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NPS Calculator

Investment per month

Enter Value between 500 and 1.5 Lakhs
500 1.5 Lakhs

Your age (Years)

Enter Value between 18 and 60
18 60

Expected return (P.A)

Enter Value between 8 and 15
%
8 15
Principal Amount
16,00,000
Interest Amount
₹ 9,57,568
Total Amount
₹25,57,568
Annuity Investment
₹25,57,568

NPS Calculator: Calculate National Pension Scheme Returns Online

What is an NPS calculator?

national pension scheme calculator

What is an NPS calculator?

An NPS calculator allows a potential investor in the National Pension Scheme to determine:

  • Provisional lump sum
  • Pension amount per month
  • Annuity
  • Expected ROI

However, note that an NPS calculator shows you an approximate amount and not an exact figure.

Factors to Understand for NPS Pension Calculator

Before giving you the exact formula that the NPS uses, these terms will help clarify what that formula explains.

Date of Birth

Date of Birth

You will need to enter your date of birth to calculate the number of years available to contribute. For example, if your date of birth is 28th February 1994, you have approximately 33 years until you reach 60 and contribute.

Expected Return on Investment

Expected Return on Investment

Expected return on investment is the percentage of returns you wish to earn. The investment in annuities will be done based on the percentage you desire to make.

Percentage of the Annuity to Purchase

Percentage of the Annuity to Purchase

Once your corpus matures at 60 years of age, a fraction of the sum will be reinvested to provide you with a monthly annuity. You can reinvest a percentage less than 40%. However, in case you choose to exit the scheme, you have to reinvest 80% in annuities.

Investment Sum

Investment Sum

Investment sum refers to the monthly contribution that you intend to make.

Expected Annuity Rate

Expected Annuity Rate

The expected annuity rate is the percentage you expect to earn monthly. Based on these terms, we can explain how this pension is calculated.

How does the NPS Calculator work?

how do nps calculator work

How does the NPS Calculator work?

As mentioned above, the NPS calculator works based on compound interest. The formula to calculate National Pension Scheme is given below:

A=P(1+r/n)nt

As the traditional calculation in compound interest goes, the principal is multiplied by the overall rate divided by time.

Where,

  • A - Amount on maturation
  • P - Principal sum
  • r - Expected rate of interest per annum
  • t - Total tenure

Example of NPS Calculation

An example for an NPS calculation is shown below:

Inputs Values (You can change these as per your requirement)
Date of birth 28/02/1994 (27 years as of 2021)
Monthly contribution amount ₹3000
Total years of contribution 33 years (up to 60 years)
Expectation of ROI 14%
I would like to purchase an annuity for % of the total investment 40%
Your expectation of annuity rate 6%
Outputs Values for the Above Inputs
Total investment ₹11,88,000
Total corpus ₹2,54,46,089
Lump sum value (taxable) ₹1,52,67,653
Annuity value ₹1,01,78,436
Expected monthly pension ₹50,892

How to Calculate NPS?

The NPS calculator will help you calculate the monthly amount you will receive after retirement. The pension can be calculated by using the below steps:

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Step 1

Choose the investment amount you need to invest per month.

Step 2

Then enter your age in a check box or use the slider to choose the age.

Step 3

Atlast, choose your expected returns and know your NPS returns instantlty

Advantages of using NPS Calculator

advantages of nps calculator

Advantages of using NPS Calculator

There are plenty of NPS calculator benefits. Some of them are:

  • No mistakes while trying to work out how much you will get every month after retirement
  • Additionally, it helps you undertake long-term financial planning
  • You will be able to assess the approximate earnings per month
  • You have a clear idea of the amount of investment you need to make

FAQs Related to NPS Calculator