and then make amendments to scenarios such as increased contributions for quick fixes.
Advantages of Using Stockify's NPS Calculator
India-specific integrations:
The calculator auto-calculates employer matching under 80CCD(2) up to 14% salary + real annuity quotes from providers
Visual asset allocation sliders:
Adjust equity exposure (up to 75% till age 50) for hyper-accurate projections
Mobile-optimised progress trackers:
Syncs with PRAN, exports reports for advisors, sensitivity analysis for inflation (6-8%)
Free, no-login access:
Includes tax calculator, comparisons with EPF/PPF/mutual funds, and scenario testing for rate changes
FAQ
NPS or National Pension Scheme is a voluntary pension scheme. It is available for all Indians aged 18-70 that offers market-linked returns with tax perks. The scheme is ideal for salaried employees via employer auto-debit or for self-employed individuals building a Tier I corpus.
Your pension from the NPS corpus depends on annuity rate (5-7%). For example, a ₹50 lakhs annuitized yields ₹20,000-25,000/month lifelong. It is calculated as (Corpus × Annuity Rate)/12.
Under Section 80C, you can deduct up to ₹1.5 lakh from your taxes for your own contributions to the NPS. Under Section 80CCD(1B), you can deduct an extra ₹50,000. Under Section 80CCD(2), your employer can deduct up to 10-14% of your basic salary. When the NPS matures, you can take out 60% of the corpus as a tax-free lump sum.
This is how you can withdraw NPS before 60: a) Partial (20-25%) after 3 years for specific needs b) Full exit before 60 returns corpus with gains.
NPS offers superior tax efficiency with over ₹2L deductions (80C, 80CCD1B/2) plus tax-free 60% lump sum withdrawal. On the other hand, mutual funds are limited to ₹1.5L ELSS under 80C with gains taxed after 1 year. Equity exposure in NPS is capped at 75% until age 50 then reduces automatically, compared to mutual funds allowing 100% equity for higher growth potential. NPS mandates 40% corpus for lifelong annuity pension, whereas mutual funds provide no guaranteed income relying on SWP or lump sums. NPS lacks flexibility with lock-in till 60 and restricted partial withdrawals, unlike mutual funds' full liquidity anytime. NPS suits tax-saving with steady pension needs; mutual funds excel for lump-sum goals and aggressive growth seekers.
Corpus to nominee; if post-60, spouse gets pension, then children/legal heirs receive the remaining annuity balance.
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