NPS Calculator

NPS Calculator

The National Pension System or NPS is a measure to introduce a degree of financial stability for Indian citizens after they have retired. This calculator is meant for Govt NPS subscriber where minimum age to enter is 18 years and the money saved will remain invested till 60 years. One cannot make withdrawal till attaining 60 years of age.

How to use NISM’s NPS calculator?

The NPS Calculator ask the user to enter following three inputs: –

1. Monthly Investment – The amount one wish to invest every month for a stated tenure.
2. Expected rate of return (per annum) – The interest rate one can expected on invested amount during the tenure of the investment.
3. Current Age – Since NPS account is only meant for subscribers between 18-60 years of age, this is an important input. The age entered by user decides the total tenure of the investment.

The NPS Calculator generates the following output for the user: –

• Total Invested – It let the user knows how much money s/he invested as principal amount during the investment period.
• Interest earned – It generates how much interest income added to investor portfolio on account of invested money.
• Maturity Value of Investment – It shows how much is the value of investor portfolio after the tenure of the investment. It includes the principal invested and interest earned thereon. In case of NPS, the maturity value of portfolio would be reached once subscriber attains the age of 60 years.

It calculates the interest amount based on compound interest. All the interest payments are considered as received at the end of the period.