National Pension Scheme Calculator

The financial goal of investing in the NPS scheme is to create wealth and corpus funds that generate monthly income and provide certainty of this income post-retirement. To fulfill this goal, NPS calculator is one of the popular financial tools through which an investor gets an estimate of the wealth gained, maturity amount of entire investment, monthly pension, and amount to be received post-retirement in the NPS scheme.

All Indian Citizens who are above the age of 18 years, but less than 60 years are eligible to invest in NPS. It is required that customers know the KYC guidelines and submits relevant identity proof, address proof, and bank account details.

How online NPS calculator works?

  • The first step of using the NPS calculator is choosing the investment type i.e., monthly, or yearly.
  • Once you chose the investment type, then select the amount you are planning to contribute yearly or monthly
  • Then you need to enter the current age of the investor, which must be more than or equal to 18 years of age.
  • Then mention the withdrawal % on retirement from the NPS account.

Based on the above-mentioned details filled in the NPS calculator, it generates the following:

  • Total Amount invested
  • The wealth gains made on the investment
  • Total NPS Maturity Value

The NPS calculator mainly displays the result in two formats

  • Through Graphs :
    • Helping users to gauge the accumulation of money while investing in NPS. Apart from that, shows how much tax one can save on making a certain amount of annual NPS investment under Section 80C of the Income Tax Act, 1961.
  • Scenario analysis
    • It is helpful to gauge the lump sum amount and expected annuity that can be received during sunset years. The benefit here of using the NPS calculator is that users can put different lump sum scenarios like 40%, 60%, and 80%.

Benefits of NPS calculator

  • Online NPS calculator makes complex calculation of finding retirement corpus simplified.
  • Easy to use and accessible
  • Give investors an option to evaluate the NPS investment amount needed for achieving the desired retirement corpus.
  • Also, evaluate the tax savings under Section 80C.
  • Also does for your overall financial planning by taking care of retirement calculations

Frequently Asked Questions

  • Is there any minimum contribution to the NPS scheme?
    Yes, it is mandated to make at least 1 contribution in a year if you are planning to invest in the NPS scheme.
  • Is there any nominations limit in the NPS scheme?
    Yes, one can make up to 3 nominations in the NPS account.
  • Is the NPS interest calculated monthly or quarterly?
    The interest is earned on a monthly compounding basis. After that, you need to put the expected rate of interest or returns on your NPS investment.
  • Do NPS schemes have a lock-in period?
    The minimum contribution one can make in NPS is Rs 250. If you are investing in Tier 2, you cannot also claim even tax benefits. There is no lock-in period in the NPS scheme
  • Can NPS be withdrawn?
    After maturity, one is allowed to do NPS withdrawals for up to 3 years from the time he or she turns 60 or reaches superannuation age whichever comes first.
  • What is the minimum amount contribution criteria for Tier 1 and Tier 2
    The minimum amount contribution is Rs 500 for one time and Rs 1000 per financial year. The minimum contribution at one time is Rs 250.