NPS calculator
Best SIP Calculator Online
Accurate insights into FD returns
Maturity Amount
₹4,68,13,203
Investment Per Month
Expected Return Per Annum
Your age
Your returns
0.0%
Total Investment
Interest Earned
*This amount is calculated on 9.0% p.a. for the span of 20 yrs.
Total Investment
₹48,00,000
Interest Earned
₹4,20,13,203
Maturity Amount
₹4,68,13,203
Min. Annuity Investment
₹67,28,960
The NPS calculator lets you estimate returns and lumpsum value of your retirement corpus under the National Pension System (NPS). People between 18 and 70 years old in India are eligible for the National Pension System. Thus, Indian citizens within this age group use the NPS calculator extensively to estimate returns on their NPS contribution and build a strong retirement portfolio.
What is NPS Calculator?
The NPS calculator is a financial tool that projects the future value of your pension corpus created through NPS contributions at regular intervals. Therefore, the National Pension System (NPS) calculator is important to pension seekers for building a secure and stable retirement plan. Using the best NPS calculator, you can get an idea of the potential capital you can accumulate and the monthly pension you will receive during retirement. The NPS pension calculator has attracted growing demand, especially from private working professionals looking to build a financially secure and stable future.
What is the National Pension System (NPS)?
National Pension Scheme (NPS) is a market-linked pension scheme backed by the central government. NPS is a voluntary and flexible scheme. The primary aim of the scheme is to allow working professionals to accumulate a target corpus for retirement needs.
The National Pension Scheme was launched by the government of India in 2004 as a long-term retirement saving scheme. Currently, the National Pension Scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
Individuals (working or self-employed) can invest in the NPS scheme. Such investments are reinvested by fund managers in securities like equities, debt or corporate bonds, resulting in portfolio building for retirement.
At the maturity period, pension contributors can withdraw 60% of their contribution, and the remaining 40% is received in the form of a regular pension. To receive such a pension from your accumulated NPS corpus (40%), purchasing an annuity plan from an insurance company is mandatory.
How Does NPS Calculator Work?
The National Pension System (NPS) calculator works based on the compounding principle. It calculates the value of your lumpsum pension corpus and estimates pension instalments based on the inputs provided by the NPS subscriber. The inputs required to use the best NPS calculator comprise the contribution amount, expected rate of return and your current age in years. Using this information, an NPS pension calculator shows the potential capital accumulated and the estimated returns generated over time.
Look at the formula below to understand how the NPS return calculator works.
FV = P(1+r/n)^nt
Here,
P = Principal amount being invested
r = rate of return
n = number of times return compounds
t = total tenure
Note - “Project your MF returns using our SIP and Lumpsum calculators”
Illustration of an NPS Calculator
Arvind is 23 years old and works in a private MNC in India. He has decided to subscribe to the National Pension Scheme (NPS). He has decided upon a monthly investment amount of ₹ 3,000 for the next 37 years. Arvind expects a return rate of 13% on his investments and will withdraw 60 % of his corpus on maturity. With the remaining corpus, he will purchase an annuity plan to receive a monthly pension.
Inputs for the NPS Calculator
Investment Tenure - 37 years
Monthly Investment Amount - ₹ 3,000
Required Return Rate - 13 %
Output for the NPS Calculator
Total Investment - ₹ 8,28,000
Estimated Return (%) - ₹ 43,14,041 (521.0%)
Maturity Amount - ₹ 51,42,041
Min. Annuity Amount - ₹ 20,56,816
Explanation
From the above example, we can infer that Arvind could calculate his total estimated return using the NPS pension calculator. As per the results of the NPS calculator, at maturity, when Arvind is 60 years of age, his total retirement corpus will aggregate to ₹ 51,42,041. Out of this corpus, he will be withdrawing 40%, amounting to ₹ 30,85,225. The remainder of the corpus (₹ 20,56,816) will be used to purchase an annuity plan from an insurance corporation.
Advantages of Using the NPS Calculator?
- Retirement planning
In an era where job insecurity has become prominent, the NPS pension calculator works as an assistant that helps build a robust retirement plan. Using the best NPS calculator, you can create a retirement plan based on the results shown by the calculator. - Investment comparison
The national pension scheme calculator acts as a benchmark for comparing different investment options. It offers market-linked return projections, which can be used to compare returns from other financial instruments. - Easy-to-use
Most of the best NPS calculators have an easy-to-use user interface, enabling users to access and use them easily. - Future value projection
The best NPS calculator makes it easier for investors to estimate their future returns on regular NPS contributions. These future value projections are integral to an investor's investment and retirement planning for a secure financial future.
Tips For Using the NPS Calculator?
Even tho using an NPS return calculator may look easy, there are some mistakes that you must avoid. Here are some tips that you can follow to avoid unnecessary mistakes while calculating your potential returns using an NPS pension calculator.
- Don’t solely rely on estimated returns
The return projections depicted by the best NPS calculator are based on assumptions regarding the future growth of underlying securities. Hence, you must not interpret the returns of the NPS return calculator as a guarantee. These returns can deviate from the actual earnings due to market fluctuations. - Always factor in inflation
While making retirement plans based on the return of the best NPS calculator, ensure that you consider inflation in your calculations. It is essential because the impact of inflation is not visible in the results of an NPS pension calculator. Therefore, ensure you assess the actual returns after factoring in inflation. - Don’t deviate from retirement goals
Before using an NPS calculator, you must have a set of clear investment and retirement goals. By doing so, you will avoid getting lured by higher returns and a pension corpus. Sticking to a fixed retirement plan keeps you focused and safeguards you from any kind of loss.
