NPS Calculator

Planning to retire at the age of 60 but worried about the future? It becomes easier to plan retirement if you can see how your savings will grow over time. An NPS Calculator helps you visualise your future pension and retirement corpus by showing how regular monthly investments can compound and give an estimate of your maturity value and annuity amount. This makes it simpler to plan a secure and financially independent retirement. Continue reading to know more about the NPS calculator.

What is an NPS Calculator?

NPS calculator is an online tool that helps an individual to estimate their retirement corpus or monthly pension based on the initial investment in the national pension scheme. It helps in retirement planning and understanding the growth of investment over time in the NPS scheme.

How to Use the NPS Calculator?

NPS calculator is an online tool that is easy to use with just a few details. Mentioned below are some simple steps to use the NPS calculator

• Enter investment amount per month
• Enter expected return rate 
• Enter age

NPS calculator will process these details and estimate returns and the total maturity value, interest earned and minimum annuity investment amount

Benefits of Using NPS calculator

Here are some of the benefits of using NPS calculator- 

Easy retirement planning- NPS calculator estimates your pension which helps in better financial planning after retirement.

Instant results- NPS calculator offers quick. Real-time estimates of retirement corpus which helps in making investment decisions.

Easy Accessibility- NPS calculator is accessible to everyone who is a new entrant or nearing retirement.

Example Calculations

A NPS Calculator helps you estimate the value of pension or retirement corpus at the time of retirement. Let’s understand this with an example:

Suppose an individual aged 20 years invests 20000 per month in an NPS scheme at an expected annual return of 8%. As per NPS rules, at least 40% of the corpus must be used to buy an annuity. The remaining 60% can be withdrawn as a lump sum at retirement. 

Here is how the amount grows year by year:

Conclusion

NPS calculator is a simple tool that offers a clear picture of retirement saving will grow with time. Whether you are at an early stage of your career or already near retirement, using the NPS calculator gives a glimpse of post retirement. You can adjust your contributions to build a financially secure  future.