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Calculate retirement corpus, monthly pension & 80CCD tax benefits
Enter your NPS details and click Calculate
The National Pension System (NPS) is a voluntary, government-backed retirement savings scheme regulated by PFRDA. It allows individuals aged 18-70 to contribute regularly towards building a retirement corpus. NPS invests in a mix of equity, corporate bonds, and government securities based on your chosen allocation. At retirement (age 60), you can withdraw up to 60% of the corpus as a tax-free lump sum, while a minimum of 40% must be used to purchase an annuity plan that provides monthly pension income.
NPS has two tiers: Tier I is a mandatory pension account with tax benefits and restrictions on withdrawal. Tier II is a voluntary savings account with no tax benefits (except for government employees) but complete withdrawal flexibility. For retirement planning, Tier I is the primary account due to its additional tax deductions under Section 80CCD.
NPS offers one of the most attractive tax benefits in India. Under Section 80CCD(1), employee contributions up to 10% of salary (Basic + DA) are deductible within the Rs 1.5 lakh Section 80C limit. The real advantage comes from Section 80CCD(1B), which provides an additional Rs 50,000 deduction exclusively for NPS — over and above the 80C limit. This means you can get up to Rs 2 lakh in tax deductions through NPS alone. At the 30% tax bracket, this saves Rs 15,600 per year in taxes.
For employer contributions, Section 80CCD(2) allows deduction of up to 14% of salary for government employees and 10% for private sector — and this benefit is available even under the New Tax Regime. The 60% lump sum withdrawal at retirement is completely tax-free.
All three are long-term retirement/savings instruments with tax benefits, but they serve different purposes. EPF (Employee Provident Fund) is mandatory for salaried employees earning up to Rs 15,000 basic, with 8.25% guaranteed returns and full withdrawal at retirement. PPF is a voluntary savings scheme with 7.1% guaranteed returns and EEE (Exempt-Exempt-Exempt) tax status. NPS offers potentially higher returns (8-12% with equity exposure) and an extra Rs 50,000 tax deduction, but locks 40% into an annuity.
For optimal retirement planning, financial experts recommend using all three: EPF as the base (mandatory, guaranteed), PPF for tax-free guaranteed returns, and NPS for market-linked growth with additional tax benefits. This diversification balances safety, returns, and tax efficiency across your retirement portfolio.
| Feature | JumpTools | NPS Trust | Groww | ClearTax |
|---|---|---|---|---|
| Price | Free | Free | Free | Free (limited) |
| Registration | No signup | No | Required | Required |
| Pension Estimate | Monthly pension calc | Basic | Basic | Basic |
| 80CCD(1B) Tax Benefit | Auto calculated | No | Mention only | Separate tool |
| Annuity Options | Custom rate & % | Basic | Fixed | Fixed |
| Year-by-Year Chart | Interactive chart | No | Basic | No |
| Privacy | 100% client-side | Server-based | Server-based | Server-based |
Project your total corpus at retirement based on monthly contributions and expected returns.
Calculate estimated monthly pension from annuity purchase at retirement.
See the 60% tax-free lump sum and 40% minimum annuity breakdown.
Calculate the extra Rs 50,000 tax deduction available only for NPS investors.
Year-by-year corpus growth from your current age to retirement age.
Pre-computed NPS corpus for all contribution levels at multiple return rates.
Enter Contribution Set your monthly NPS contribution amount (Rs 1,000 to Rs 2,00,000).
Set Age Details Enter your current age and retirement age (default 60).
Configure Returns Set expected return rate and annuity parameters (%, annuity rate).
View Retirement Plan See corpus, lump sum, pension estimate, and tax benefits.
Calculate NPS retirement corpus, tax-free lump sum (60%), monthly pension estimate, and 80CCD(1B) extra Rs 50,000 tax deduction. Customizable annuity rates. 100% client-side.