The National Pension System or NPS is a scheme that has been launched to introduce a degree of financial stability for Indian citizens after they have retired.  Earlier, it was known as the national pension scheme.  Any resident of India who is between the age of 18 to 60 years is eligible to build up a pension corpus. Anybody above the age of 60 is eligible to use the amount accumulated in the pension corpus. 

The National Pension System is an asset after retirement. You will require an NPS calculator to know how much the total amount in the pension corpus amounts to. Since most people in India have private jobs with little security, they need a national pension scheme calculator. Pension schemes in the country earn sound returns. 

Eligibility To Use The NPS Calculator 

All individuals who are eligible to invest in the National Pension Scheme can use the NPS calculator. According to the NPS rule, all Indian citizens over the age of 18 years but less than 60 years are eligible to invest in the pension scheme. Also, applicants have  to abide by the Know-Your-Customer (KYC) guidelines to begin investing in the NPS scheme. 

Benefits of Using The National Pension Scheme Calculator 

The benefits of using the National Pension Scheme Calculator are as follows: 

  • No more manual calculations 
  • It gives the correct results every time 
  • You will know how much your pension amount will be 
  • It will assist you in future planning 
  • One-stop online calculation 

How Can An NPS Calculator Help You? 

These are the ways in which an NPS pension calculator will assist you

  • It provides you with the amount of money which you are authorized to have in the future. The pension amount is an investment and not a liability. Using an NPS calculator online is essential to determine the total investment.  
  • No individual can withdraw the entire amount post retirement under the existing legislature. 40% worth of the total sum must be invested in annuities while the  remaining 60% is subject to taxation too. All these figures will be revealed in detail once you start using the NPS Calculator.
  • The calculator never yields wrong results. Computing the pension amounts manually is very cumbersome. The NPS calculator will automate the entire process and make it easy to compute the pension amount.
  • Finally, you can now determine the taxation regime on pension funds, the total amount you will obtain every month end, and several other details via the calculator.

How To Compute Pension Amounts Using The Calculator 

NPS uses compounding interest to calculate returns. The formula used by the National Pension Scheme Calculator is A = P (1 + r/n) ^ nt

The Amount is A and the other variables are as follows:

P is the principal sum 

          R/r is the rate of interest per annum 

          N/n is the number of times interest compounds

          T/t is the total tenure

Let us take an example. 

If you are 35 years old and your monthly contribution is Rs. 4000, you will have to add to the pension account for 25 more years. 

Assuming that the rate of interest or ROI is expected at 10% every year, the following are the details disclosed by the National Pension Scheme Calculator: 

Total investment: Rs. 12,00,000

Interest earned: Rs. 41,07,334

Maturity amount: Rs. 53,07,334

Minimum annuity investment: Rs. 21,22,934

How To Use The NPS Calculator?

NPS calculators are very easy to use and offer accurate estimates. This online tool is very easy to use and can be used any number of times for free.

Here is a step by step guide on how to use the NPS calculator:

  • First, enter your current age or the age at which you begin to make contributions towards NPS. 
  • Then, input your retirement age, which is usually 60 years. 
  • The total investing period will be automatically tabulated by the tool based on the age at which you start doing the NPS contribution. 
  • For example, if your current age is entered as 37 and the retirement age is 60, then the total investing period will be 23 years.
  • Enter your monthly investment towards your pension. 
  • The interest is computed on a monthly compounding basis. 
  • Enter the expected rate of interest or return on your NPS investment
  • Finally, you will get a summary of your NPS investment with details such as principal amount, interest earned, pension wealth, and total tax saved. 
  • Input the percentage (%) of pension wealth to be invested in annuity and the rate of interest on annuity in the tool. 
  • You will get a summary of the lump sum amount withdrawn, the pension amount invested, and the pension per month post retirement.


All your investment details are shown by the NPS calculator. The calculator makes it easy to compute the pension amount. It yields accurate results and is a great tool to use.

FAQS National Pension Scheme Calculator

1:How will an NPS pension be computed? 

You have to input the values for monthly contributions made, the annual expected rate of return on investment, percentage of corpus for which annuity is bought, and the expected percentage return on annuity. 

2:Does NPS give lifetime pension?

NPS subscribers opting for this annuity option receive a monthly pension during their lifetime. After the subscriber’s death, the spouse will get the pension for their lifetime.

3:What is the maturity period of NPS?

The maturity period of NPS is 60 years. You must contribute to your NPS account till you reach 60 years. 

4:Is NPS monthly or yearly?

Both private and public employees must make contributions to the NPS scheme. This contribution is generally made monthly  for the date of the subscription until the age is 60 years.