NPS calculation

NPS CALCULATION – KNOW HOW IT WORKS?

NPS (National Pension System) is a government pension scheme. This scheme based on the contribution you made till maturity and after that, you got a regular pension. The NPS calculation will show you the amount of corpus and the approximate amount of monthly pension to be received by you. Therefore the amount of corpus collected by the time you retire will depend on your returns generated and investment amount.

How To Do NPS Calculation With The Help Of NPS Calculator?

For the calculation the calculator needs following details:

  • Your age and the age you wish to retire
  • Every month invested an amount
  • Expected returns you want from your NPS investment
  • Annuity period
  • The pension % wealth invested in the annuity plan
  • Expected rate of interest

Let us assume, Shyam who is 36 years old and is expected to retire at 60. He is investing Rs. 10000 every month in the NPS scheme. The expected annuity rate is 8%.

Must Read: NPS CONTRIBUTION – LATEST RULES AND UPDATES

 The NPS Calculation:

Number of invested years24
Amount invested (sans interest)Rs. 28,80,000
Interest earnedRs. 57,73,258.43
Total amount invested in NPSRs. 28,80,000 + Rs. 57,73,258.43 = Rs. 86,53,258.43
Annual pensionRs. 4,15,356.40
Monthly pensionRs. 34,613.03
Withdrawable amount on maturityRs. 34,61,303.37

 How The Calculator Works

With the help of required inputs, you will get the corpus that will be calculated by you at the time of your retirement. With the principle of the power of compounding the corpus is calculated.

What The Calculator Shows

The calculator will show you the complete details of your investment. It will also show you the interest earned by you, the amount invested by you during the accumulation phase of the scheme and the total amount of corpus generated at the time of maturity. Therefore NPS calculator shows the break-up of details of the amount which is re-invested to receive lump sum amount withdrawn by you and monthly pension. It also shows the amount of monthly pension that you will receive which is based on the expected returns from the annuity.

Must Read: BEST NPS FUND MANAGER COMPARE PERFORMANCE, RETURNS

Where Can I Invest In NPS? 

Some of the banks of India which offer pension plans

NPS plans6 months returns (in %)1 year returns (in %)3 years returns (in %)5 year returns (in %)
HDFC pension fund48.78NANA
ICICI prudential pension fund3.918.849.4710.59
Kotak pension fund4.419.369.1410.35
LIC pension fund3.648.6NANA
Reliance capital fund4.089.059.1710.19
SBI pension fund3.948.818.9310.21
UTI retirement solutions3.998.799.0810.02

The returns for 1 year and 6 months are absolute, whereas the returns for 5 and 3 years are compounded annually.

Who Can Use NPS Calculator?

Anyone who is eligible to invest in NPS (National Pension Scheme) can use NOS calculator. Hence according to the rules, any Indian citizen who falls between the age group of 18-60 years can invest in this scheme.

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