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NPS Calculator

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Yr
%
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Yr

For 31 Years of contribution

Principal amount₹ 46,50,000
Interest earned₹ 1,53,32,031
Pension wealth₹ 1,99,82,031
Annuity reinvested₹ 79,92,812

After retirement

Lumpsum amount withdrawn₹ 1,19,89,218
Pension per month₹ 57,263
Principal amountInterest amount

The National Pension System (NPS) is a market-linked investment that helps people save for retirement. Koshex's NPS Calculator can help you estimate how much money you would have accumulated at retirement.

How Does Our NPS Calculator Work?

Our NPS Calculator works on the below formula:

M = P * [ ( ((1 + i)^n) - 1 ) / i] * (1 + i)

Where,

P is the principal amount invested by you
i is the expected rate of return
n is the number of times the growth rate compounds
t is the tenure of the investment

Example:

Mr. Sam is 24 years old and he subscribes to the National Pension Scheme. He decides to contribute ₹2,000 every month towards the scheme. NPS matures when the subscriber turns 60 years of age. This means Sam will be able to contribute for the next 36 years towards the scheme. He expects a return on investment of 9% per annum. He also likes to purchase an annuity for 50% and expects a 7% rate of return on the annuity.
When we make the calculation, we can see that Sam will be making a total investment of ₹8,64,000 and he would generate a total corpus of ₹65,08,958, which includes a lumpsum value of ₹32,54,479 and an annuity value of ₹32,54,479. He can expect a monthly pension of ₹25,232.

The calculation would look like below:

M = 2,000 * ( ( ((1+0.09/12) ^ 432) - 1 ) / (0.09/12) ) * (1+ 0.09/12)
M = ₹65,08,958

Since, 50% of this is annuity, i.e. ₹32,54,479 (50% * ₹65,08,958) which could assumed for a remaining period of 20 years. Therefore, pension per month ₹25,232.

How Should You Use Koshex NPS Calculator?

Here is a step-by-step guide on how to use the Koshex NPS Calculator.
Step 1: Select whether you want to invest monthly or yearly and enter the investment amount
Step 2: Enter your current age and the age at which you are looking to retire
Step 3: Enter the percentage of the amount you wish to withdraw after retirement. This is the percentage of pension wealth that will be invested in the annuity plan. The percentage of the accumulated corpus you will use to buy a pension plan. The withdrawal amount cannot be greater than 60% and the investment in the annuity plan cannot be less than 40%.
Step 4: Based on the details given, the calculator will estimate the following numbers: Monthly pension, wealth gained, total corpus created, and withdrawal on retirement.

Benefits Of Using Koshex NPS Calculator

Some of the advantages of Koshex's NPS calculator are as below:

  • The National Pension System calculator uses minimal effort
  • This NPS calculator saves time, as you can calculate the maturity amount in a couple of seconds
  • The NPS calculator is accurate, so you will get error-free results
  • You will be able to plan your finances better with our calculator

NPS Calculator - FAQs

Who can join NPS?
Any Indian citizen between 18 and 60 years can join NPS. The only condition for Indian citizens who want to subscribe to NPS is that they must comply with Know Your Customer (KYC) norms.
Can a Non-Resident Indian (NRI) join NPS?
Yes. An NRI can join NPS. However, the amount will be closed if there is a change in the citizenship status of the NRI.
How do I join NPS?
You can open an NPS account with entities known as Point of Presence (POP). Most banks, both in the private and public sectors, are enrolled as POPs. Several financial institutions also act as POPs. The authorized branches of a POP, which are also called the point of presence service providers (POP-SPs), act as the collection points.
Can I have more than one NPS account?
No. You cannot open multiple NPS accounts.
What is the minimum contribution in NPS?
You have to contribute a minimum of ₹6,000 to your Tier-I account in a financial year.
What are Tier-I and Tier-II accounts?
Tier-I is a mandatory account and you cannot withdraw the entire amount from this account until your retirement. Even on retirement, there are restrictions on withdrawal on the Tier-I account. Tier-II is a voluntary account and you can withdraw the entire amount from the account.
What will happen if I don't deposit the minimum contribution in my NPS?
Your account will be frozen if you do not contribute the minimum amount. You can unfreeze the account by visiting the POP and paying the minimum required, along with a penalty of ₹100.
Is there any tax benefit for putting money in NPS?
An employee's own contribution is eligible for a tax deduction - up to 10% of the salary (basic + DA) - under Section 80CCD(1) of the Income Tax Act within the overall ceiling of ₹1.5 lakh allowed under Section 80C and Section 80CCE.
The employer's contribution to NPS is exempted under Section 80CCD (2). Also, individuals can claim an additional deduction of up to ₹50,000 under Section 80CCD (1B), which is in addition to ₹1.5 lakh permitted under Section 80C.
A self-employed person can also contribute 10% of this gross income under Section 80CCD (1) in NPS.
When can I withdraw money from NPS?
You are expected to stay invested in NPS until your retirement. When you are 60, you must use at least 40% of the corpus to buy an annuity income from a PFRDA-listed insurance company. You have the option to withdraw 60% of the corpus tax-free.
What if I want to take the money out before I am 60?
If you wish to take your money before you are 60, you can withdraw only 20% of the accumulated corpus in NPS. You must use 80% of the corpus to buy an annuity.