APY Calculator
Calculate your Atal Pension Yojana contribution and contribution period by entering your scheme joining age and desired monthly pension.
Enter your details to calculate
Total Amount
₹ 31,920
Monthly Investment
₹ 76
Investment Duration
35 Yrs
Atal Pension Yojana (APY) is a government-backed pension scheme launched in 2015 that aims to provide old-age income security, particularly to workers in the unorganised sector.
Indian citizens aged 18 to 40 years can join APY, subject to the eligibility conditions. From 1 October 2022, an individual who is or has been an income-taxpayer is not eligible to open a new APY account. APY is open to eligible individuals irrespective of their employment status, including private-sector employees, provided they meet the scheme's eligibility requirements.
The scheme was introduced to encourage workers to invest and financially secure their retirement by providing a monthly income.
The APY calculators require you to enter the APY joining age and desired monthly pension to calculate the prescribed contribution, contribution period, and total investment amount. The subscriber can choose a guaranteed minimum monthly pension ranging from ₹1,000 to ₹5,000 after the age of 60, depending on the selected pension amount and applicable contributions.
Funds collected under the Atal Pension Yojana are invested in accordance with the investment guidelines prescribed by the Pension Fund Regulatory and Development Authority (PFRDA), focusing heavily on safer, fixed-income assets and government securities.
The pension payable under APY is a guaranteed minimum pension and is not presented as a return that increases or decreases based on investment performance. The central government guarantees the selected minimum pension, subject to the scheme's terms and conditions.
In the case of the death of the APY scheme contributor, the spouse can receive the same pension amount as the subscriber until the spouse's death. After the death of both the subscriber and spouse, the nominee is entitled to receive the pension wealth accumulated until the subscriber reaches age 60.
What is the Atal Pension Yojana (APY) calculator?
Atal Pension Yojana Calculator is an online investment planning calculator that helps determine the contribution amount and contribution period required to secure the desired monthly pension after retirement. This helps you understand the contribution required under the APY scheme.
The APY calculator offers quick calculations based on the age at which you join the scheme and the pension amount you select.
How Does the APY Calculator Work?
Individuals use the Atal Pension Yojana calculator to determine the contribution amount and contribution period required to get the monthly pension payment they want after retirement.
You must enter the age at which you join the APY scheme and the monthly pension payout you want after retirement. The APY calculator will instantly calculate the amount you must contribute and the contribution period.
How to Use the Atal Pension Yojana Calculator?
Follow the steps below to use the Atal Pension Yojana calculator.
- Step 1: Select the age at which you start the APY scheme. You can either slide the slider to enter your age in the box.
- Step 2: Choose the required pension amount you want. You can select a maximum desired monthly pension of ₹5,000.
The APY calculator will then instantly estimate the following:
- Your contribution amount
- The contribution period
- The total contribution
The contribution amount is determined by the subscriber's age at entry and the selected pension amount. Contributions can be made monthly, quarterly, or half-yearly through auto-debit.
For example, a person joining APY at age 20 and choosing a ₹5,000 monthly pension would contribute ₹248 per month. The contribution period would be 40 years, until the subscriber reaches age 60.
The greater the APY value, the better the offer. For example:
- If the annual interest rate is 1%, the APY is 1%.
- If the interest rate is 0.75% compounded quarterly, the APY is 0.702%.
- If the interest rate is 0.5% compounded daily, the APY is 0.501%.
The contribution amount is based on the prescribed APY contribution table and is not calculated using an assumed interest rate or compounding frequency.
What is the APY formula?
The Atal Pension Yojana does not use a conventional interest-compounding formula to determine the contribution amount. The applicable contribution is based on the subscriber's age at joining and the selected pension amount.
Based on two core values, the APY calculator uses the following formula to determine the total maturity amount, monthly investment, and tenure.
APY = (1 + r / n)^n − 1
Where,
- r - Interest Rate on the APY investment.
- n - Number of times interest is compounded per year.
The higher the APY percentage, the higher the effective annual return, assuming the underlying nominal interest rate and other factors are comparable.
Benefits of Using the APY Calculator
The following are the benefits of using the Atal Pension Yojana Calculator.
Exact Contribution Estimates
The Atal Pension Yojana calculator instantly and accurately calculates how much money you need to contribute and for how long to get the desired monthly pension amount.
Better Financial Planning
The calculator shows the contribution period and total contribution required until you reach age 60. This allows you to plan for retirement.
Encourages Early Saving
You can start investing in the Atal Pension Yojana at 18 years, and joining at a younger age generally means a lower contribution for the same pension amount.
For example, if you're 20 years old seeking a ₹5,000 per month pension, you would need to invest ₹248 monthly for 40 years to secure the selected ₹5,000 monthly pension from age 60.
Saves Time and Eliminates Errors
The APY calculator compounds your investments to instantly and accurately estimate the total investment amount at maturity and the monthly investment required. This not only saves time but also eliminates calculation errors arising from manual calculations.
Frequently Asked Questions
What is an APY calculator?
How to use the Atal Pension Yojana calculator?
What is the formula used for calculating APY?
Can I apply for APY if I already invest in the National Pension Scheme (NPS)?
Who can apply for Atal Pension Yojana?