Kotak NPS Calculator

Kotak NPS Calculator Formula

The National Pension Scheme (NPS) is a tax-saving long-term scheme by the Government of India. The NPS Calculator has an easy formula for computing the lump sum amount the investor expects to receive at retirement age. By providing a few basic details, you'll get the results quickly. The Kotak NPS Calculator uses the following formula to calculate the interest:

For example:

Mr. Arjun, a 30-year-old salaried professional, has started investing in a Kotak NPS account. He chooses to invest ₹4,000 every month without fail. Assuming a hypothetical annual return of 10%, Mr. Arjun plans to contribute regularly until the retirement age of 60, giving him 30 years of investment time.

Using the NPS Calculator, here’s how his retirement savings could look:

Estimated Outcomes:

• Total Corpus at Retirement: ₹70.86 lakh
• Lump Sum Withdrawal (60%): ₹42.52 lakh
• Annuity Purchase (40%): ₹28.34 lakh
• Estimated Monthly Pension: ₹14,172

Note: These figures are approximate and for illustrative purposes only.

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

How to Use Kotak NPS Calculator

The Kotak NPS Calculator helps you estimate your total pension wealth, lump sum amount, and monthly pension based on your age, retirement goals, and monthly contributions. It is a user-friendly tool that visualises how your savings could grow over time with consistent investment.

Step-by-Step Guide:

1. Enter Your Current Age 

   Begin by adjusting the slider or input box to set your current age.

2. Set Your Target Retirement Age 

   Select the age at which you plan to retire. The calculator allows flexibility up to 75 years.

3. Input Your Monthly Investment

    Provide the amount you intend to contribute every month to your NPS account. The tool supports a wide contribution range.

4. Choose Expected Return on Investment

    Set the percentage of return you expect from your NPS investments. This is typically based on your asset allocation strategy (equity, debt, etc.).

5. Define the Percentage of Corpus for Annuity Purchase 

   Specify what percentage of your retirement corpus you would like to allocate for buying an annuity. This determines the monthly pension amount.

6. Set Expected Annuity Returns 

   Input the expected rate of return from the annuity provider after retirement. This helps estimate your monthly pension post-retirement.

7. View Retirement Projections

    Once all details are entered, the calculator will instantly display:

   • Total Retirement Corpus
   • Principal Invested and Interest Earned
   • Lump Sum Amount
   • Annuity Value
   • Estimated Monthly Pension

8. Take Action 

   After evaluating your retirement scenario, you can proceed directly to open an NPS account using the dedicated button provided.

Benefits of Kotak NPS Calculator

The Kotak National Pension Scheme (NPS) calculator helps you visualise the return on your retirement pension plan. Here are some benefits of using this calculator.

• Informed Planning: The calculator offers a realistic estimate of the corpus you can build when you retire. It allows you to set practical savings goals and make better investment decisions based on retirement expectations.
• Customised Projections: By changing variables like investment amount, retirement age, or return rate, you can view different outcomes. This flexibility allows you to model multiple scenarios based on changing goals, income, or life circumstances.
• Financial Discipline: Using the calculator encourages you to contribute regularly by showing the long-term benefits of consistent investing. It helps you stay committed to retirement savings by visualising the compounding effect over the years.

Tax Benefits of NPS

You can reduce your tax burden by claiming deductions on the contributions made to your NPS account.

1. Section 80CCD(1): Employee’s Own Contribution

   • All the salaried and self-employed individuals are eligible
   • Deduction up to 10% of salary (or 20% of gross income for self-employed) within the ₹1.5 lakh overall 80CCD(1) limit.

2. Section 80CCD(1B): Additional NPS Deduction

   • Applicable to all the NPS subscribers
   • Additional deduction of ₹50,000, over and above the ₹1.5 lakh limit.

3. Section 80CCD(2): Employer’s Contribution

   • Salaried employees with the employer’s contribution are eligible 
   • Employer’s contribution (up to 10% or 14% of salary) is deductible and not counted within the ₹1.5 lakh limit.

Key Takeaway

The Kotak NPS Calculator is a powerful retirement planning tool that offers clarity, flexibility, and actionable insights. It helps you build a secure future by estimating how regular savings and smart asset allocation can work in your favour.