Source: images.financialexpress

Launched in 2015, the Atal Pension Yojana is a government pension scheme. It offers financial security to the individuals working in an unorganised sector after their retirement. This scheme encourages eligible candidates to make monthly contributions and get the accumulated corpus after attaining 60.

Atal Pension Yojana calculator is a digital calculator to help you estimate the monthly payment and expected returns in advance.

[Source]

So, without any delay, let’s take a look at how you can use the Atal Pension Yojana calculator.

The APY or Atal Pension Yojana calculator is an online tool that helps you to estimate the pension and lump sum amount you will receive at 60. In the calculator, you need to put in your age and the pension amount you want, choosing from options like ₹1,000 to ₹5,000. Then, it will inform you how much you need to invest each month, how many years you will have to contribute, and the total of all your monthly investments.

Full Form of APY

APY is an acronym for Atal Pension Yojana, an Indian government pension programme that targets workers in the unorganised sector. Depending on the subscriber's payments, the system offers a guaranteed minimum monthly pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, or Rs. 5,000.

The APY Scheme Calculator uses two values: interest rate and compound frequency. By selecting options in the second box, you can compare offers with compounding periods.

For example, let us look at these offers:

• An annual interest rate of 1%, compounded annually, gives an APY of 1%.

• If the interest rate is 0.5%, compounded daily, the APY is 0.501%.

• With an interest rate of 0.75%, compounded quarterly, the APY is 0.702%.

Remember, the higher the APY, the better the offer. Calculating APY helps you to determine which offer is most profitable.

APY Calculator Formula

The formula used to calculate APY is given below:

APY = (1 + r/n)^n – 1

Here,

• r represents the interest rate.

• n represents the number of times the interest is compounded per year.

Source: npstrust

Firstly, to use the Atal Pension Yojana calculator, determine how much you must pay. Your monthly contribution depends on your starting age of investment and the pension option you choose.

However, to avoid manual errors, you can use the Atal Pension Yojana calculator online. Here are the following steps to use the Atal Pension Yojana calculator to get an estimate:

• Visit this official link of NPS - https://npstrust.org.in/apy-calculator
• Now, select your age, pension, expected return and annuity rate.
• After selecting, you will get your monthly, half-yearly and quarterly contribution based on your pension option. Also, you will get an estimated idea about total corpus and investment over the years.

Remember, this calculator does not consider other applicable charges on this scheme. For more clarity, review the same with the bank from where you are applying.

[Source]

To use the Digit APY calculator, you need to follow the steps mentioned below:

Step 1: Enter your age on the APY calculator.

Step 2: Select your desired monthly pension amount.

Step 3: Choose your desired contribution from monthly, quarterly, and half-yearly. 

Once you enter all the details, the calculator will instantly display the calculated monthly investment, investment duration, and total investment amount.

The table below illustrates the monthly contribution based on your age and the pension you select. Therefore, the premium is lower if you start investing at the age of 18.

After a regular contribution, an applicant is guaranteed to receive a monthly pension after attaining 60. In case of the death of the beneficiary, his/her spouse will get the pension benefits. However, on the demise of both, the appointed nominee will receive this pension amount.

[Source]

If you fail to pay the monthly premium before the due date, here is a list of monthly penalty charges:

• PFRDA charges ₹1 for monthly payments up to ₹100.
• It levies ₹2 for monthly contributions between ₹101 to ₹150.
• ₹5 is charged for premiums ranging from ₹500 to ₹1,000.
• ₹10 is charged for monthly premiums of more than ₹1,000.

[Source]

Take a look at how using an online Atal Pension Yojana calculator can help you in the following ways:

1. Savings in Advance

Using the Atal Pension Yojana calculator gives you a fair idea in advance about how much you need to save to receive a targeted corpus.

2. Saves Time

Being completely online, the calculator gives nearly accurate results without investing much time and energy.

3. Free Usage

Many websites extend the online Atal Pension Yojana return calculator, which is not subject to usage restrictions. Mostly these calculators are free to use. Hence, you can access this calculator as per your requirement.

4. Instant Results

After inputting all necessary information, the calculator promptly generates results, showing the monthly contribution amount necessary to reach the selected pension objective.

5. Customisation

Individuals can enter their preferred pension sum, entry age, contribution frequency, and desired pension start age. This customisation lets users align the calculations with their unique preferences and aspirations.

Individuals who meet the following criteria can invest in Atal Pension Yojana:

• The individual must be an Indian citizen between 18 to 40 years.

• They can contribute for at least 20 years.

• The individual must have an Aadhaar Number and a mobile number.

• They should have a valid bank account.

• If they are part of the Swavalamban Yojana, they will be automatically moved to the Atal Pension Yojana scheme.

There are two options available for investing in APY, which are as follows:

Invest in APY Online

To invest in APY online, follow the steps mentioned below:

Step 1: Open your APY account online through the net banking facility.

Step 2: Log in to your net banking account.

Step 3: Look for APY on the dashboard.

Step 4: Follow the instructions to register for the scheme.

Step 5: Choose the auto-debit option for easy contributions.

Step 6: Ensure your account has sufficient balance for monthly deductions.

Invest in APY Offline

To invest in APY offline, follow the steps mentioned below:

Step 1: Visit your bank or post office where you have a savings account.

Step 2: Request the Atal Pension Yojana form.

Step 3: Fill in all the required details accurately.

Step 4: Attach a photocopy of your Aadhaar card for identification.

Step 5: Submit the form to the bank or post office.

Step 6: Wait until your application is processed.

Once approved, you will receive a confirmation message on your registered mobile number.

Thus, this comprehensive guide on the Atal Pension Yojana calculator will help you estimate how much you need to invest to receive a satisfactory return. It is available across 258 APY service providers, including banks and post offices.