Enter Your Details
Your Retirement Plan
Contribution Breakdown
| Item | Amount |
|---|---|
| Your Monthly Contribution | - |
| Employer Contribution | - |
| Total Monthly | - |
| Annual Contribution | - |
Pension Corpus Growth Forecast
Projected corpus and inflation-adjusted monthly pension at 5-year intervals - based on your inputs above.
| Age | Years Contributing | Corpus (₹) | Monthly Pension (Real) |
|---|---|---|---|
| Enter details above to generate forecast. | |||
How It Works
Decide how much to contribute monthly. A common rule of thumb is 10-15% of your income. The calculator computes monthly growth using the NPS compounding formula.
Set your current and retirement ages. NPS grows every month through compounding. You also enjoy annual tax deductions under Section 80CCD up to ₹1.5 lakh/year.
At retirement, your corpus is annuitised for a monthly pension for life. The calculator shows both nominal (future rupees) and real (today's purchasing power) pension values.
Understanding eNPS / NPS
What Is eNPS?
eNPS (Employees' National Pension System) is a voluntary, defined-contribution retirement savings scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA) in India. It is the online NPS platform that allows individuals to open accounts, make contributions, and manage their pension investments without physically visiting a Point of Presence (PoP). It is designed for both salaried employees and the unorganized sector - self-employed professionals, farmers, gig workers, and small business owners.
How the Corpus Is Calculated
NPS uses monthly compounding. Each month, your total contribution (yours + employer's) is added to the corpus, which then earns interest:
corpus = (corpus + totalMonthlyContrib) × (1 + monthlyRate) monthlyRate = annualReturnRate / 12 / 100
This loop runs for every month from today until your chosen retirement age. Even small additional amounts compounded over 25-30 years can lead to very large corpus values - which is why starting early matters enormously in NPS.
Nominal vs. Real Pension
Nominal pension is your monthly pension in future rupees - what the annuity provider will actually pay. Real pension is the inflation-adjusted equivalent in today's purchasing power: Real Pension = Nominal Pension ÷ (1 + Inflation%)^Years. This is the more meaningful figure for planning because ₹10,000/month in 30 years may buy considerably less than ₹10,000/month today.
Tax Benefits Under Section 80CCD
NPS contributions get three layers of tax benefit: (1) Under 80CCD(1), employee contributions up to 10% of basic salary (or ₹1.5 lakh for self-employed) are deductible. (2) Under 80CCD(1B), an additional ₹50,000 deduction is available - exclusive to NPS. (3) Under 80CCD(2), employer contributions up to 10% of salary are deductible (not applicable to self-employed). This calculator conservatively applies the ₹1.5 lakh cap at a 30% tax slab for indicative purposes - your actual savings will depend on your specific tax situation.
How Much Should You Contribute?
A common starting point is 10-15% of monthly income. For a ₹50,000/month earner, that is ₹5,000-₹7,500/month. Use the calculator to experiment: increasing your contribution by just ₹500/month at age 30 can add several lakhs to your retirement corpus by age 60. Start with a comfortable amount and aim to increase it by 5-10% annually as your income grows.
Frequently Asked Questions
What is ENPS (eNPS) or NPS?
eNPS is the online platform of India's National Pension System, administered by PFRDA. It allows individuals to open NPS accounts, make contributions, and manage pension funds online. It covers salaried employees (through corporate NPS) and the unorganized sector - self-employed, farmers, gig workers, and small business owners.
Who is eligible for eNPS?
Any Indian resident aged 18-65 years who is not already covered by a statutory pension scheme (like EPF) can open an NPS account. NRIs are also eligible. You can open an account at a designated Point of Presence (PoP) bank, a post office, or directly online via the eNPS portal.
What are the NPS contribution limits?
There is no upper cap on NPS contributions, but tax deduction is capped. Under Sec 80CCD(1), up to ₹1.5 lakh per year is deductible. An additional ₹50,000 under 80CCD(1B) is also available. Employer contributions up to 10% of salary are deductible under 80CCD(2). You can contribute as little as ₹100/month with no fixed monthly obligation.
How is the monthly pension calculated from NPS?
At retirement, you must use at least 40% of your corpus to purchase an annuity from a PFRDA-approved life insurance company. The annuity rate (typically 4-6% per year) determines your monthly pension. The remaining 60% can be withdrawn as a lump sum (tax-free). This calculator assumes 100% annuitisation for simplicity - your actual pension will be on 40%+ of your corpus.
What are the tax benefits under Section 80CCD?
Three deductions are available: Sec 80CCD(1) - up to ₹1.5 lakh for own contributions; Sec 80CCD(1B) - additional ₹50,000 exclusively for NPS; Sec 80CCD(2) - employer contributions up to 10% of salary (for corporate NPS). At the 30% tax slab, maximising all three can save over ₹60,000/year in taxes.
Can I withdraw from NPS before retirement?
Partial withdrawal is allowed after 3 years of contribution for specific purposes - children's education, marriage, house purchase, medical treatment of critical illness, or disability. You can withdraw up to 25% of your own contributions. Three partial withdrawals are allowed during the account's tenure. Full withdrawal before age 60 is treated as premature exit and requires 80% annuitisation.
What happens if I stop contributing?
NPS accounts do not close if you stop contributing - the corpus continues to grow at market returns. However, the account becomes "frozen" (no new investments) if contributions fall below the annual minimum (₹1,000 for Tier-I). You can reactivate by paying a penalty of ₹100 plus the minimum contribution shortfall. Your existing corpus is not affected.
Is this ENPS calculator free?
Yes - completely free. No signup, no email, no account required. SmallHRTools is built to give small business owners, HR teams, and individuals access to professional-grade financial planning tools without enterprise pricing.