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NPS Calculator

₹0 ₹1.5 L
18 Years 60 Years
60 Years 75 Years
5% 12%

Annuity Plan

(after years of age)

40% 100%
1% 8%

Amount Invested Vs Maturity

  • Total Investment
  • Maturity Value

Maturity Value

Annuity Amount

Amount Received Per Month

At interest rate of % of Annuity Amount

Tip For You

Increasing Investment percentage annually helps to achieve targets faster. 10% is suggested.


Pension is a source of retirement income, especially forindividuals who retire from private-sector jobs. Prudent investorsoften choose various avenues of investment to ensure a sufficientcorpus or a regular source of income for their retirement. One suchoption that is preferred by most investors is the NPS (NationalPension System).

NPS provides a platform for retirement planning toinvestors who are risk-averse. This voluntary retirement savingscheme promotes savings that can be set aside systematicallythroughout one’s working life. The idea is to create a corpus foruse during retirement.

What is an NPS calculator?

NPS calculator is an automated tool that allowsinvestors to gain a fair estimate of the total wealth gained,expected maturity value of the investment, expected monthlyannuity income, and total annuity. These estimates are dependenton the NPS contribution made by an investor throughout theinvestment tenure.

NPS calculator lets investors get a fair estimate ofhow much investment is needed to achieve certain financialgoals. It also provides an insight into the power ofcompounding, since the longer the tenure, the higher will be thebenefits.

Steps for using fisdom’s NPS calculator

Here is the easy process to follow while using theNPS calculator.

Inputs required in NPS calculator

A user must begin by entering the below-mentioneddetails:

  1. Amount of investment – Investors must begin by entering theestimated amount of monthly contribution towards NPS.
  2. The present age of the investor–For the NPS calculator toestimate the number of years of contribution towards thescheme, the user must enter his/her present age.
  3. Retirement age – Another field that is important andcontributes towards estimating years of contribution is theretirement age.
  4. Investment amount–The amount that an investor expects tocontribute every year.
  5. Rate of interest–The ongoing rate of return on NPS.
  6. Percentage investment in annuity plan–The percentage of thetotal corpus or pension wealth that an investor would liketo reinvest at maturity towards an annuity. In this context,Annuity is the pension amount that an NPS subscriber canreceive on a monthly basis from the Annuity Service Provider(ASP).

An important point to note here is that the percentage of totalcorpus reinvested in an annuity should be at least 40%. Thosewho wish to exit the scheme prematurely or before attaining 60years of age have to reinvest a minimum of 80% of pension wealthtowards an annuity.

  1. Annuity rate of interest – User can enter the expected rateof interest on the annuity.

By considering all of these inputs, the NPS calculator willcompute the net amount and pension amount that an investor canfetch at maturity.

Additional read – NPS Vs PPF – Where do I investin?

Reading results of NPS calculator

The fisdom NPS calculator provides a summary ofresults on the right side section. Here, an investor can see thematurity value of pension contribution against the totalinvestment made. This is the amount that one can get atretirement if contributions are regularly made, as per estimatesduring the investment tenure.

The NPS calculator also computes net annuity amountat 40% of maturity value. This helps investors to know the exactamount that they have to park aside at maturity towards anannuity. The annuity per month is displayed on the right-handside bottom of the calculator for investors to gauge the amountof regular income that they can fetch during retirement.

Understanding NPS calculator working throughan example

Let us consider an example to better understand theNPS calculator and its functionality.

Before using the NPS calculator, an investor mustfirst be sure about the frequency of investment, whether monthlyor yearly. Also, it makes sense to know the amount that onewould like to withdraw at maturity or retirement.

Ms Nisha is a 24-year-old government employee whowants to subscribe to the National Pension Scheme. She wants tocontribute Rs. 24,000 every year towards the scheme.NPS maturity for any subscriber is 60 years. Thus, Ms Nisha cancontribute for up to 36 years in NPS with an expected interestrate of 9% per annum. She wishes to purchase an annuity for 50%of the maturity amount and expects a 7% interest on the annuity.

