Use our free Atal Pension Yojana / APY Calculator to find your exact monthly contribution for a guaranteed pension. Plan your retirement in seconds.
Atal Pension Yojana (APY) Calculator
Calculate your contribution for a guaranteed pension.
Your Monthly Contribution
₹ —Contribution Period
— YearsYour Total Investment
₹ —Return to Nominee (Corpus)
₹ —What is an APY Calculator, and How Does it Help You?
An Atal Pension Yojana (APY) Calculator is a simple online tool that calculates the exact monthly contribution required to receive a guaranteed, fixed pension upon retirement.
It helps you by:
- Providing Clarity: It instantly shows the fixed amount you need to save each month, quarter, or half-year.
- Aiding Financial Planning: By knowing the precise contribution, you can easily budget for your retirement goal.
- Simplifying Decisions: It eliminates the need to look up complex government charts, making it easy to see how your age affects your contribution amount.
How to Use the Atal Pension Yojana Calculator
Using the calculator is a simple, three-step process:
- Enter Your Age: Input your current age. You must be between 18 and 40 years old to join the scheme.
- Select Your Desired Pension: Choose the fixed monthly pension you want after age 60. The options are ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000.
- Click Calculate: The tool will immediately display your required contribution, your total contribution period, and the corpus amount returned to your nominee.
Advantages of Using the Calculator
- Instant Results: Get your exact contribution amount in seconds.
- Error-Free Calculation: The tool uses official data, eliminating any chance of human error.
- Scenario Planning: Quickly change your age or desired pension to find a plan that fits your budget.
- Long-Term Vision: It helps you understand the total amount you will invest over the entire period.
How Does the Atal Pension Yojana Return Calculator Work?
This is a key point: the APY calculator is not a “return” calculator in the way a stock market calculator is.
The Atal Pension Yojana is a defined-benefit plan, which means the government guarantees the final pension amount. It does not depend on market performance. The calculator works simply as a lookup tool. It contains the official contribution chart from the PFRDA (Pension Fund Regulatory and Development Authority) and retrieves the pre-determined value based on your inputs.
Important: APY vs. APY
The next set of your questions seems to confuse two different terms that share the same acronym.
- APY (Atal Pension Yojana): The Indian government pension scheme discussed above.
- APY (Annual Percentage Yield): A financial term for the actual rate of return earned on an investment, taking into account compound interest.
The following answers are for Annual Percentage Yield.
What is 5% APY per month?
A “5% APY per month” is a contradictory and unrealistically high figure. APY is an annual (yearly) measure. A 5% interest rate compounded monthly would result in an APY of 79.59%, a return not typically found in stable investments.
How to calculate APY?
You can calculate the Annual Percentage Yield (APY) using this standard formula:
APY = (1 + r/n)ⁿ – 1
Where:
- r = The nominal annual interest rate (as a decimal).
- n = The number of times the interest is compounded per year.
Example: For a 6% nominal rate compounded monthly, the APY is (1 + 0.06 / 12)¹² – 1 = 6.17%.
What is 4% APY on ₹5,000?
A 4% APY on ₹5,000 means that over one year, your investment will earn ₹200 in interest.
- Calculation: ₹5,000 * 4% (0.04) = ₹200
At the end of the year, your total balance would be ₹5,200. The APY figure already includes all effects of compounding during the year.
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