The National Pension System (NPS) is a mechanism designed to ensure financial security for Indian citizens post-retirement. It was previously referred to as the National Pension Scheme. Any individual above 60 years of age can access the accumulated funds in their pension corpus. To determine the total accumulation, you will need an NPS calculator.

Any Indian resident between 18 and 60 years of age is eligible to contribute to a pension corpus. It serves as both an investment and an asset for retirement. Since many people in India are employed in private sectors with limited job security, they require a National Pension Scheme calculator. Pension schemes in India are not linked to the market and offer reliable returns.

How can an NPS calculator benefit you?

Here’s how the NPS pension calculator can assist you:

1. It helps you estimate the future pension amount. The pension is an asset, not a liability. Using an NPS calculator online is essential to calculate the total corpus.
2. According to the current regulations, individuals cannot withdraw the entire post-retirement amount. Additionally, 40% of the corpus must be invested in annuities, and the remaining 60% is taxable. All these details will be clearly presented once you use our NPS scheme calculator.
3. The calculator provides accurate results every time. If you’ve ever tried manually calculating the pension amounts, you know how challenging it can be. Fortunately, our NPS calculator in India automates the entire process.
4. Finally, the calculator allows you to evaluate the taxation on pension funds, the monthly pension, and other related details.

Formula for calculating Pension amounts

NPS, like all global pension schemes, utilizes compound interest for calculating returns.

The formula used by the National Pension Scheme calculator India is:

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

Where A is the amount, and the other variables are as follows:

Here is an example to demonstrate how pension accumulation works.

For instance, if you're 34 years old and contribute Rs 3000 per month to your pension account for the next 26 years, with an assumed annual interest rate of 10%, the National Pension Plan calculator would provide the following information:

Total Principal invested = Rs 9.36 Lakh

Sum expected at maturity = Rs 44.35 Lakh

How to use the NPS calculator?

Here’s how to use the NPS calculator in a few simple steps:

Step 1: Enter the monthly investment amount you wish to contribute towards your pension corpus

Step 2: Enter your current age

Step 3: Adjust the slider to select the anticipated rate of return

The results will appear in seconds.

Benefits of using the National Pension Scheme calculator

Here are the benefits:

• No need for manual calculations. Get the right results each time.
• You will have a clear idea of your pension amount, helping with future financial planning.
• An all-in-one online calculation tool.

In addition, IPOtank offers a range of other financial tools, including the NPS calculator. You can find these at the bottom of the page.