NPS calculator: Step-wise process to use it online
Step 1: Visit the National Pension System Trust’s (NPS Trust) official website at www.npstrust.org.in.
Step 2: Click on ‘Subscriber’ and the ‘I am interested in NPS’ option.
Step 3: Click on the ‘Calculate the Pension Need’ option to reach the NPS calculator.
Step 4: The next page will show the NPS calculator with standard calculations. Input your details for your calculation.
Step 5: At this stage, provide the following details for the NPS calculator to calculate your pension savings:
- Date of birth: Based on this, the NPS calculator will reflect the number of years you will be able to contribute to the NPS.
- Investment amount: Enter your monthly contribution towards the NPS scheme.
- Expected return on investment: Choose the expected return on investment.
- Percentage of annuity to be purchased: The percentage of an annuity cannot be less than 40%.
- Expected annuity rate: Enter the expected rate of the annuity.
Once all the details are entered, the NPS calculator would show the details of your NPS account value at maturity.
How the NPS calculator computes your monthly pension?
Let us assume that Sunaina, 38, is a private sector worker. She has decided to invest in the NPS scheme now and plans to contribute Rs 2,000 monthly till she is 60. She expects a return on investment of 9% annually. She is buying an annuity for 40% and expects a 7% rate of return on the annuity.
Total years of contribution: 37
Total investment: Rs 8,88,000
Total corpus generated: Rs 71,44,746
Lump-sum value: Rs 42,86,848
Annuity value: Rs 28,57,898
Expected monthly pension: Rs 14,289