NPS Calculator 2023

What is an NPS Calculator?

The National Pension Scheme (NPS) calculator assists in estimating the retirement pension by calculating the monthly contribution. It simplifies retirement planning, helping users in determining suitable contributions. The NPS calculator enhances the important aspect of financial foresight for retirement.

By using the calculator, you can get an idea about how much to contribute monthly to obtain a suitable corpus post-retirement.

As the importance of planning for retirement becomes increasingly evident, the popularity of the NPS calculator is growing. The calculator makes your retirement planning easier by helping you determine the amount you need to contribute. Indian citizens between 18 and 60 are eligible to buy the NPS scheme.

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

What are the Features of the NPS Calculator

The NPS Calculator simplifies pension planning with easy online use. It calculates your future pension and simplifies pension amount predictions. It also enhances financial planning with ease. 

Further:

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

• It helps to calculate the amount of pension you will receive.

• The National Pension Scheme Calculator also shows the amount you invested during the accumulation phase, NPS interest rates, returns earned, and the total funds generated at maturity.

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

What are the Advantages of Using the NPS Calculator?

The NPS Calculator offers convenient online usage, effortlessly determining your pension amount. Simplifying maturity computations ensures a seamless experience in planning and forecasting your financial future. 

Further following are the benefits of the online NPS calculator:

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

• 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 National Pension Scheme Calculator, you can know the estimated amount you will receive as a pension after retirement.

• The investors of the NPS scheme can check the tax exemptions available under Section 80C and Section 10.

• Subscribers can get tax benefits under Section 80 CCD (1) within the overall limit of  1.5 lakh under Section 80 CCE.

• Plus, an additional deduction for investments up to Rs. 50,000 in the NPS Tier I account is available under subsection 80CCD (1B).

Who Can Use the NPS Calculator?

As per the NPS rule, all Indian citizens between the ages of 18 and 60 are eligible to invest in the pension scheme. Also, the applicant must fulfil the Know Your Customer (KYC) guidelines to invest in NPS. An increasing number of Indians are subscribing to the NPS. In the financial year 2023 alone, the NPS added 170 lakh subscribers. 

How to Use Policybazaar NPS Calculator?

Start a stress-free retirement journey with Policybazaar's NPS Calculator. In just six easy steps, input your age, monthly investment, and expected returns. Customize your pension allocation preferences. The calculator reveals your future monthly pension, lump sum, and pension wealth. 

Follow these steps:

Step 1: Input your current age in years

Step 2: Specify the amount you are willing to invest in the National Pension Scheme every month

Step 3: Provide the expected rate of return on your investments

Step 4: Decide the percentage of the accumulated corpus that you want to allocate for receiving a pension in the future

Step 5: Enter the expected rate of return for the pension phase

Step 6: The calculator will show you the estimated monthly pension, lump sum amount, and pension wealth

What is the Formula for Calculating the NPS Pension Amount?

The NPS scheme allows subscribers to invest in various pension funds, including Birla Pension Fund, HDFC Pension Fund, LIC Pension Fund, and SBI Pension Fund. The NPS calculator uses compounding interest to compute returns.

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

Mrs. Joshi, a 36-year-old government employee, invests Rs. 10,000 monthly in the National Pension Scheme with a projected 7% interest. Anticipating retirement at 60, she allocates 40% of her corpus for pension, with an expected rate of return of 6%.

The status of Mrs. Joshi’s Pension account at the time of retirement, as generated by the NPS calculator, will be as follows:

Total Investment= ₹28.8 Lacs

Maturity Amount= ₹74.8 Lacs

Lumpsum Amount at the age of 60 Years= ₹44.9 Lacs

Pension Wealth at the age of 60 Years= ₹29.9 Lacs

Monthly Pension= ₹14,965

Key Takeaways

The NPS calculator is a helpful tool that helps you make your retirement plan by estimating the pension you can expect to receive. This tool allows you to make informed decisions about your future and take the necessary steps to secure a comfortable retirement.