National Pension Scheme Calculator is an online tool, which allows the individual to calculate the estimated lump-sum and pension amount that they will receive under the NPS scheme.Read more
Get Tax Free Pension For Life
Flexibility to withdraw fund value any time
Guaranteed Tax SavingsUnder Sec 80 C & 10(10D)
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000
Get the best returns & make the most of your Golden years
Investment Per Month
Expected Return on Investment
Percentage of Corpus to be allocated for Purchase of Annuity
Expected returns from the Annuity
As the name suggests, the NPS calculator estimates how much you will receive as a pension when you retire at age 60. This gives you an idea about how much to invest monthly, starting now, to receive a suitable corpus on retirement!
The amount of corpus accumulated by the time of retirement depends on your investment amount and returns generated. A pension scheme gives you a fixed uniform income, for a set number of years after you retire.
You pay a certain amount of premium every month into the pension fund. It earns an annual compound interest, which adds to your fund value.
The annuity scheme of the pension plans is offered with the following investment instruments:
The following is the step by step guide to using NPS calculator:
Firstly, you will need to enter the important details.
Check Also: Annuity Calculator
National Pension Scheme offers retirement benefits to all the organized as well as unorganized sectors. Regulated and administered by the Pension Fund Regulatory and Development Authority(PFRDA), it is a reliable government-backed plan.
Any individual aged between 18 years and 60 years can open the National Pension Scheme Account. An eNPS account can also be opened if you have Pan Card or Aadhar Card.
Let us have a look at some of the benefits under the National Pension Scheme
As National Pension Scheme allows individuals to make systematic investments, liquidity is never an issue. To enjoy liquidity benefits, the subscriber needs to have any of the below-mentioned accounts along with a unique Permanent Retirement Account Number (PRAN).
To attain flexibility of their own choice, NPS holders can choose from the following options
|Income Tax Act 1961||Tax Benefits|
|U/S 80CCD (1)||Under Tier-I investments, tax is deductible within the total ceiling of 1.5 lakh|
|U/S 80CCD 1(B)||Allowed up to Rs.50,000 as deductions towards Tier-I contributions|
|U/S 80CCD (2)||Under Tier-I investments is eligible for deduction up to 14% for central government contributions and up to 10% for the rest|
If withdrawn before 60
If 60 years or older
National Pension Scheme will always be paid in Indian Rupees
Under National Pension Scheme,
We know the benefits of the National Pension Scheme. Now have a look at who can take benefit of this government-backed scheme.
The applicant should not have any pre-existing NPS account
The NPS 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, the NPS calculator also computes the expected monthly pension that you will receive on the basis of the expected returns on the annuity.
The online NPS calculator also computes the amount of total interest earned over the years.
You just need to feed in:
Let us assume, MALINI, who is currently 36 and is expected to retire at 60, is investing Rs.10,000 per month in the NPS scheme. The expected Annuity rate of interest for her NPS fund is 8%.
The NPS Calculator would give her the following result:
|Number of Invested Years||24|
|Amount Invested (sans interest)||Rs.2,880,000|
|Total Amount Invested in NPS||Rs.2,880,000 + Rs.5,773,258.43 = Rs.8,653,258.43|
|Withdrawable Amount on Maturity||Rs.3,461,303.37|
|You may also compare: Saral Pension Yojana|
NPS pension calculator is a specifically designed tool to calculate the estimated pension that you will receive at the time of retirement. The following are the benefits of the NPS calculator.
Here are some of the salient features of the National Pension Scheme Calculator.
Similar to all pension scheme, NPS also use compounding interest to compute returns. Let’s take a look at the national pension scheme calculator formula.
In this equation the amount is denoted as A. The other variables are as follows.
|R||Interest rate per annum|
|N/n||Number of times interest compounds|
Let’s see an example to understand how the NPS calculator calculates the pension.
Let’s assume that you are 34 years and you make a monthly contribution of Rs.3000 towards the NPS scheme. You will need to continue making the contribution towards the account for 26 years more. Assuming the rate of interest expected (ROI) every year is 10%. The following are the details shown by the National Pension Scheme Calculator.
Total Principal Invested = Rs 6. 24 lakh
Lump-sum amount expected at maturity = returns+ principal= Rs. 29.81lakh
Expected Monthly Pension= Rs. 7534
All individuals can use the NPS calculator who is eligible to invest in 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. Also, the applicant will require to fulfill the Know Your Customer (KYC) guidelines in order to invest in NPS.
To secure the financial future, it is important to create a retirement portfolio right from the very beginning. NPS and PPF are both long term savings option which provides income tax benefits. Let’s make a fair comparison of both the options, to understand which is a better option of investment.
|Investment Limit||Minimum-Rs.1,000 per annum Maximum-No upper limit||Minimum-Rs.500 per annum Maximum-Rs.1.5 lakh per annum|
|Investment Type||Hybrid and equity funds||100% debt product|
|Tax Treatment||Almost exempt, exempt, exempt format(EE). Annuity payouts are taxable||Exempt, Exempt, Exempt (EEE)|
|Compulsory Annuity Purchase||Up to 40% of the corpus at the regular exit. 80% of the corpus at the premature exit.||Not applicable|
|Maturity Period||At the time of superannuation or when an individual turns 60 years.||In PPF there is no age limit as such. The PPF matures is 15 years.|
|Tax Benefit||Up to Rs.1.5 lakh under section 80C of the IT Act, Up to 10% of the salary. If self-employed up to 20% of the total income. An exclusive benefit of Rs.50,000 U/S 80CCD (1B) of the IT Act||Up to Rs.1.5 lakh under section 80C of the IT Act.|
|Premature Exit||Possible||After completion of 5 years in specific circumstances.|
|Partial Withdrawals||Limited withdrawals are applicable in case of an emergency.||Allowed after completion of 7 years of the policy.|
|Can NRIs Invest?||Yes||NRI cannot open a new account. Accounts open before becoming an NRI can continue till maturity.|
|Returns||Market Linked||Guaranteed Return|
Even though there is no minimum contribution requirement per annum. It is advised to contribute a minimum of Rs.1000 per annum to ensure a reasonable annuity after retirement.
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