ICICI NPS Calculator

What is the ICICI NPS Calculator?

ICICI's National Pension Scheme Calculator offers a simple way to project your retirement savings based on your monthly or annual contributions. Providing a clear estimate of your potential corpus at retirement enables better financial foresight and helps you align your investments with your future income needs and retirement goals.

The NPS calculator from ICICI Bank is simple and convenient to use. To determine the potential maturity value of a retirement investment plan, you are required to input a few basic details related to your NPS account and contribution preferences.

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 ICICI Bank NPS Calculator

Using the ICICI Bank NPS calculator is simple and takes just a few steps. By entering basic personal, income, and investment details, you can quickly estimate your retirement corpus and assess whether your current savings strategy meets your future goals. Here's how to get started:

Step-by-Step Guide:

1. Enter Your Personal Details

   Start by providing your current age and your expected retirement age. This helps determine the investment duration.

2. Fill in Income Information

   Enter your current monthly income and your annual basic salary to set a base for calculating your retirement corpus needs.

3. Input Savings Data

   Add your current savings towards retirement and the amount you are contributing monthly. This shows how much you're already preparing for the future.

4. Specify Expense Details

   Enter your current monthly expenses and estimate how much these expenses might reduce after retirement.

5. Review the Output

   Based on the information entered, the calculator will show:

   • Your estimated monthly expenses post-retirement
   • The inflation-adjusted expected monthly expenses
   • Any potential shortfall in your retirement corpus

Working of NPS Calculator - ICICI

This formula helps compute the maturity value based on your contributions and projected returns for the NPS account.

Illustration of Calculation from NPS Calculator – ICICI Bank

Let’s understand the use of the ICICI NPS calculator with an example:

Suppose you start investing in the ICICI National Pension Scheme at age 32.

• Monthly Contribution: ₹7,000
• Expected Rate of Return: 9% per annum
• Maturity Age: 60 years
• Investment Duration: 28 years

ICICI NPS Returns Explained:

Your total investment would be: ₹7,000 × 12 months × 28 years = ₹23.52 lakhs

Now, applying the compound interest formula:
A = P × (1 + r)^ⁿ

Where P = ₹23.52 lakhs, r = 0.09 (9%), and n = 28

You would accumulate approximately ₹1.02 crores at the age of 60.
Here, the interest earned is nearly ₹78.5 lakhs.

As per NPS guidelines, at least 40% of the corpus (₹40.8 lakhs) will be used to purchase an annuity, ensuring regular monthly pension post-retirement. The remaining amount (₹61.2 lakhs) can be withdrawn as a lump sum or used further, based on your financial planning.

Benefits of NPS Calculator – ICICI Bank

Using the NPS calculator by ICICI Bank helps you make retirement planning more manageable and precise: 

• Estimate Retirement Income: Estimate your future pension by inputting your investment preferences and return expectations.
• Make Informed Investment Choices: Adjust variables such as investment period or contribution amount, and see how they affect your retirement corpus. 
• Simplifies Retirement Planning: The calculator helps structure your approach by showing potential long-term outcomes. 
• Personalised Results: You can enter your age, investment amount, and return expectations to get results tailored to your financial plan.

Tax Benefit under NPS

The National Pension System (NPS) is not only a retirement savings tool but also a smart way to save on taxes. There are three key sections under the Income Tax Act that offer deductions for NPS contributions.

1. Section 80CCD(1)

   This section allows a deduction for your own contribution to NPS.

   Applicable to: Salaried and self-employed individuals

   Tax Benefit and Cap:

   • Deduction up to 10% of Basic Salary + Dearness Allowance for salaried individuals
   • Deduction up to 20% of gross income for self-employed individuals
   • Maximum deduction allowed: ₹1.5 lakhs (as part of the Section 80CCD(1) limit)

   Example:

   • Geeta is a salaried employee earning ₹15,00,000 (basic + DA) per year.
   • 10% of ₹15,00,000 = ₹1,50,000
   • She can claim a deduction of ₹1.5 lakhs under this section.

   Note: This section falls within the overall Section 80CCD(1) limit of ₹1.5 lakhs. If Geeta has already claimed deductions through PF, LIC, or PPF, she must plan accordingly.

2. Section 80CCD(1B)

   This section offers an additional ₹50,000 deduction exclusively for NPS Tier-I contributions.

   Applicable to: All individuals investing in NPS Tier-I

   Tax Benefit and Cap:

   • Additional deduction of ₹50,000 allowed over and above Section 80CCD(1)
   • This section is exclusively for NPS Tier-I contributions
   • Helps boost tax savings beyond the standard 80C limit

   Example:

   • Geeta has already claimed ₹1.5 lakhs under Section 80CCD(1).
   • She contributes an extra ₹50,000 to her NPS Tier-I account.
   • This extra amount is deductible under Section 80CCD(1B), helping her save more tax.

   Note: This ₹50,000 deduction is separate and exclusive, making it a good option for people who’ve already maxed out their 80C limit.

3. Section 80CCD(2)

   This section allows a deduction on the contribution made by your employer to your NPS account.

   Applicable to: Salaried individuals whose employer contributes to NPS

   Tax Benefit and Cap:

   • Old tax regime: Up to 10% of Basic + DA
   • New tax regime: Up to 14% of Basic + DA
   • This benefit is not part of Section 80CCD(1) or Section 80CCD(1B) and is an additional tax-saving opportunity

   Example:

   • Geeta’s employer contributes ₹1,00,000 to her NPS account (as 10% of her basic + DA).
   • This entire ₹1,00,000 is deductible under 80CCD(2), helping reduce her taxable salary.

   Note: Only the employer’s contribution qualifies under this section. It’s an extra deduction beyond the ₹2 lakh personal limit (80CCD(1) + 80CCD(1B)).

Summing Up

The ICICI NPS calculator makes retirement planning simpler and precise. By projecting your future corpus and expenses, you build a sustainable strategy aligned with your long-term financial needs. With instant, accurate results and tax-saving insights, it’s an essential tool for every retirement investor.