NPS Calculator

The NPS calculator, also known as the NPS annuity or pension calculator, is an online tool that gives you an estimate of the maturity amount. With this calculator, you could figure out which investment terms best suit your retirement needs. The estimate is based on your contribution and interest rate.

 

The result will include the amount you can withdraw and the amount you will use to purchase annuity. Based on the annuity value, you will also get to know the monthly  payout you will receive during retirement.

Here’s how you can use the NPS calculator for pension, annuity, or lump sum amount calculations. Firstly, you need to input certain information, like your age, contribution amount, annuity percentage, expected interest rate, and tenor. Once you have these details follow the steps given below:

1. Visit the NPS calculator page

2. Enter your current age and age you will  be when the tenor ends 

3. Fill in your contribution amount (monthly, yearly, etc.)

4. Input the rate of return you expect

5. Select the annuity purchase percentage 

6. Enter the expected return rate for your annuity

 

Once you submit these details, you can get the estimate of your investment details in a few seconds. 

 

It is crucial to know that you cannot calculate the NPS tax benefits, and therefore it is not an NPS tax benefit calculator. Another essential point is that the values are just an estimate. NPS offers market-linked returns. Hence, the actual returns and pension value may change.

The NPS calculator, for pension amount and other details, uses the following formula:

 

MV=P*(1+r/n)^nt 

 

Here, 

MV is the maturity value 

P is the investment/ contribution

r is the interest rate

n is the number of times interest compounds 

t refers to the investment tenor

 

Here is an example: Consider that you are 25 years old and intend to invest ₹3,000 every month till the age of 60. Your investment tenor will be 35 years, with an expected return rate of 14% p.a., and the maturity value would be approximately ₹3.36 Crores. 

While you could do the calculations manually, they are more prone to errors. An online NPS calculator is quick, easy to use, accurate, and offers more details.

Here are some benefits of using an NPS calculator that you could enjoy: 

• Retirement Planning

By knowing the returns at maturity, you could make a well-informed investment keeping your retirement needs in mind

• Quick and Easy

This easy-to-use digital tool provides results within a few seconds using your NPS investment terms 

• Free of Cost

You can access this online tool without paying any charges and use it whenever required, as many times as you need  

• Accurate Estimates of Returns 

It gives accurate results, eliminating the need for manual calculations, which are prone to human-errors and time consuming