Calculate National Pension System returns
NPS (National Pension System) is a government-sponsored retirement scheme. You contribute regularly, funds are invested in equity/debt/government securities based on your choice, and at 60, you must use 40% to buy an annuity (monthly pension) while 60% can be withdrawn tax-free.
NPS offers triple tax benefits: ₹1.5 lakh under 80C, additional ₹50,000 under 80CCD(1B), and employer contribution up to 10% of salary under 80CCD(2). At maturity, 60% lump sum is tax-free. It's one of the most tax-efficient retirement instruments.
Tier 1 is the main pension account with lock-in until 60 and tax benefits. Tier 2 is a voluntary savings account with no lock-in or tax benefits but offers flexibility. Tier 1 is mandatory; Tier 2 requires an active Tier 1 account.
Yes, you can choose Active Choice (select your own equity/debt/government bond allocation up to 75% equity) or Auto Choice (age-based automatic allocation reducing equity as you age). You can change allocation twice per year.
The entire corpus is paid to the nominee—no mandatory annuity purchase required. The amount is tax-free for the nominee. Ensure you've registered nominees. If no nominee, legal heirs receive the amount after due process.
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