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