Welcome to the NPS Vatsalya Calculator ( a future retirement plan for your child), You just need to enter the date of birth of your child and the contribution per annum, this calculator will calculate the amount based on the return percentage that yo put and will show you the amount you’ll get when your child will turn to 18 years.
NPS Vatsalya Calculator
Understanding the NPS Vatsalya Calculator: A Simple Guide
If you’re planning for your child’s future, we have designed this NPS Vatsalya Calculator a helpful tool that estimates how much your investments can grow over time. Here’s how this calculation works, explained in easy-to-understand steps.
Also Read: How To Open NPS Vatsalya Account
Your Inputs To NPS Calculator
To use this calculator, you’ll need to input a few key details:
- Child’s Date of Birth: This helps in calculating how many years you have to invest.
- Contribution Amount: The exact amount you plan to invest each year.
- Annual Increase in Contribution: The percentage by which you intend to increase your contribution every year.
- Return on Investment (RoR): You can choose a standard rate (like 8%, 10%, or 12%) or you can enter a custom rate if you have a specific expectation of returns.
Step-by-Step Calculation
- Calculate the Age: The calculator starts by calculating your child’s current age based on the date of birth you entered.
- Investment Until Age 18:
- It calculates how much you will invest each year until your child turns 18. If you plan to increase your contribution annually, the calculator adjusts your investment amount for each year based on the percentage you mentioned.
- For example, if you start with ₹10,000 and increase it by 5% each year, your contributions will be ₹10,000 in the first year, ₹10,500 in the second year, and so on.
- Estimated Corpus at 18:
- After figuring out your total contributions until age 18, the calculator estimates how much that money will grow by the time your child turns to 18. This growth is calculated using the RoI you selected. It applies the return on investment to your contributions for each year until your child reaches 18.
- Growth from Age 18 to 60:
- Once your child turns 18, the calculator continues to project the growth of your investment until they turn 60. It assumes you keep contributing the initial amount each year.
- The calculator again applies the RoI to calculate how much the corpus will grow during these years.
- Final Results: The calculator will display:
- Total Investment by Age 18: How much you’ve contributed by the time your child turns to 18.
- Estimated Corpus at 18: The projected value of your investment when your child turns 18.
- Estimated Corpus at 60: The projected value of the investment by the time your child reaches 60 years of age.
Why NPS Vatsalya Is Important?
Using the NPS Vatsalya scheme you can secure your child’s financial planning. You can take the help of this calculator to understand how your contributions and the power of compounding can work together to secure your child’s future. With this information, you can make a good decision about your investment strategy and ensure you’re on the right path to achieving your financial goals.
Also Read: How To Open NPS Vatsalya Account
Give it a try today and see how your investments can grow over the years!