New Tax Regime 2024–25
NPS Tax-Alpha
Calculator
How much EXTRA wealth does your employer's NPS contribution actually build?
Sec 80CCD(2)
Employer NPS up to 14% of Basic — tax-free under New Regime
Tax Alpha
Tax saved today → invested in NPS → compounds for decades
XIRR Boost
Effective CAGR of NPS is higher than 12% because of tax savings
⚙ Your Inputs
Total Cost to Company
Typically 40–60%
Max 14% for new regime benefit
Max 75% allowed up to age 50
📊 Results Summary
Employer NPS (Year 1)
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Annual contribution to NPS
Tax Saved (Year 1)
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Immediate cash benefit
NPS Corpus at Retirement
—
If invested via NPS
Corpus Without Tax Benefit
—
If same amount in taxed instrument
🚀 NPS Tax Alpha — Extra Wealth Created
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Extra corpus because of the tax shield compounding over time
📋 Year-by-Year Projection
| Year | Age | CTC (₹) | Emp NPS (₹) | Tax Saved (₹) | NPS Corpus (₹) | NoTax Corpus (₹) | Alpha (₹) |
|---|---|---|---|---|---|---|---|
| TOTAL AT RETIREMENT | — | — | — | ||||
📐 How Alpha CAGR is Calculated
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NPS Effective CAGR = The CAGR that maps total invested contributions to the final NPS corpus. Since tax-saving means your effective "cost" of investing is lower (govt shares part of it), the CAGR on your OUT-OF-POCKET cost is significantly higher.
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Without-Tax CAGR = If the same gross contribution was made but without the tax shield — i.e., after paying tax on it first — the investable amount is lower, so the final corpus is lower.
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Alpha = NPS Corpus − Without-Tax Corpus. This is pure wealth created by structuring salary through NPS under 80CCD(2).
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80CCD(2) Key Rule: Under the New Tax Regime, Employer's NPS contribution up to 14% of (Basic + DA) is fully deductible — this is the ONLY major deduction available in the new regime for salaried employees.
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