Estimate your NPS (National Pension System) maturity corpus, annuity purchase and monthly pension at retirement.
National Pension System is a low-cost, market-linked retirement product regulated by PFRDA. Tier-1 has a lock-in till 60 (with limited early withdrawals) and offers Section 80CCD(1) (part of ₹1.5 L 80C), 80CCD(1B) (exclusive ₹50k) and 80CCD(2) (employer contribution — no cap in new regime up to 14% for government / 10% for private employees) deductions. Historical CAGR sits around 9–11% for aggressive equity-heavy allocations.
At 60, up to 60% corpus is tax-free lumpsum, and the remaining 40% must buy an annuity (currently taxable at slab). This calculator projects the corpus based on monthly contribution, expected CAGR and years to 60, and estimates the lumpsum + annuity split.
Salaried employee starts NPS at 30 with 75% equity allocation.
| Section | Deduction | Cap | Regime |
|---|---|---|---|
| 80CCD(1) | Self contribution | Within ₹1.5 L 80C | Old |
| 80CCD(1B) | Additional self contribution | ₹50,000 | Old |
| 80CCD(2) — private | Employer contribution | 10% of salary | Both |
| 80CCD(2) — government | Employer contribution | 14% of salary | Both |
Choosing Tier-2 for tax savings — no 80C benefit on Tier-2.
Auto-choice with default life-cycle fund when equity horizon justifies aggressive.
Ignoring 80CCD(1B) ₹50k — most under-utilised tax deduction in India.
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Use 80CCD(1B) ₹50k in addition to 80C — biggest tax saver most salaried miss.
Corporate NPS (80CCD(2)) works in the new regime — negotiate this in your CTC.
Choose active allocation Scheme E >50% if 15+ years to retirement.
Yes — up to 60% withdrawal at maturity is tax-free. The remaining 40% must buy an annuity; pension income is then taxed at slab.
At least 40% of the corpus must be used to buy an annuity from an IRDAI-approved insurer.
Yes — ₹50,000 additional deduction under Section 80CCD(1B), over and above ₹1.5L in 80C.
Yes — up to 60% withdrawal at maturity is tax-free. The remaining 40% must buy an annuity; pension income is then taxed at slab.
via NPS CalculatorMost Chapter VI-A deductions (80C, 80D, 80E, HRA, LTA) are NOT available in the new regime. Only NPS employer contribution and standard deduction survive.
via Income Tax Calculator FY 2025-26The bonus / variable pay is shown separately since it is typically paid annually, not monthly.
via In-Hand Salary CalculatorFor pure risk cover, always term insurance. Endowment/ULIPs mix insurance with investment and typically deliver poor returns on both.
via Life Insurance CalculatorThis dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.
Taxpex Consultancy. (2026). NPS Calculator — Taxpex. Retrieved from https://taxpex.com/tools/investment/nps-calculator<a href="https://taxpex.com/tools/investment/nps-calculator">NPS Calculator — Taxpex</a> — Taxpex Consultancy