NPS Calculator

https://www.shriramfinance.in/nps-calculator

Investment Per Month

Expected Return (p.a)

Your Age

Total Investment

₹ 50,40,000

Interest earned

₹ 7,30,48,323

Minimum Annuity Investment

₹ 3,12,35,329

Maturity Amount

₹ 7,80,88,323

NPS can be a great investment option for those working in private employment or unorganized sectors. But one has to make contributions consistently for years to build a corpus. Calculating future returns and deciding how much to contribute yearly can be challenging. If you plan to invest in the NPS, an NPS calculator can assist you in performing all the calculations.

What is the NPS?

The National Pension System (NPS) is a retirement savings scheme introduced by the government. It is a voluntary scheme designed to provide a fixed monthly pension to Indian residents after their retirement.

One has to contribute regularly to an NPS fund to create a corpus. After reaching the age of 60, the investor becomes eligible to withdraw a portion of their investment fund and commence receiving a monthly pension. The best part about the NPS is that it's open to any resident between 18 and 60.

What is an NPS Calculator?

An NPS scheme calculator is an online tool designed to perform mathematical calculations related to your NPS score calculation. Performing these calculations manually is a time-consuming process. This tool uses the NPS score formula to calculate the total contribution, interest received until retirement, minimum annuity investment, and maturity amount.

How Does an NPS Calculator Work?

The user has to enter the monthly NPS investment, the expected return % per annum, and their age into the NPS calculator online. The tool uses this information to calculate all the figures related to the NPS investment. It provides these answers within a few seconds using the NPS score formula. This tool is free to use and is available easily online.

How Can an NPS Calculator Help You?

With a pension plan calculator, individuals can determine the corpus fund they will accumulate, considering their current contributions, rate of return, and age. It can also find the minimum annuity requirement and the amount of interest earned on one's contributions. The process of NPS score calculation is faster because it's fully automated.

It is possible to calculate this information manually, but it's a time-consuming process.

An NPS scheme calculator makes it effortless. You can find calculators that help you compute other pensions, such as family pension calculators. NPS calculators can make the following calculations quickly and accurately.

Corpus Fund Maturity Amount

Using this calculator, one can calculate the amount of corpus fund they will have when they turn 60. The corpus fund amount is calculated based on the investor's age, the current NPS interest rate, and their expected yearly contribution.

Minimum Investment in Annuities

The minimum amount from a corpus that needs to be invested is 40 per cent. In case one wants to surrender before reaching the age of 60, they will have to use 80 per cent of the corpus to get the annuity scheme.Total Investment and Interest Earned

An online pension calculator calculates the total amount an investor would contribute till retirement based on their current age and yearly contribution. It can also estimate the interest the investor would earn on that contribution by then. One has to enter the expected rate of return, the contribution, and other details in the NPS scheme calculator.

Pension

Using the NPS calculator formula, one can compute how much pension they will receive after retirement. This is calculated based on the expected annuity percentage, rate of return, and corpus fund.

The formula for Calculating Pension Amounts

You can calculate your future corpus fund amount using the NPS calculation formula. The formula is based on the calculation of compound interest that you may have used before. It can be understood better with an NPS calculation example.

Here's the basic formula that pension plan calculators use.

A = P(1+r/n)^nt

A = Amount of corpus fund at the time the investor turns 60

P= Amount invested every year in the fund

r= Expected rate of interest p.a.

n= Number of times the interest compounds

t= Duration

Let's understand the NPS calculator formula with an NPS calculation example.

Suppose you start to invest ₹ 5,000 every month in the NPS at the age of 25. You have continued to invest the same amount every month for 35 years. The rate of return is 10% p.a. We can put these values in the NPS calculation formula to get the amount of corpus fund at the age of 60. Alternatively, you can put these figures in an NPS amount calculator. Here are the results given by the pension calculator.

Principal amount invested = ₹ 15,00,000

Interest earned= ₹ 51,34,167

Maturity Amount= ₹ 66,34,167

Annuity investment that cannot be withdrawn= ₹ 26,53,667

How To Use The NPS Calculator?

Instead of using the NPS calculation formula, one can use an online pension calculator for faster and more accurate answers. Some of the best NPS calculators are available online. Here's how you can use the one created by Shriram Finance.

Step 1: Open the pension calculator on the website of Shriram Finance.

Step 2: Enter your estimated monthly contribution to the fund in the relevant blank field of the NPS amount calculator.

Step 3: Select the yearly expected NPS interest rate

Step 4: Enter your age.

Step 5: Click 'Submit'. Within seconds, the pension plan calculator will reveal the maturity amount, the minimum annuity, the total contribution, and the interest earned on it.

Advantages of Using the National Pension Scheme Calculator

The following are the key benefits of using the NPS Calculator:

Quick Results

Once you enter the relevant data, the National Pension Scheme calculator will provide results within seconds.

Accurate Answers

All you have to do is enter all the required data in the correct fields, and the NPS calculator will provide accurate results, making it a highly efficient tool to plan your retirement.

Helps in Financial Planning

You can try out different contribution amounts and discover the corresponding maturity amounts with an NPS amount calculator. This can help you find a suitable contribution that will help you achieve your retirement corpus.

Easily Available

It is easy to find the best NPS calculator by searching the internet. They are readily available on various websites. You can also find other calculators with ease, such as the NPS trust calculator.

Free of Cost

The national pension scheme calculator designed by Shriram Finance is free of cost. Our NPS pension calculator is also easy to use, so you can be assured of a hassle-free experience.

Conclusion

NPS is among the most popular investment options to build a corpus for retirement. It is important to use an NPS calculator to determine the monthly amount you can expect upon retirement. This free and easy-to-use tool can help you identify how much you need to save in order to achieve your savings goals. Just enter a few details as requested and get accurate results within seconds with the Shriram Finance NPS Calculator.

Frequently Asked Questions (FAQs)

How is the NPS pension calculated?

NPS pension is calculated based on the investment in the fund, the annuity purchase percentage, and the expected rate of return. It can be calculated using an NPS calculator.

What is the current interest rate of NPS?

NPS is a market-linked investment. NPS interest rate depends on the performance of the asset classes in which the fund has invested. The return has been between 9%-12% in the past.

What are the tax benefits under NPS?

One can claim a tax deduction under section 80CCD(1) subject to the limit of ₹1,50,000. A deduction up to ₹50,000 is also available over this limit under section 80CCD(1B).

Who Can Use The NPS Calculator?

Anyone who wants to invest in the NPS can use the National Pension Scheme calculator.

How can I get a 50,000 pension per month in NPS?

To get a pension of over ₹50,000 per month, one has to invest at least ₹6,330 per month in NPS for 30 years, assuming a rate of return of 9% p.a.

What is the final amount of NPS?

The final amount of NPS is the amount of corpus that you have saved at the age of 60. It includes your contribution and the interest earned on it.

What has been the return of NPS for the last 10 years?

The return of NPS depends on the pension fund and its tier. In the past 10 years, the return has been between 9-12% for most funds.

Which NPS plan is best?

The Tier I NPS plans are usually considered the best plans. Tier II plans also provide good returns when compared to Tier III plans.

How much money will I get in NPS?

The amount of money you will get in NPS depends on factors like contribution, duration, age, and rate of return. Use an online pension calculator to find out your exact returns.

How do I know my total NPS amount?

One can use an NPS amount calculator to know their NPS amount.

How do I get a 30000 pension per month?

Assuming a rate of return of 9% p.a., you need to invest at least ₹3,998 per month in NPS for at least 30 years, to earn more than ₹30,000 pension per month.