As per the NPS calculator, Ms Nisha’s pension accountat retirement will reflect as below:

Total investment: Rs. 8,64,000Total maturity value: Rs. 65,08,957Annuity amount: Rs. 32,54,478Annuity received per month: Rs. 18,984

The calculator gives an estimation of net wealthgained and monthly pensions that can be earned from theinvestment. However, it is to be noted that this does notguarantee the values calculated.

NPS schemes allocate a certain portion of fundstowards equities, depending on the type of account selected byan investor. Thus, the actual returns generated could varydepending on the percentage allocation towards equities and theoverall performance of underlying assets combined with marketconditions.

How can an NPS calculator benefit investors?

The National Pension Scheme (NPS) calculator gives aninsight into the return on capital along with regular incomeearnings through monthly pension that can be earned from theinvestment. Here are some of the other noteworthy benefits ofthis calculator:

  1. NPS Calculator allows an investor to estimate the monthlycontribution required towards NPS for gaining a certainamount of wealth.
  2. NPS calculator is an easy-to-use tool for making an informeddecision on retirement investment
  3. By selecting different investment amounts and interestrates, an investor can gauge the possible fluctuations inreturns from the investment, especially from a long-termperspective.

Who should use the NPS calculator?

Any individual who is eligible to invest in NPS canuse this calculator to estimate the wealth that can be gainedfrom NPs through a given investment amount.

NPS investments can be made by all Indian citizens who are overthe age of 18 years and under 60 years of age. All NPSapplicants must comply with the Know Your Customer (KYC) normsand furnish relevant documents including identity proof, addressproof, bank account details, etc, while applying for the scheme.

Why is NPS a good investment alternative?

NPS investment offers a substantial corpus forretirement along with a regular source of income through annuitypension. The objective of NPS investment is to establish acorpus fund that can provide a certainty around monthly incomepost-retirement.

NPS funds are used to invest a certain portion inequity and are therefore exposed to market fluctuations,associated risks, and also rewards. The extent of exposure toequity markets depends on multiple factors.

NPS is a retirement plan and investors mostly get attracted toit for associated tax benefits combined with a balancedportfolio approach. Since NPS is a long-term investment, itsbenefit can be available only after retirement with very limitedscope of premature withdrawal.

An investor can select the exposure type depending on personalcomfort with market risk and fluctuations. It is important toconsider the cost of living and earnings along with otherfinancial commitments before making an investment in NPS.

The power of compounding makes NPS an attractive investmentoption for investors. The higher the amount of investment in anNPS scheme, the larger the corpus that can be accumulated aspart of retirement benefit.


While NPS investment is mostly viewed by investorsfrom a tax-saving standpoint, it is also important to considerthe post-retirement benefits that this scheme can fetch. Whatbetter way to easily estimate the returns from NPS than by usingNPS calculator. With easy to follow steps of NPS calculator, onecan know the corpus amount along with a regular pension that canbe earned from NPS investment.


Can I know the applicable tax from NPS calculator?
No, the NPS calculator does not estimate the tax obligations.
What is the current expected rate of return on NPS?
NPS is a market linked investment, so no fixed returns can be estimated.But , the current expected rate of return on NPS is in the range of9-12%.
Can we stop NPS before retirement?
If you want to make a premature exit from NPS, i.e., before the age of60, you need to utilize at least 80% of the total pension corpus forpurchasing an annuity to get a regular monthly pension income. Theremaining 20% can be withdrawn as a lump sum amount.
Which is better NPS or PPF
While both NPS and PPF come with unique benefits, NPS is better than PPFin terms of returns. PPF acts as a safety net with guaranteed returns,while NPS returns may depend on the portfolio of investments.
Is NPS risk free?
NPS comes with comparatively low risk as compared to other investments asthis is managed by the Govt. But having said that, NPS is a marketlinked instrument. Investors can reduce the equity allocation as theynear the age of 60. This ensures lower risk and stable returns.

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