NPS Calculator
The NPS calculator provided on paydoz.com is for informational purposes only. While we strive for accuracy, it is advisable to verify results with official sources or consult a financial advisor. The calculations are based on general investment rules and may not account for specific regulations or exceptions. Paydoz.com is not liable for any discrepancies or issues arising from the use of this tool.
What is NPS?
The National Pension System (NPS) is a government-sponsored pension scheme in India that aims to provide old-age income to citizens. It is a long-term retirement-focused investment plan that allows individuals to invest in a mix of equity, government securities, and corporate bonds.
How Does the NPS Calculator Work?
The NPS calculator helps you estimate your potential retirement corpus based on your current age, the annual or monthly contributions you plan to make, and the expected rate of return. By adjusting these parameters, you can see how your retirement savings can grow over time.
Key Features of NPS
- Flexible investment options: Choose between various asset classes including equity and fixed income.
- Tax benefits: Contributions to NPS are eligible for tax deductions under Section 80C and additional deductions under Section 80CCD.
- Long-term financial security: Designed to provide a steady income during retirement.
- Option for partial withdrawals: Allows you to withdraw a portion of your corpus under certain conditions.
How to Use the NPS Calculator
To use the NPS calculator:
- Enter your annual or monthly contribution amount.
- Specify the expected annual rate of return (between 8% and 15%).
- Provide your current age.
- Toggle between annual and monthly contributions as needed.
- Click 'Calculate' to see your estimated retirement corpus.
Understanding the Results
After clicking 'Calculate', you will see the following results:
- Total Investment: The total amount you would have invested by the retirement age.
- Interest Earned: The total interest generated on your investments over the years.
- Maturity Amount: The total amount available at retirement, combining your investments and earned interest.
- Minimum Annuity Investment: The portion of your corpus that is required to be used for purchasing an annuity.