NPS Calculator
₹50,000 Extra Tax Saving
National Pension Scheme
Calculate your NPS corpus, 60% tax-free lump sum, and monthly pension estimate. Maximise the unique 80CCD(1B) deduction that most Indians overlook.
NPS Calculator
National Pension Scheme — Tier 1 & Tier 2, corpus projection and monthly pension
NPS — At a Glance
Key facts every NPS subscriber should know
| Feature | NPS Tier 1 | EPF | PPF |
|---|---|---|---|
| Returns | Market-linked (8–12%) | 8.25% (fixed) | 7.1% (fixed) |
| Tax Deduction | ₹2L total (80C+80CCD(1B)) | ₹1.5L (80C) | ₹1.5L (80C) |
| Withdrawal | 60% at 60 (tax-free) | Full (after 5yr service) | Full at maturity (EEE) |
| Lock-in | Till age 60 | Till employment | 15 years |
| Best For | Higher returns + tax saving | Salaried employees | Guaranteed + flexible |
NPS Masterclass
Tiers, asset classes, tax benefits, fund managers and withdrawal rules
Tier 1 vs Tier 2
- Tier 1: Pension account — locked till 60. Tax benefits under 80CCD. Mandatory 40% annuity at maturity. Partial withdrawal allowed for specific needs after 3 years.
- Tier 2: Savings account — fully liquid, no lock-in, no annuity requirement. No tax benefit on contributions (Old Regime).
The Tax Advantage
- 80CCD(1): Up to ₹1.5L within 80C limit
- 80CCD(1B): Extra ₹50,000 deduction!
- Employer NPS: 80CCD(2) — no cap!
- At 30% bracket: ₹65,000 total tax saved/yr
- 60% lump sum at maturity: fully tax-free
Choosing Your Fund Manager
- 8 registered fund managers: SBI, LIC, HDFC, ICICI, Kotak, UTI, Aditya Birla, Max Life
- Compare 5–10 year equity tier returns
- Can switch fund manager once per year free
- Active Choice vs Auto Choice (LC-75/50/25)
Withdrawal Rules
- 60% lump sum at age 60 — tax-free
- 40% mandatory annuity — monthly pension for life
- Partial withdrawal after 3 years (up to 25%) for: education, medical, housing
- Early exit before 60: 80% to annuity, 20% lump sum
NPS Pro Tips
Maximise your NPS tax savings and corpus
₹50K Extra Deduction Under 80CCD(1B) — Use It Every Year
The 80CCD(1B) deduction is the most underused tax-saving tool in India. At 30% bracket, ₹50,000 NPS contribution saves ₹15,600 in tax. Invest those savings back into equity SIP for exponential compounding over 25–30 years.
Keep 75% Equity Till Age 50 for Maximum Corpus Growth
NPS allows up to 75% equity (Asset Class E) till age 50. This is optimal for accumulation. Many subscribers mistakenly choose conservative allocation and sacrifice lakhs in returns. Use Active Choice to maximize equity in your 30s and 40s.
Active Choice Outperforms Auto Choice for Young Investors
Auto Choice gradually reduces equity as you age — sensible but conservative. Active Choice lets you stay at 75% equity longer. If you are below 40 and disciplined, Active Choice with maximum equity will likely generate 30–40% more corpus over 25+ year horizon.
Frequently Asked Questions
NPS — every question answered
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