Calculating NPS: How to Calculate NPS Pension Online?

National Pension Scheme or NPS is a government-launched scheme to provide financial stability to senior citizens. As you invest your money in NPS, you must have an idea of what to expect from it, i.e. by calculation NPS returns, you will be able to ascertain whether your investment aligns with your future expectations.

Here, we will tell you how to calculate returns on NPS investment. Let’s begin.

Calculating NPS: How?

Using the NPS calculator or the pension calculator provided by the NPS Trust.org, you can easily get an idea of how much you should invest to realise your post-retirement goals.

Disclaimer

“NPS pension calculator illustrates the tentative Pension and Lump Sum amount an NPS subscriber may expect on maturity. The calculation shown below and illustration of figures are indicative only and not on actual basis. Investments under NPS are subject to market risk.“

Steps to use NPS Calculator or Pension Calculator

• Open the online NPS calculator at the NPS Trust.org official website
• Enter your date of birth
• Fill in the NPS contribution you’d like to make per month
• Select till which age you’d like to continue your NPS contribution (maximum 75 years of age)
• You’ll be shown your total years of contribution in the next row
• Now, select expected NPS return (5%-15%)
• Select the portion you’d like to use for Annuity purchase (40%-100%)
• Choose your expected Annuity rate (4%-10%)

You’ll see the status of your NPS pension account at retirement in this format:

Also Read: NPS Benefits

Details Required for NPS Calculation

For Calculating NPS, there are a few details you need to enter in the calculator to determine the lump sum you will receive upon the scheme maturity. You can also change the timelines in the NPS return calculator to get your desired results. Here are the details –

1. Your date of birth
2. Monthly contributions
3. Your age till which you can contribute to the scheme
4. Your return expectations from the investment
5. The annuity rate you’re expecting
6. Annuity rate on which you would like to purchase the scheme

Calculating NPS with Example

NPS calculator or the Pension calcualtor is an online free tool which anyone can use to see how much NPS investment would accrue what NPS returns.

Let’s understand the NPS calculation with the help of an example:

• Vrinda’s age: 30 years
• Her monthly contribution = Rs. 5,000
• Total years of contribution (automatically calculated by NPS calculator) = 30 years (60 years – 30 years)
• Expected return on investment = 10%
• Percentage of Annuity purchase = 50% (minimum 40% under existing NPS rules)
• Expected rate of return on annuity = 6%

Expected NPS Returns after calculating NPS:

Total NPS Investment: Rs 18,00,000 (Rs 18 lakhs)

Total NPS Corpus: Rs 1,13,96,627 (Rs 1.13 Cr)

Expected Monthly Pension: Rs 28,492

Annuity Value: Rs 56,98,314

Lump Sum Value: Rs 56,98,313

Also Read: NPS vs PPF

Did You Know?

National Pension Scheme provides financial security during retirement when people do not have a stable source of income. NPS also provides tax benefit on the contribution, and the amount that an investor uses to buy the annuity is exempt from tax under Section 80C of the Income Tax Act, 1961.

Calculating NPS with Pension Calculator: Benefits

Benefits of using NPS calculator online:

• NPS calculator is easily accessible online, and it is simple to use
• It can get results within seconds and can be used multiple times
• NPS calculator is also free of charge, and you can use it without any hassles.

Calculating NPS: FAQs

Also, read about EPF Pension Calculator, Pension on Investment Simplified.