NPS Calculator

Plan your monthly pension amount for your retirement years

All fields are mandatory *

Please enter amount between 1,000/- to 1,00,000/-
Years Please enter age between 18 to 60 years
% Please enter expected returns between 5% to 15%
% Please enter annuity allocation at age 60 between 40% to 100%
% Please enter expected annuity return between 4% to 10%

Monthly Pension

Monthly Pension
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Total Amount Invested 0
Total Corpus at age 60 0
Allocated to Annuity 0
Lumpsum Payout 0
National Pension Scheme Calculator
While the NPS (National pension Scheme) is an excellent investment avenue to secure your retirement and avail tax benefits, if you are a first-time investor, you may find it challenging to determine how much to invest and what are the expected returns at maturity. To calculate this, you can use the NPS calculator.

What is NPS Calculator?

NPS calculator is an online tool that lets you compute the provisional lump sum amount and the pension you can expect to receive at the end of the investment duration based on the contributions you make and the tenure of investment.

It is an excellent tool to get an idea of how much you must invest to achieve your financial goal. The more the accumulated amount, the higher will be the eventual benefit. The money you invest in NPS grows with a compounding effect.

Note – The calculator only illustrates an approximate figure of the monthly pension and the lump sum you get, and it does not assure the calculated figure. This is because the amount you invest in NPS is invested in the money-market. The actual returns may vary based on the percentage of allocation of funds in equities and other funds, as well as the performance of the underlying asset.

Who Can Use the NPS Calculator?

Anyone eligible to invest in NPS can use the NPS calculator.

Eligibility criteria to join NPS

  • You must be an Indian citizen (both resident and non-residents are eligible to invest in NPS)
  • You must be aged between 18-65 years as on the date of submitting your application
  • You must comply with the KYC norms as mentioned in the registration form
  • You must have an active savings bank account

Benefits of Using the National Pension Scheme Calculator?

The NPS calculator is an online tool designed specifically to allow the investors in NPS to calculate the approximate pension they can receive post-retirement. It has several benefits, including:

  • NPS calculator gives you quick results. You can save your time from doing manual calculations.
  • You get a clear idea of how much you need to invest to achieve the desired pension amount. Thus, it allows for efficient financial planning.
  • The calculator is easy to use, and it is available online for free. You can use it at any time as you want.
  • The calculator gives you a clear picture of the amount you invest throughout the tenure (accumulation phase), the interest earned, and the total accumulated funds at maturity.

How Does the Pension Fund Calculator Work?

The NPS calculator works like other investment calculators. It shows the pension you can expect to receive at the end of the investment tenure and the amount you can withdraw in lump sum from your NPS account based on the input you provide in the tool. The tool is designed to do the calculations based on the principle of compounding interest growth.

The working of the NPS calculator is simple. Most calculators would require you to enter the following details:

  • Investment type

    - How frequently you want to contribute towards your NPS account if you wish to invest monthly or yearly
  • The investment amount

    - How much you want to contribute to your NPS account
  • Investor’s age

    - You must enter your current age, which should be at least 18 years or more. This helps fund managers allocate the funds
  • Withdrawal amount

    - The percentage of the accumulated funds you wish to withdraw from the NPS account when you attain the retirement age

Based on the above details you provide; the calculator calculates the following:
  • Total amount invested
  • The investment tenure
  • The monthly pension amount you receive post-retirement

How to Use the National Pension Scheme Calculator?

Now that you are aware of how the calculator works, it is paramount to understand how you can use it. Typically, the NPS calculator has two functions, 'for retirement goal' and 'for investment goal.' Here is a step-by-step guide to using the different purposes of the calculator.

You wish to know how much to contribute to your NPS account to get the desired funds for achieving a goal
  • Choose 'for investment amount' option
  • Enter the amount you expect to earn from your investment to achieve your financial goal
  • Enter your current age
  • Click the 'calculate' button

Based on the values you enter in the above fields, the NPS calculator will tell you the amount you must contribute towards your NPS account every month/year to get the desired funds at retirement.

You wish to invest a fixed sum every month/year and know the final amount you will get at the end of investment tenure.
  • Choose the 'for retirement goal' option
  • Enter the amount you want to contribute towards your NPS account every month/year
  • Enter your current age
  • Click on the calculate button

The NPS calculator will immediately showcase the final corpus value that you can expect to get when you retire.

What are the minimum and maximum contribution amount towards the NPS account?

When you subscribe to NPS, you must make an initial contribution of Rs. 500 at the time of registration for NPS Tier – I account, and subsequently, you must contribute a minimum of Rs. 1000 in a financial year to keep your account active. However, there is no maximum limit on the contributions; you can decide the frequency of contributions and the amount as per your convenience.

For the NPS Tier – II account, the minimum contribution is Rs. 250 while opening the account. But, once you open the account, there is no minimum balance required to maintain the NPS account. Also, there are no restrictions on the maximum contributions you can make.

Invest in NPS for a secure retirement

NPS is an excellent investment option that lets you build a significant corpus that you can use post-retirement and be financially independent.

NPS Calculator FAQs (Frequently Asked Questions)

What is the Current Interest Rate of NPS?

NPS helps individuals to invest periodically towards building their retirement corpus through their working life. The savings made are pooled in to a pension fund which are invested by pension fund managers as per the approved investment guidelines in to the diversified portfolios comprising of Government Bonds, Corporate Debentures and Shares. These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.

On maturity the subscriber is required to use part of the accumulated pension wealth to purchase a life annuity from a PFRDA empaneled Life Insurance Company. Rate of annuity realized by the subscriber will be dependent on interest scenario at the time of purchase of annuity.

Is it Possible to Make Early Withdrawal from the Pension Plan?

There are various types of Pension plans – EPS, NPS, Pension plans offered by Life Insurance companies and Mutual Fund companies etc. So early withdrawal rules differs for every type of pension plan.

Under NPS, early withdrawal is allowed in two ways. Firstly in case of certain emergencies subscriber is allowed to withdraw 25% of his contribution as a partial withdrawal. Subscriber can make maximum three such withdrawals in his entire lifetime. Secondly subscriber is allowed to take pre mature exit from NPS which is allowed 10 years after opening the account. But in case of pre mature exit, he needs to invest minimum 80% of pension wealth to buy annuity and only 20% maximum he can withdraw as lumpsum.

What are the Tax Benefits Under NPS?

The contribution made towards the National Pension Scheme (NPS) is eligible for a tax deduction up to Rs. 1.5 Lakh under Section 80C and 80CCD(1). Furthermore, under Section 80CCD(1B), individuals can claim a tax deduction of Rs. 50,000.

What is Pension Plan?

A pension plan is a retirement plan that allows an individual to accumulate a corpus for life after retirement. An individual can choose from a variety of pension plans based on his/her requirements.

What is Annuity?

An annuity plan provides a policyholder with steady revenue once he/she retires. With the help of an annuity policy, an individual can plan his/her finances for life after retirement. The pay-out can be done on monthly, quarterly, six-monthly, or annual frequencies.

DisclaimerThe information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.