What does the NPS Calculator do?
The NPS Calculator projects your National Pension System corpus based on the standard 10%+10% employee and employer contribution and the tax benefits available under the scheme. It models your monthly contributions, applies an assumed return on the equity and debt mix, and gives a realistic estimate of the pension fund you will accumulate by retirement — including what the mandatory annuity purchase will look like.
Common uses
- Retirement planning — estimate how your NPS corpus grows with monthly contributions over your working life
- Tax planning — see the impact of the additional deduction under Section 80CCD(1B) of up to 50,000 over and above the 80C limit
- Employer contribution check — model the 10% employer contribution that many employers offer in lieu of or alongside EPF
- Annuity planning — understand how much of the final corpus is used to buy a mandatory annuity at maturity
Key features
- 10%+10% split — models the standard employee and employer contribution of 10% of basic plus D.A.
- 80CCD(1B) ₹50K — reflects the extra tax deduction available beyond the Section 80C limit
- Annuity estimate — shows the portion of your corpus that must be used to purchase a mandatory annuity at retirement
How it works
Enter your basic salary, the NPS contribution percentage, the expected return on your equity and debt allocation, and the number of years until retirement. The tool computes the monthly employee and employer contributions, compounds them at the assumed return, and projects the total NPS corpus. It then shows the mandatory annuity portion and the estimated pension it could generate, along with the tax saving from Section 80CCD(1B).
Verdict
The NPS Calculator gives you a realistic pension corpus projection with the 10%+10% contribution, the 80CCD(1B) tax benefit, and an annuity estimate — free, private, and instant.