NPS Calculator 2023

What is NPS Calculator?  – An Overview

The National Pension Scheme Calculator helps an investor estimate the wealth gained and maturity amount of the whole investment, i.e., how much they will receive as a pension when they retire at age 60 and the monthly pension. 

More Information about NPS Calculator: 

• The best NPS return calculator gives you an idea about how much to invest monthly to receive a suitable corpus on retirement. 

• With an option to select between debt and equity, the National Pension Scheme calculator lets you check the expected retirement corpus based on your risk appetite. 

• Thus, the NPS calculator is convenient for making an informed NPS investment. 

Features of NPS Calculator

Here are some of the salient features of the National Pension Scheme Calculator.

• NPS calculator can be used online in a very easy and simple way.

• NPS plan calculator helps calculate the amount of pension you will receive.

• NPS calculator also shows the amount invested by you during the accumulation phase, NPS interest rates, returns earned, and the total amount of funds generated at maturity.

• The NPS calculator makes the computation of maturity amount simpler.

• The investors of NPS scheme can check the tax exemptions available under Section 80C of the IT Act, 1961.

Who can use the NPS Calculator?

All individuals who wish to invest in the National Pension Scheme or are planning to make retirement investments can use the NPS plan calculator. 

Eligibility Criteria of the National Pension Scheme: 

• As per the NPS rule, all Indian citizens between the age group of 18-60 years are eligible to invest in the pension scheme. 

• The Government of India increased the number of individuals allowed to join the NPS scheme for senior citizens to 70 years of age (earlier 65 years of age was allowed to join).

• Also, the applicant will be required to fulfill the Know Your Customer (KYC) guidelines to invest in NPS.

How to Use NPS Calculator?

Following is the step-by-step guide to use the NPS pension calculator:

Step 1: Fill in your "Date of Birth (DOB)" in the required box.

Based on your DOB, the NPS Pension Plan calculator will compute the number of years you will need to contribute to the scheme in order to accumulate the desired amount after retirement.

Step 2: Fill in the "Investment Amount" you wish to invest per month in the NPS calculator.

Step 3: Select the "Expected Return on Investment (ROI)."

Step 4: Select the "Percentage of Annuity" you want to Purchase at the time of maturity of the NPS scheme. 

Annuity percentage is the ratio of the pension fund that you would like to reinvest to buy a monthly annuity after the NPS plan maturity from the Annuity Service Provider (ASP).

Step 5: Fill in the "Expected Annuity Rate."

This is the amount of annuity that you want to receive from your pension.

Step 6:  Once you enter all the details, the National Pension Scheme calculator will simultaneously calculate the estimated lump-sum amount and pension amount you will receive at the time of maturity.

Note: It is important to note that the percentage of accumulated funds reinvested to purchase an annuity cannot be less than 40%. However, in case of the scheme's premature exit, i.e., before 60 years of age, the minimum percentage of funds to be reinvested to purchase an annuity should be 80%.

Benefits of the NPS Calculator

Following are the benefits of the online NPS pension plan calculator:

• It saves time, as you do not need to do any manual calculations.

• You receive the right result every time.

• You can have a clear knowledge of how much investment you need to make in order to achieve the desired pension amount. 

• Moreover, it also helps you to do financial planning more efficiently.

• With the help of a one-stop NPS pension plan calculator, you can know the estimated amount you will receive as a pension after retirement.

How does the NPS Calculator Work?

The National Pension Scheme Calculator also shows the summary of the pension account at the time of retirement, i.e., the total amount contributed by you during the accumulation phase and the amount generated on maturity. Moreover, it also computes the expected monthly pension that you will receive on the basis of the expected returns on the annuity.

NPS Online calculator helps compute the amount of total earned interest over the years, and you are required to enter the following details while calculating NPS returns: 

• Current age 

• Retirement age 

• The amount you are investing monthly 

• Estimated annuity interest rate, currently at 6%

Secure Your Retirement Today

Start Investing ₹6,000/month

Get Pension ₹60,000/month+

Including Life Cover

View Plan

+Standard T&A Applied

Formula for Calculating NPS Pension Amounts 

Like all pension schemes, the NPS calculator also uses compounding interest to compute returns. Let us take a look at the National Pension Scheme calculator formula.

Let us understand the NPS pension calculation with the help of an example: 

Ms. Malini is a 36-year-old government employee who is expected to retire at 60. She is investing Rs. 10,000 per month in the National Pension scheme. The expected Annuity rate of interest for her NPS fund is 8%.

The status of Malini's Pension account at the time of retirement, as generated by the NPS calculator, will be as follows: 

Wrapping It Up!

In conclusion, the NPS calculator 2023 is a powerful tool that helps individuals plan for their retirement by providing them with an estimate of the pension they can expect to receive based on their current age, income, and contributions. This tool allows people to make informed decisions about their future and take the necessary steps to secure a comfortable retirement. With the help of this NPS calculator, individuals can start saving early and adjust their contributions to achieve their desired retirement goals. The National Pension Scheme calculator 2023 is a vital resource that can benefit anyone who wants to plan for their retirement, and it is highly recommended for use by all.

NPS (National Pension Scheme) Calculator – FAQs