Free NPS Calculator

Find out how much money you can save for your future!

Calculate your National Pension Scheme amount in seconds using the Vakilsearch NPS calculator!

₹500

₹1.5L

%

8 %

15 %

yr

18 Yr

60 Yr

Total investment

43,20,000

Interest earned

6,89,98,411

Maturity amount

7,33,18,411

Avoid tax losses

National Pension Scheme Calculator - NPS Calculator

The national pension scheme was introduced as a low cost investment vehicle that helps the general public to effectively build a portfolio for retirement by investing their money in a market based investment vehicle. NPS Return Calculator provides the Indian citizens a greater opportunity to accumulate a retirement fund by investing in 4 different classes of assets as per their choice. Under subsection 80 CCD 1B it provides an additional tax deduction of up to ₹50,000. This exceeds the ₹1.5 lakh investment deduction allowed under Section 80C.

NPS Pension Calculation Formula

The underlying engine of the NPS Pension Calculator computes the maturity value of the investment based on the user inputs as shown in the calculator steps.

The NPS calculation formula is as follows:

P*(1+r/n)nt = Maturity value (MV)

P = the invested principal
R = the rate of return
N = the total number of time the returns are compounded
T = the total time duration of the investment

To understand the NPS formula better, let us look at an example.

Say Mr ABC, age 25, plans to invest in an NPS as a part of his retirement plan. He can invest ₹5,000 per month and has an aggressive investment strategy (capable of generating a 14 % return) over a 35-year investment period (retirement age 60 – current age).

Based on the above inputs, the tool will produce the following results.

  • ₹21 lakhs in principal invested

  • Profits on principal invested = ₹5.41 crore

  • Total maturity value = ₹5.62 crore (principal invested + gains of ₹5.41 crore).

  • He withdrew a lump sum of 40%, which means he took 60% of the money, or ₹3.37 crore.

  • Annuity money invested = ₹2.25 crore

  • Expected monthly pension = ₹1.24 lakhs

The Benefits of Using a National Pension Scheme (NPS) Calculator

  • It can reduce the overall complexities involved in calibrating the retirement fund

  • Anyone can access the Vakilsearch NPS retirement calculator online and it is free of cost

  • The NPS Pension Calculator is a computerised tool that assists investors in calculating NPS returns based on various scenarios and estimating the corpus generated by NPS investments

  • It allows the investor to calculate the total amount and unity that can be received as per the tenure and interest choices made by the investor

  • One can also calculate the total amount of NPS investment required to reach the retirement fund

  • The NPS retirement calculator displays the tax savings that NPS investors would receive under Section 80C

  • Helps with overall financial planning by handling retirement calculations. Investors can then concentrate on their other financial objectives on their own.

How to Use the Net Pension Score Calculator

First, you must enter the following information in the following order:

  • Investment Amount - Enter the monthly amount you wish to contribute

  • Enter your age

  • The NPS scheme calculator will now calibrate the total number of years that has to be contributed to the scheme

  • Now enter the return on investment and choose the required amount

  • Total amount of annuity to be purchased - This is the monthly pension that an NPS subscriber will receive from the annuity service provider

  • The percentage of corpus that can be funded in an annuity should be at least 40% or more but never less

  • If you plan to leave the framework before the age of 60, the minimum amount of pension wealth that must be paid back in an annuity is 80%

  • Expected Annuity Rate - Now enter the required annuity rate, that is the amount you need as a monthly pension

  • After you enter all of your inputs, the NPS calc will begin trying to calculate the lump sum and retirement amount you can anticipate at maturity.

Eligibility to Use the National Pension Scheme Return Calculator

Access Vakilsearch National Pension Scheme Return Calculator and enter the required information in the particular fields. Make sure to click the calculate button and the required information will be provided within seconds.

Anyone who is interested in an NPS can use the calculator. And investment in the national pension scheme is open to all Indian citizens over the age of 18 but under the age of 60. All NPS applicants must adhere to the Know Your Customer (KYC) guidance and provide supporting documentation such as proof of identity, proof of address, bank account information, and so on.

The more an investor invests in an NPS scheme, the greater the accumulated amount and the greater the retirement benefit from the accumulated pension wealth, making NPS appealing to investors.

Frequently Asked Questions (FAQs)