NPS Calculator
The ICICI Bank’s NPS Calculator makes it easy to calculate your retirement savings and plan a secure future with confidence.
What is the NPS Calculator?


The National Pension System (NPS) can be defined as a government-backed retirement savings plan which helps you build a retirement corpus through regular contributions every month. To better understand your retirement corpus accumulated over time and how much expected amount you can get in the future, you can easily calculate by using a National Pension System Calculator. It is an online tool designed for retirement planning. By using the NPS calculator, you can enter your monthly contributions, expected returns, and tenure to forecast your total retirement corpus. The NPS calculator in India also provides a detailed breakdown of lump sum withdrawals and annuity payouts, helping you make informed decisions. Use the NPS return calculator to plan your post-retirement finances effectively.
How does the NPS Calculator Work?


The NPS calculator estimates your retirement corpus using the formula mentioned here:-
Future Value = P \[ (1 + r/n)^(nt) – 1 \] / (r/n)
Where,
P is your monthly contribution
r is the rate of return
n is the total number of months
t is the number of years until you retire
It then calculates your monthly pension by converting a portion of this corpus into an annuity. For example, if your total corpus is ₹ 1.25 crore and you allocate 60% (i.e., ₹ 75 lakh) for an annuity at an 8% annual rate, your estimated monthly pension will be approximately ₹50,000.
How can an NPS Scheme Calculator Help You?


The NPS calculator online helps you estimate how much money you can save for retirement based on your monthly contributions and expected returns.
When you retire, you cannot withdraw the full amount at once. 40% of the corpus must be used to buy an annuity, which provides regular pension payments. The remaining 60% can be withdrawn as a lumpsum and is completely tax-free. The NPS return calculator helps you estimate your pension and lumpsum amount precisely.
Figuring out your pension manually can be complicated. The NPS calculator lumpsum feature does all the calculations for you, ensuring accuracy without any effort.
An NPS pension calculator helps you understand how much tax you can save on your contributions, making retirement planning easier.
Overall, this automatic tool simplifies complex calculations, helping you plan smarter for retirement.
NPS Calculator FAQs
Does NPS guarantee a specified interest rate similar to traditional bank Fixed Deposits?


No, NPS functions differently, generating returns based on the performance of underlying assets, i.e., equity, debt, and government securities. Consequently, NPS lacks a guaranteed interest rate compared to fixed deposits.
What constitutes the minimum capital commitment at NPS registration?


During NPS Tier 1 account establishment, participants must deposit a minimum of Rs. 500 and thereafter a minimum of Rs. 1000 per year. NPS Tier 2 account holders must commit a minimum of Rs. 1,000 at the time of registration. There is no lower limit on the annual contribution for Tier 2 NPS accounts.
How does the NPS Calculator address tax obligations linked to withdrawals?


Due to varying individual factors influencing tax liability, the NPS Calculator refrains from incorporating particular tax burdens associated with withdrawals. Instead, users should consult respective tax guidelines or seek expert advice.