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 for
individuals who retire from private-sector jobs. Prudent investors
often choose various avenues of investment to ensure a sufficient
corpus or a regular source of income for their retirement. One such
option that is preferred by most investors is the NPS (National
Pension System).

NPS provides a platform for retirement planning to
investors who are risk-averse. This voluntary retirement saving
scheme promotes savings that can be set aside systematically
throughout one’s working life. The idea is to create a corpus for
use during retirement.

What is an NPS calculator?

NPS calculator is an automated tool that allows
investors to gain a fair estimate of the total wealth gained,
expected maturity value of the investment, expected monthly
annuity income, and total annuity. These estimates are dependent
on the NPS contribution made by an investor throughout the
investment tenure.

NPS calculator lets investors get a fair estimate of
how much investment is needed to achieve certain financial
goals. It also provides an insight into the power of
compounding, since the longer the tenure, the higher will be the

Steps for using fisdom’s NPS calculator

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

Inputs required in NPS calculator

A user must begin by entering the below-mentioned

  1. Amount of investment – Investors must begin by entering the
    estimated amount of monthly contribution towards NPS.
  2. The present age of the investor–For the NPS calculator to
    estimate the number of years of contribution towards the
    scheme, the user must enter his/her present age.
  3. Retirement age – Another field that is important and
    contributes towards estimating years of contribution is the
    retirement age.
  4. Investment amount–The amount that an investor expects to
    contribute every year.
  5. Rate of interest–The ongoing rate of return on NPS.
  6. Percentage investment in annuity plan–The percentage of the
    total corpus or pension wealth that an investor would like
    to reinvest at maturity towards an annuity. In this context,
    Annuity is the pension amount that an NPS subscriber can
    receive on a monthly basis from the Annuity Service Provider

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

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

By considering all of these inputs, the NPS calculator will
compute the net amount and pension amount that an investor can
fetch at maturity.

Additional read – NPS Vs PPF – Where do I invest

Reading results of NPS calculator

The fisdom NPS calculator provides a summary of
results on the right side section. Here, an investor can see the
maturity value of pension contribution against the total
investment made. This is the amount that one can get at
retirement if contributions are regularly made, as per estimates
during the investment tenure.

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

Understanding NPS calculator working through
an example

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

Before using the NPS calculator, an investor must
first be sure about the frequency of investment, whether monthly
or yearly. Also, it makes sense to know the amount that one
would like to withdraw at maturity or retirement.

Ms Nisha is a 24-year-old government employee who
wants to subscribe to the National Pension Scheme. She wants to
contribute Rs. 24,000 every year towards the scheme.
NPS maturity for any subscriber is 60 years. Thus, Ms Nisha can
contribute for up to 36 years in NPS with an expected interest
rate 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 account
at retirement will reflect as below:

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

The calculator gives an estimation of net wealth
gained and monthly pensions that can be earned from the
investment. However, it is to be noted that this does not
guarantee the values calculated.

NPS schemes allocate a certain portion of funds
towards equities, depending on the type of account selected by
an investor. Thus, the actual returns generated could vary
depending on the percentage allocation towards equities and the
overall performance of underlying assets combined with market

How can an NPS calculator benefit investors?

The National Pension Scheme (NPS) calculator gives an
insight into the return on capital along with regular income
earnings through monthly pension that can be earned from the
investment. Here are some of the other noteworthy benefits of
this calculator:

  1. NPS Calculator allows an investor to estimate the monthly
    contribution required towards NPS for gaining a certain
    amount of wealth.
  2. NPS calculator is an easy-to-use tool for making an informed
    decision on retirement investment
  3. By selecting different investment amounts and interest
    rates, an investor can gauge the possible fluctuations in
    returns from the investment, especially from a long-term

Who should use the NPS calculator?

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

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

Why is NPS a good investment alternative?

NPS investment offers a substantial corpus for
retirement along with a regular source of income through annuity
pension. The objective of NPS investment is to establish a
corpus fund that can provide a certainty around monthly income

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

NPS is a retirement plan and investors mostly get attracted to
it for associated tax benefits combined with a balanced
portfolio approach. Since NPS is a long-term investment, its
benefit can be available only after retirement with very limited
scope of premature withdrawal.

An investor can select the exposure type depending on personal
comfort with market risk and fluctuations. It is important to
consider the cost of living and earnings along with other
financial commitments before making an investment in NPS.

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


While NPS investment is mostly viewed by investors
from a tax-saving standpoint, it is also important to consider
the post-retirement benefits that this scheme can fetch. What
better way to easily estimate the returns from NPS than by using
NPS calculator. With easy to follow steps of NPS calculator, one
can know the corpus amount along with a regular pension that can
be 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 of

Can we stop NPS before retirement?

If you want to make a premature exit from NPS, i.e., before the age of
60, you need to utilize at least 80% of the total pension corpus for
purchasing an annuity to get a regular monthly pension income. The
remaining 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 PPF
in 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 as
this is managed by the Govt. But having said that, NPS is a market
linked instrument. Investors can reduce the equity allocation as they
near the age of 60. This ensures lower risk and stable returns.