NPS Calculator

by Zoho Payroll

Check out Zoho Payroll

Calculate your NPS returns

Give us the basic numbers and let us work our magic to show you how much you'd get on your fund's maturity.

Investment per month : *

Rs.

Please enter your investment amount.

Expected return (PA):*

The value should be between 5% and 15%.

Your Age at the time of investment:*

Years

The value should be between 18 and 60.

Your retirement age*

Years

The value should be between 60 and 75.

Annuity Percentage*

The value should not be less than 40%

Expected Annuity rate (PA):*

The value should be between 4% and 10%

You invested

Interest earned

Maturity amount

Lump sum value

Annuity Value

Monthly Pension

Disclaimer: Zoho has taken great care and has made every attempt to ensure that the information obtained from the tool is accurate. However, Zoho is not responsible for any errors or omissions and provides no guarantee or warranty on the correctness of the results obtained from the tool. By using this tool you agree not to hold Zoho liable for any issues that arise from incorrect results obtained.

What is NPS?

NPS stands for National Pension Scheme. As the name suggests, it is a scheme via which Indians can secure their finances post-retirement. It aims to help you grow your corpus via small monthly investments that won't burn a hole in your pocket. Anyone between the ages of 18 and 60 can invest in the NPS given that they comply with the KYC guidelines.

Formula for NPS calculation in India is A = P (1+r/n) ^ nt

A -Total corpus amount at maturity

P - Principal sum

r -Rate of interest per annum

n -Number of times interest is compounded per year

t -Time (in years)

Major advantages of using the NPS calculator

Our NPS Calculator can assist you in the following ways:

It tells you what you can expect on the fund's maturity so that you can plan your post-retirement life accordingly.
You don't have to power through endless numbers manually and formulae to know how much money you'll get when you can compute it at a single click.
Know how much you'll save up on taxes under Section 80 CCD and accordingly plan your tax-savings investment portfolio.

How can you calculate pension amount with this tool?

Zoho Payroll's free NPS calculator shows you the provisional lump sum and pension amount you get at retirement based on your monthly contributions, annuity purchased, and expected rate of return.

Just enter the required data in the relevant fields. Our free NPS calculator will tell you how much you can expect after retirement.

Investment per month:

The monthly investment amount you contribute towards your NPS.

Expected return:

This is the estimated return you expect to achieve with your NPS investment. It varies based on your investment choice, market conditions, and the performance of the assets.

Age at the time of investment and retirement:

Enter the age at which you started investing for NPS and the age at which you plan on retiring.

Annuity:

Annuity in NPS refers to the pension you will receive every month from the Annuity Service Providers (ASP) after your NPS reaches maturity.

Annuity percentage:

This is the percentage of pension wealth you would like to reinvest to purchase an annuity.

You can reinvest a minimum of 40% to a maximum of 100% of the corpus to purchase an annuity. Any amount remaining can be withdrawn as a lump sum at the time of retirement.

Note: Users who are subscribed to tier 1 of NPS and wish to exit prematurely (i.e., before the age of 60), must reinvest at least 80%, if the corpus amount at the time of exit is higher than ₹ 2.5 lakh. If it's lesser than or equal to ₹ 2.5 lakh, the entire corpus can be withdrawn as lump sum.

Users who are subscribed to tier 2 of NPS, can withdraw funds without any restrictions.

Let us see an example.

Albert, a 25 year old employee, decides to contribute Rs. 3000 every month towards his NPS account. He keeps contributing for the next 35 years, expecting a return of 10% p.a. On his 60th birthday, his total investment will be Rs. 12,60,000, his interest earned will be Rs. 1,02,24,830 and his lump sum value will be Rs. 68,90,898.

In addition to the lump sum amount, Albert decides to buy an annuity at 40% p.a. This is what his pension account figures will look like:

12,60,000

You invested

+

1,02,24,830

Interest earned

=

1,14,84,830

Maturity amount

Lump sum value

₹68,90,898

Annuity value

₹45,93,932

Monthly pension

₹38,283

Frequently Asked Questions

What is NPS, and who is eligible to invest in it?

NPS stands for National Pension Scheme, a scheme via which you can secure your finances post-retirement. Anyone between 18 and 60 can invest in NPS, as they comply with the KYC guidelines.

How does the NPS work?

The NPS is a market-linked pension scheme, which allows subscribers to contribute to their pension account during their working life. The money is invested in various asset classes, such as equity, corporate bonds, and government securities, to generate returns. At retirement, the subscriber can withdraw a portion of the accumulated corpus as a lump sum and use the remaining amount to purchase an annuity from a PFRDA-registered insurance company, which provides regular pension payments.

How can Zoho Payroll's free NPS calculator assist me in planning for my retirement?

Zoho Payroll's NPS calculator can tell you what you can expect when the fund matures so that you can plan your post-retirement life accordingly. You don't have to power through endless numbers and formulae manually to know how much money you'll get when you can compute it at a single click.

What are the tax benefits of investing in the NPS?

The NPS offers tax benefits under Section 80C, Section 80CCD(1B), and Section 10(12A) of the Income Tax Act, 1961. Subscribers can claim a deduction of up to Rs. 1.5lakh under Section 80C, an additional deduction of up to Rs. 50,000 under Section 80CCD(1B), and the entire lump sum withdrawal amount and 60% of the annuity amount received are tax-free under Section 10(12A).

What happens to the NPS account in case of the subscriber's death?

In the event of the subscriber's death, the entire accumulated corpus in the NPS account is paid to the nominee or legal heirs of the subscriber. The nominee can choose to receive the entire amount as a lump sum or use a portion of it to purchase an annuity for regular pension payments.

Can I withdraw money from my NPS account before retirement?

Yes, partial withdrawal is allowed under certain conditions like for the purpose of higher education, medical treatment, buying a house, or marriage of children. However, premature withdrawal is not allowed before the age of 60.

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