NPS Calculator – National Pension System Calculator

Investing for future has become really important today and to reduce the burden the of retirement planning the National Pension System (NPS) can be a one of the best go to option for you.

While to know how much returns you can generate till the time of retirement through National Pension System is very important and hence, using a NPS calculator become mandatory for you.

Hence, let’s see how you can use our NPS Pension Calculator properly but before that let’s quickly recap about NPS.

So let’s get started!

National Pension System (NPS)

National Pension System or NPS is introduced in 2004 by the Government of India to encourage the Government employees to plan for their retirement in advance.

While in 2009, the scheme became available for every citizen of India so that now you can start saving some amount every month till you reach the age of 60 years.

After you reach 60 years, you can withdraw some part of the maturity amount as a big lumpsum amount and rest amount which is minimum 40% of maturity amount is used for annuity or to provide the monthly pension.

NPS is controlled by a government body known as Pension Fund Regulatory and Development Authority (PFRDA).

Now you have an idea how the National Pension Scheme works let’s checkout how to use our NPS calculator.

NPS Calculator

NPS Calculator is the best tool designed to help you calculate the National Pension Scheme maturity amount and to better plan your retirement as per that maturity amount.

Our online NPS calculator is not only efficient and easy to use but also helps you in saving you time that you will put to do manual calculations.

How To Use NPS Calculator

To use our NPS pension calculator follow the below simple steps:-

1. Select your current age firstly, as you can invest maximum upto 60 years of age, hence whatever age you will select the compounding will begin from that age till you reach 60 years.
2. Enter how much you wanted to invest in your NPS account every month in “Monthly Contribution Column”
3. Finally, enter how much returns you are expecting from your investment to generate in National Pension System throughout the years.

Results Display

Total Investment: This is the total investment you will do in the NPS throughout the years.

Total Interest Earned: This is the total interest or return you will get on your investment throughout the years.

Total Maturity Amount: Finally, this is the total maturity amount you can expect your NPS account will have for your retirement.

Minimum Annuity Amount for Pension: This is the minimum amount you have to invest from your total corpus of NPS account to receive the pension from this money. Do remember you have to invest minimum 40% of the amount in annuities.

Example Using NPS Return Calculator

To better understand how nps return calculator works let’s just see an example.

Let’s say currently I am 24 years, and I will invest Rs. 10,000 every month and I am expecting around 9% returns from my investment in NPS, because I can take bit risk on my investment and hence will invest in equity part.

Now using our NPS annuity calculator, I got to know that:

• I will invest total ₹43.2 Lakh in 36 years (60-24) as per my current age.
• As per my expected annual return of 9%, the NPS will generate the total interest of ₹2.79 crore.
• Finally, the total maturity amount that I can enjoy will be around ₹3.23 crore including my investment and interest earned on it.
• For annuities, I have to invest minimum ₹1.29 crore from my NPS account so that I can receive the pension every month from this money.

Benefits of using NPS Calculator

• Retirement Planning – The NPS calculator gives you an idea of how much maturity amount you can get if you invest a certain amount every month, that helps you in effective retirement planning.
• Easy To Use – Our calculator simplifies complex calculations so that everyone can easily calculate their investment for retirement.
• Goal Setting – Knowing in advance how much you will get at maturity helps you in adjusting the investment amount as per your goal.
• Time Saving – Being an online nps calculator, not only you can access it easily but it also help you in saving your time that other you may have wasted in manual calculation.
• Disciplined Investing – Seeing how much you can make at the maturity, encourages you to keep investing regularly.
• Impact of Returns – Using the calculator you can compare the final maturity amount based on the returns of your NPS investment and hence you can choose the best possible investment mix in NPS for you like equity, bonds, etc.

Who Can Use This NPS Calculator

Anyone can use our nps pension calculator, with just a basic knowledge. If you are eligible to invest in NPS that you can use our The Honest American’s NPS Calculator without thinking twice.

• Government Employees – If you are a government employee and wanted to check how much amount you can have at the retirement from NPS then this is the best calculator for you.
• Private Sector Employees – If you are in a private sector, then your employer can match the amount you are investing in NPS, hence using our nps calculator becomes mandatory for you to know the maturity amount of your NPS.
• Self Employed or Individuals – If you are a self employed or an individual then our NPS calculator is must as although you don’t get a benefit like the Private or Government employees get where the employer matches their contribution to NPS but still you can make a big wealth corpus from NPS for your retirement if you start investing in it early.

Factors To Consider Before Using NPS Scheme Calculator

• Do note no nps scheme calculator shows you net return after deducting the tax, hence, you should remember that the maturity amount showing to you is not net amount you will take it home.
• Well, a calculator provides you flexibility to choose the expected average annual returns but many times we take unrealistic numbers that are in real life is either impossible or very hard to achieve, hence use realistic expectation.
• To start investing in NPS, you must need to be 18 years and you can invest till you reach 60 and in some cases you can invest till you reach 70 years.
• While investing in National pension system, I highly advice you to invest your maximum amount in equities because in long term returns on equities outperform every other investment instrument.
• The maturity amount you see in this nps calculator is based on what you are investing every month currently, while as you grow in your career you can keep increasing this amount to build a big wealth corpus for your retirement.

Disclaimer: The Honest American provides financial education, investing strategies, & stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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