APY Calculator

Atal Pension Yojana (APY) Calculator?

Atal Pension Yojana (APY) is a national pension scheme aimed at employees of the unorganised sector. APY is also open to the individuals working in the private sector who do not have any kind of formal pension provision. It was introduced by the Government of India in the Union Budget of 2015-16 to encourage individuals to save small amounts of funds & reap the benefits once they retire, through a monthly income.

The APY calculator is based on two parameters – the age of the applying individual & the pension they want to receive after the age of 60 years. The individual can choose a pension of Rs. 1000, Rs. 2000, Rs. 3,000, Rs. 4000 or Rs. 5000. The APY formula will take this into account as well as your current age and based on that your contribution to the scheme is defined.

In the case of the death of the APY scheme contributor, the pension can be claimed by the spouse or the nominee. The Pensions Funds Regulatory Authority of India (PFRDA) manages all the funds that are collected through Atal Pension Yojana.

What is the Atal Pension Yojana (APY) calculator?

Atal Pension Yojana calculator is an online tool that is used to calculate the real returns an individual can expect if they are investing in the APY scheme. It is an instant result based calculator that assesses how much interest can be earned on the basis of two parameters:

1. How much pension does the individual want to earn after retirement. This can range from a monthly income of Rs. 1,000 to Rs. 5,000.
2. The applicant’s age.

These two parameters are used to calculate the contribution that the individual is going to make and the interest he will then earn on it.

For example, Ms. Prachi is 30 years old. She wants to have a fixed pension of Rs. 5,000 per month once she is 60 years old. Now, in order to calculate her monthly investment & the period of time she will have to invest for, she will first input her age into the calculator – 30 years. She will then input the Rs. 5,000 she wants to receive in her Desired Monthly Pension and simply click calculate. Upstox’s APY calculator formula will compute the result, making her monthly investment Rs. 577 for a period of 30 years, making the total contribution she makes Rs. 2,07,720.

How does the APY calculator work?

Atal Pension Yojana calculator is used by investors to depict the approximate pension as well as the lump sum funds that they can expect upon maturity or at the age of 60 years. This is based on regular monthly contributions, a percentage of corpus reinvested for the purchase of annuities and the returns on it.

To use the calculator, there are only two steps to follow:

Step 1: Select your age

Step 2: Choose your required pension amount, upto a maximum of Desired Monthly Returns of Rs. 5,000

The calculator will then instantly show you:

1. Your monthly investment
2. The duration of investment
3. The total investment amount

The calculator does this based on primarily two values – Interest & Compound Frequency. 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, APY is 0.702%.

If the interest rate is 0.5% compounded daily, APY is 0.501%.

Of all three examples, the first option, with the highest APY is the best offer.

What is the APY formula?

APY calculator formula is based solely on two values:

r – Interest Rate

n – Number of times interest is compounded per year

APY formula:

APY = (1 + r / n) n – 1

The higher the APY percentage, the better the investment deal.

What are the benefits of using the APY calculator?

Atal Pension Yojana (APY) was introduced with the intention to provide a fixed monthly income between Rs. 1,000 & Rs. 5,000 to all those citizens of India who belong to the unorganised sector or do not have the provision of any formal pension coverage. All subscribers are eligible in between the ages of 18 – 40 years. The monthly income is decided upon their contribution. The Government of India co-contributes 50% of the contribution or Rs. 1,000 per annum, whichever is lower. This benefit is guaranteed by the Government of India.

The calculator – Atal pension Yojana is very beneficial because:

1. It lets one calculate the final outcome estimation & right period of investment. This in turn helps align your financial goals and your chosen pension scheme.
2. It helps in avoiding manual mistakes & gives an instantaneous estimate without needing to seek assistance.
3. It helps you determine the outcome and thus, effectiveness of your investment.
4. You can customise data as per your preferences.

What is the difference between APY and Interest rate?

Interest Rate:

Interest rate is the amount by which your investment will grow over a defined period of time. The time can be a week, a month or a year. You can compare this rise to past growth in your investment, but it may vary.

APY (Annual Percentage Yield):

Similar to interest rate, the APY is also the amount by which your investment will grow over time, but it is a very precise metric that is always calculated over the period of a year & takes compounding into account.

Atal Pension Yojana Calculator Chart

Atal Pension Yojana calculation charts depict the monthly amounts one has to contribute as per their entry age & choice of desired monthly income. These amounts are only indicative and are subject to change. This pension is payable to the pension holder, their spouse or their nominee.

Atal Pension Yojana Calculation Chart for desired monthly income of Rs. 1,000

Atal Pension Yojana Calculation Chart for desired monthly income of Rs. 2,000

Atal Pension Yojana Calculation Chart for desired monthly income of Rs. 3,000

Atal Pension Yojana Calculation Chart for desired monthly income of Rs. 4,000

Atal Pension Yojana Calculation Chart for desired monthly income of Rs. 5,000

Contribution range according to age

Why is Upstox the best Atal Pension Yojana calculator online?

Upstox is committed to providing a seamless experience when it comes to your finances. Our calculator is built with the best user interface, making it easy to use, speedy & comfortable. The Atal Pension calculator is designed to help you align your financial goals & current investments.