What is Univest NPS Calculator?
Univest NPS calculator is one of the best online financial calculators available on the web. It allows you to make excellent predictions for potential returns on retirement investments. By using the NPS calculator of Univest, you can make a better investment decision and create robust retirement plans.
How to Access the Univest NPS Calculator?
You can use the Univest NPS calculator to estimate your returns and integrate NPS into your portfolio accordingly.
Steps to Access Univest NPS Calculator
Step 1 - Open a search engine and search for Univest in it.
Step 2 - On the top ribbon of the webpage, click on the explore tab.
Step 3 - From the resultant dropdown list, choose the calculator option.
Step 4 - Now, choose the NPS calculator.
Steps to Use Univest NPS Calculator
Follow the steps below to use the NPS calculator by Univest:
Step 1 - Enter the necessary inputs in the NPS return calculator.
Step 2 - The corpus will be calculated automatically once you enter values.
Step 3 - Change the inputs either manually or by using the slider.
Step 4 - Calculate the different corpus values using the NPS calculator.
Eligibility for National Pension Systems (NPS)?
NPS eligibility for individuals/citizens
- You can open an NPS account if you are an Indian citizen, whether resident, non-resident or an overseas citizen of India.
- You must comply with the Know Your Customer (KYC) norms as per the subscriber registration form (SRF).
- You must fall between the ages of 18 and 70 as of the date of submission of your application.
- Hindu Undivided Families (HUF) and Persons of Indian Origin are not eligible to subscribe to NPS.
- You cannot open an NPS account on behalf of a third person.
How is the National Pension System (NPS) taxed?
The NPS is a central government-backed scheme that offers tax benefits to its contributors. Learn more about the tax benefits of NPS contributions in the points below.
Taxation benefits for self-contributing employees
Individual working employees are eligible for the following tax benefits for contributing to the National Pension Scheme (NPS).
- Tax deduction up to 10% of salary (basic + DA) under Section 80CCD (1) within the overall ceiling of ₹ 1,50,000 under Section 80CCE.
- Additional tax benefits of up to ₹ 50,000 under section 80 CCD(1B) over and above the ceiling of ₹ 1,50,000 under section 80 CCE.
Taxation benefits for employees on the employer's contribution
Tax deduction up to 10% of salary (Basic + DA) (14% if the Central Government makes such contribution) contributed by the employer under Section 80 CCD(2) over the limit of ₹1.50 lakh provided under Section 80 CCE.
Taxation benefits for the self-employed
Self-employed individuals who contribute to NPS are eligible for the following tax benefits.
- Tax deduction up to 20 % of gross income under section 80 CCD (1) within the overall ceiling of ₹1.50 lakh under Section 80 CCE.
- Tax deduction up to ₹50,000 under section 80 CCD(1B) over and above the overall ceiling of ₹1.50 lakh under Sec 80 CCE.
Please ensure that when you calculate your returns using the best NPS calculator, you know these taxation benefits. It will help you save significant tax and enhance your overall return and earning potential.
Conclusion
- The National Pension Scheme (NPS) is a central government-backed social security scheme launched in 2004. It focuses on investing an individual's income in market-linked products to create a retirement corpus.
- The NPS pension calculator is a financial tool that allows investors to estimate their returns on the NPS contribution till the maturity date.
- The NPS return calculator operates on the principle of compounding returns. The NPS return calculator estimates the value of the retirement corpus based on the inputs provided by an NPS contributor.
- You can use the Univest NPS calculator to calculate the estimated returns on your NPS contributions.
- The best NPS calculator provides only an estimation of your target corpus; therefore, you must not assume it as a guarantee.
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FAQs
How can I get a 50,000 pension per month in NPS?
To earn a pension of 50,000 per month, you must invest a significant amount of money regularly in the NPS at an early age, when you are above 18. However, there is no fixed formula to calculate the corpus you require to receive a monthly pension of 50,000. You can use the NPS calculator to project your retirement corpus and calculate your estimated monthly pension.
How to calculate NPS returns?
You can calculate your NPS return rates using the NPS pension calculator. You can estimate the NPS contribution amount to achieve the targeted retirement corpus using the NPS calculator.
Is NPS tax-free?
Yes, NPS is tax-free up to the amount of the lumpsum withdrawal of 60% of the total corpus. Also, you do not have to pay any taxes on the remaining 40 % at that time. However, only the annuity amount that you receive in the form of a pension is taxed.
Can I withdraw 100% of my NPS corpus?
You can withdraw 100% in case of premature withdrawal (exit before 60 years) if your corpus is less than or equal to 2.5 lakhs. If you take a normal exit (at 60 years or beyond), you can withdraw 100% if your corpus is less than or equal to 5 lakhs. In case of an unfortunate death (before 60 years), 100% of the corpus will be given to the legal heir or nominee. If you want to calculate your estimated retirement corpus, you can use the NPS calculator by Univest.
IS NPS better or PF?
NPS is a retirement scheme that offers market-linked returns and is suitable for young working professionals who can handle market fluctuations. The provident fund (PF) is also a retirement-oriented government scheme. PF provides returns independent of the market, and withdrawals are only allowed for specific reasons.
What is the age limit in NPS?
You can open an NPS account if you are between the ages of 18 and 70 years and are a resident, non-resident or overseas citizen of India.
Can I use an NPS calculator if I am below 18?
Yes, you can use the NPS calculator if you are below 18 to estimate the future value of your retirement corpus. Using the NPS pension calculator, you can gauge the corpus amount that you can accumulate once you start contributing to the National Pension Scheme (NPS).