NPS (National Pension System) Calculator
What is NPS?
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings during your working life. It helps you build a retirement corpus and provides a regular stream of income (pension) after retirement.
How is NPS Calculated?
Principal: The monthly amount you invest.
Compound Interest: Returns are compounded annually until retirement.
Annuity: At least 40% of the corpus must be used to purchase an annuity (pension plan).
Frequently Asked Questions
It is mandatory for government employees (excluding armed forces) joining after 2004, but
voluntary for all other citizens.
For Tier I accounts, the minimum annual contribution is Rs. 1,000.
Investment up to Rs. 1.5 Lakh is eligible for deduction u/s 80C. An additional Rs. 50,000 can be
claimed u/s 80CCD(1B).