NPS Calculator India 2026

Calculate National Pension System returns, monthly pension, and tax savings under Section 80CCD. Perfect for freelancers planning retirement.

NPS Details

₹

NPS Tier I equity (E) fund has returned ~12-14% historically

Minimum 40% must be used to buy annuity

Extra ₹50K Tax Benefit

NPS gives additional ₹50,000 deduction under Section 80CCD(1B) — over and above the ₹1.5L limit of Section 80C. Available in old regime only.

Total Invested

₹18,00,000

Over 30 years

Total Corpus

₹1,13,96,627

84.2% returns

Monthly Pension

₹22,793

From annuity @ 6%

Retirement Corpus Split

Tax-Free Lumpsum (60%)

₹68,37,976

Withdrawn at retirement — completely tax-free

Annuity Purchase (40%)

₹45,58,651

Generates ₹22,793/month pension

Tax Savings (Old Regime)

80CCD(1B) Deduction

₹50,000

Extra ₹50K above 80C

Annual Tax Saved

₹15,600

At 31.2% slab

Total Tax Saved

₹4,68,000

Over 30 years

Year-wise Growth

YearAgeInvestedCorpusGains
131₹60,000₹63,351₹3,351
535₹3,00,000₹3,90,412₹90,412
1040₹6,00,000₹10,32,760₹4,32,760
1545₹9,00,000₹20,89,621₹11,89,621
2050₹12,00,000₹38,28,485₹26,28,485
2555₹15,00,000₹66,89,452₹51,89,452
3060₹18,00,000₹1,13,96,627₹95,96,627

Compare Retirement Options

See how NPS compares with PPF and SIP

PPF CalculatorSIP Calculator

NPS (National Pension System) — Complete Guide

What is NPS?

National Pension System (NPS) is a government-sponsored pension scheme launched in 2004, now open to all Indian citizens. It offers market-linked returns through equity (E), corporate bonds (C), and government securities (G) fund choices.

NPS Tax Benefits

  • Section 80CCD(1): Up to ₹1.5L (part of 80C limit)
  • Section 80CCD(1B): Additional ₹50,000 (exclusive to NPS)
  • Section 80CCD(2): Employer contribution up to 14% of salary (salaried) or 20% (self-employed)
  • Lumpsum at retirement: 60% withdrawal is completely tax-free
  • Annuity income: Taxable as per your slab at retirement

NPS for Freelancers & Self-Employed

Freelancers can open NPS Tier I account and claim deductions under 80CCD(1) within 80C limit plus additional ₹50,000 under 80CCD(1B). Under old regime, this gives up to ₹2L total tax deduction. Self-employed can also claim up to 20% of gross income under 80CCD(2).

NPS vs PPF vs ELSS — Comparison

FeatureNPSPPFELSS
Returns9-14% (market)7.1% (fixed)12-15% (market)
Lock-inTill 6015 years3 years
Extra Tax Benefit₹50K (80CCD1B)NoNo
Withdrawal60% lumpsum tax-free100% tax-free100% after 1yr (10% LTCG)
Best ForRetirement + Tax savingSafe long-termGrowth + 80C

NPS Fund Performance (Historical)

Fund ManagerEquity (E)Corporate Bond (C)Govt Sec (G)
SBI Pension Fund14.2%9.1%8.8%
HDFC Pension Fund14.5%9.3%9.0%
ICICI Pru Pension14.0%9.2%8.9%
Kotak Pension Fund13.8%9.0%8.7%

Returns are approximate 10-year annualized returns. Past performance doesn't guarantee future results.

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