NPS Calculator

The National Pension Scheme, also known as National Pension Plan, remains open to all the people working in the private sector, public sector or even from the unorganized business domain, except for people serving in the armed forces. Furthermore, in the National Pension Scheme, the investors must make a minimum investment of INR 6,000 every financial year, paid either lump sum or easy monthly instalments. 

Also, you must know that the subscriber contributions made to the National Pension Scheme generally get invested in the various market-linked financial instruments such as equity or debt, and the returns you earn usually depend on how well these market-linked investments perform. 

The prevailing NPS interest rate is 8-10%, and any Indian resident between 18 to 60 years can readily invest their funds by opening a National Pension Scheme account. Apart from that, the NPS scheme allows investors partial money withdrawals of up to 25% of the sum invested after three years of opening a national pension scheme. Moreover, computing this sum has become seamless with an NPS calculator that helps you get the exact withdrawal figure with just one click. 

NPS pension calculator lets a person calculate the temporary lump sum and pension sum an investor, under NPS (National Pension Scheme), can anticipate at retirement based on the sum they invest monthly. In addition, the National Pension Scheme calculator only displays the expected pension and does not ensure the precise figure. 

In simpler terms, a pension calculator refers to an online tool that assists investors in getting an accurate assessment of the capital accumulated, maturity sum of the whole investment, and monthly pension sum the investors will receive.

Furthermore, this sum is calculated based on the contribution towards the National Pension Scheme and investment duration. The capital earned is due to the power of compounding which makes the National Pension Scheme a lucrative retirement fund plan.  And the more a person invests their funds in a National Pension Scheme, the more the collected sum and the retirement advantage of the accumulated pension capital. 

Apart from that, the NPS (National Pension Scheme) calculator helps an investor calculate the sum invested and the final returns to accomplish the financial objectives. Any person eligible to invest funds in the National Pension Scheme can use the NPS pension calculator. Also, any investor who likes to invest their funds and get an accurate estimation of the NPS investment can use the NPS calculator. 

Using the 5Paisa Pension calculator is exceptionally seamless, and you can calculate your returns using the following steps: 

• Choose the investment mode i.e. yearly or monthly
• Once you choose the investment type, you need to enter the yearly or monthly sum
• Before using the 5Paisa pension calculator, ensure that the present age of the investor should be more than 18 years and less than 60 years
• The withdrawal percent you want on retirement from the National Pension Scheme account

Once you enter all these above details, the 5paisa Pension Calculator will calculate the following:

• The total sum invested in the National Pension Scheme and investment term
• The wealth accumulated
• The monthly pension after retirement

Just like every other investment plan in India, the pension plan calculator also works on the compounding principle to get the perfect estimate of the returns. The formula to calculate NPS is as follows: 

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

Here, 

“A” stands for the amount

“P” stands for Principal Sum

“r” stands for Rate of Interest

“t” stands for the total duration

Note: An investor must enter the yearly or monthly investment sum and the withdrawal % on retirement and current age (>= 18 years) for better calculation. 

While there are several advantages of using the 5paisa Pension calculator online, some of the prominent ones are as follows: 

• The 5paisa Pension plan calculator is readily available for use on any mobile or web device. 
• The monthly Pension calculator makes the complicated job of calculating the retirement wealth and other details of the National Pension Scheme effortless. 
• 5paisa pension calculator online assists investors in overall financial planning by helping you with retirement estimates. Investors can then independently concentrate on their other economic purposes.
• With the 5paisa pension calculator, you can access an automated tool that helps you estimate the NPS earnings based on different systems and evaluate the wealth created through National Pension Scheme investments. In addition, it assists investors in calculating the lump sum and assistance that can be acquired by the investor, given the 5paisa NPS calculator's power to perform scenario analysis.
• The pension calculator online offers investors an alternative to assessing the NPS investment sum necessary to attain the expected retirement wealth.

The National Pension Scheme (NPS) does have a minimum contribution requirement. The amount varies for both NPS Tier-I and Tier-II accounts.  

Minimum contribution for National Pension Scheme Tier-I

At the time of registering for an NPS Tier-I account, an investor must commit to contributing a minimum of INR 500 to get started. A Tier-I account is a type of retirement savings account, where you can withdraw 60% of the corpus on maturity. The remaining 40% will be paid out in the form of a monthly pension. You can not prematurely withdraw money from this account before the age of 60 years.  

NPS Tier-I account additional facts:

• The minimum amount per contribution: INR 500
• The minimum amount that must be contributed per financial year for the account to stay active: INR 1000
• Ensure that at least one minimum contribution is made every financial year until you turn 60 years

Minimum contribution for National Pension Scheme Tier-II

On the other hand, the minimum contribution required to open an NPS Tier-II account is INR 1,000. In this case, one can withdraw funds before the age of 60 years. It takes about working three days to hit one's account. However, to optimize the opportunity, try not to make premature withdrawals, and build a consistent saving habit. On maturity, you can withdraw the full corpus, or make multiple withdrawals, as per your needs.  

NPS Tier-II account additional facts:

• The minimum amount per contribution: INR 250
• There is no requirement to contribute every year

For the NPS Tier-II account, contribution rules are relaxed and one does not need to contribute each year. However, it is advisable to build a saving habit, make some contributions and make the most of your NPS account.