Canara NPS Calculator

How to Use the Canara NPS Calculator

Here are the steps to use the NPS Calculator:

• Enter Your Current Age: This helps determine the investment horizon.
• Specify Monthly Investment: Input the amount you intend to contribute monthly.
• Set Expected Return Rate: Provide an anticipated annual return percentage.
• Choose Retirement Age: Indicate the age you plan to retire.
• Select Annuity Purchase Percentage: Decide the portion of the corpus for annuity.
• Input Expected Annuity Rate: Provide the expected annual return from the annuity.

Upon entering the above details, the calculator will show the following results.

• Total Corpus at Retirement: The accumulated amount over the investment period.
• Lump Sum Withdrawal: The amount you can withdraw as a lump sum.
• Annuity Investment: The portion allocated for regular pension income.
• Estimated Monthly Pension: The expected monthly income post-retirement.

NPS Calculator

Your Age

Years

18 Years 59 Years

Enter Your Age

Monthly Investment

₹

₹500 ₹10L

Enter Investment Per Month

Expected Return on Investment

%

5% 15%

Expected Return on Investment

Percentage of Corpus Allocated for Pension

%

40% 100%

Enter Corpus Percentage

Expected Return from Pension

%

5% 15%

Enter Annuity Return

₹0

Your Monthly Pension

View Plans

₹0

Your Monthly Pension

View Plans Your Pension Calculation

Your Pension Calculation

Total Investment

Returns Earned

Maturity Amount

Maturity Amount split (Lumpsum & Pension)

60%

Lumpsum Amount

At the age of 60 Yrs

40%

Pension Wealth

At the age of 60 Yrs

View Plans

Formula For NPS Calculator

The Canara NPS Calculator uses a straightforward formula to estimate the lump sum an investor can expect to receive at retirement. The calculator quickly provides an accurate projection by entering a few basic details about the investment. The formula used is:

Example of NPS Calculation:

Consider Ms. Meera, a 28-year-old working professional who starts investing ₹3,500 monthly in her Canara NPS account. Assuming an annual return rate of 9%, she plans to contribute consistently until she retires at age 60, giving her 32 years of investment.

Using the Canara NPS Calculator, her retirement savings projection would be:

• Total Principal Investment over 32 years: ₹13.44 lakh (approximately)
• Estimated Total Corpus at Retirement: ₹74.15 lakh (approximately)

These estimated maturity amounts include her contributions and the compounded returns earned over time. Starting early and investing regularly, Ms. Meera is securing her financial future. The Canara NPS Calculator helps investors like her plan retirement goals with clarity and confidence.

Benefits of Using the Canara NPS Calculator

The Canara NPS Calculator helps you estimate your NPS maturity amount and the amount of contribution you need to reach that estimation. It also helps you prepare for a financially secure retirement. Here are the key benefits of using the NPS Calculator:

Tax Benefits

NPS contributions are eligible for tax deductions under three specific provisions of the Income Tax Act. Each section offers different benefits, depending on the type and source of contribution.

1. Section 80CCD(1) – Own Contribution

   • Salaried: Deduction up to 10% of salary (Basic + DA)
   • Self-employed: Up to 20% of gross income
   • Falls under the ₹1.5 lakh overall 80CCD(1) limit

   Example: Aman earns ₹5.5 lakh/year (Basic + DA).
   He contributes ₹55,000 to NPS → He can claim full ₹55,000 under this section.

2. Section 80CCD(1B) – Additional Deduction

   • Available to all NPS subscribers
   • Extra deduction up to ₹50,000, over and above the ₹1.5 lakh limit

   Example:Aman maxes out his ₹1.5 lakh under PPF and ELSS.
   He contributes an extra ₹50,000 to NPS, claiming it under Section 80CCD(1B).
   Total tax deduction: ₹2 lakh

3. Section 80CCD(2) – Employer Contribution

   • Applicable only to salaried employees
   • Deduction up to:
   • 10% of salary under the old regime
   • 14% under the new regime
   • Not counted in the ₹1.5 lakh limit

   Example:Aman’s employer contributes ₹1.1 lakh (10% of his ₹11 lakh salary).
   He can claim the entire ₹1.1 lakh under Section 80CCD(2), over and above previous deductions.

Key Takeaway

The Canara NPS Calculator not only helps you visualise your retirement corpus but also lets you tweak variables like monthly contributions and retirement age to suit your goals. Use it regularly to stay on track, adjust your strategy, and build a retirement plan backed by data, clarity, and tax savings.