# NPS Calculator

NPS Calculator is a tool that helps you calculate the maturity amount of your National Pension System (NPS) investment based on the investment amount, rate of return, and investment period. It can also be used to determine the monthly contribution required to achieve a specific retirement corpus.

To use NPS Calculator, follow these steps:

1. Go to any NPS Calculator website.
2. Select the type of account (Tier 1 or Tier 2) and the subscriber category (regular or NRI).
3. Enter your current age, retirement age, and the amount you plan to contribute each month/year.
4. Enter the expected rate of return on the investment and the investment period.
5. Click on the “Calculate” button.

The NPS Calculator will display the maturity amount of your NPS investment based on the details you entered. It will also show you the amount of investment required to achieve a specific retirement corpus and the monthly contribution required to achieve the desired corpus.

It’s important to note that the NPS Calculator is an estimate, and the actual returns on the NPS investment may differ based on various factors such as market conditions, inflation, and other risks. Therefore, it is always advisable to consult with a financial advisor and conduct thorough research before making any NPS investment decisions.

## NPS Calculation formula

The National Pension System (NPS) is a retirement savings scheme in which a subscriber can make contributions and receive a pension in their retirement years. The calculation of the NPS depends on various factors such as the investment amount, the rate of return, the investment period, and the type of account.

To calculate the NPS amount, the following formula can be used:

NPS Amount = (P * ((1+r/100) ^ n) * (1-(10/100)))

Where:

P: The amount of the monthly contribution made by the subscriber.
r: The expected rate of return on the investment.
n: The investment period in months.
10%: The fraction of the total corpus that can be withdrawn tax-free at the time of retirement.
For example, if a subscriber invests Rs. 10,000 per month in the NPS for a period of 30 years at an expected rate of return of 8%, the NPS calculation would be as follows:

NPS Amount = (10,000 * ((1+8/100) ^ (30*12)) * (1-(10/100)))
NPS Amount = Rs. 1,31,48,930

Therefore, the subscriber would receive a corpus of Rs. 1,31,48,930 at the end of 30 years, assuming an 8% rate of return and a monthly contribution of Rs. 10,000.

It is important to note that this formula provides an estimate of the NPS amount, and the actual returns may differ based on various factors such as market conditions, inflation, and other risks. Additionally, NPS investments are subject to fees and expenses that may impact returns. Therefore, it is always advisable to consult with a financial advisor and conduct thorough research before making any NPS investment decisions.