Atal Pension Yojana, a government pension scheme launched in 2015, was introduced in the Union Budget of 2015-16 which encouraged individuals to save small amounts of funds & reap the benefits once they retire, through a monthly income. It is mainly targeted to the unemployed sector individuals. It is also a scheme for the private sector employees and no pension benefits.
The APY Calculator consists of 2 main components -
- The age at which an individual is applying.
- After 60 years, how much pension does an individual want to receive
- You can get your final outcome instantly
- Figure out your Total Investment Period.
- You can check whether the pension scheme aligns with your financial goals
- 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%.
At 60 years, an employee can choose to obtain a pension of either Rs. 1000, 2000, 3000, 4000 or 5000. This pension amount totally depends on the two factors mentioned above.This pension can also be claimed by his/her spouse if the account holder dies. The collected funds of the ATAL Scheme are maintained by Pension Funds Regulator Authority of India.
What is an APY calculator & how does it assist you?
APY 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. To get an instant answer, you can use this calculator according to your convenience. Also, you can know about how much interest an individual has earned on their pension. To avoid errors in mental calculation, you can use this APY calculator. This tool is beneficial for both public and private sector employees.
How does an APY calculator help you?
How does the Atal Pension Yojna Return Calculator works?
The calculator of this APY tool is based on 2 values- Interest & Compound Frequency.The greater the APY value, the better the offer. It is used by investors to depict the approximate pension as well as the lump sum funds which they can expect upon maturity or at the age of 60 years.
For example, we have three options below-
Among these 3 , the first option with the highest APY is the best offer.
How to use the Elearnmarkets Atal Pension Yojna Calculator?
To use the APY calculator, follow these two steps:
- Choose your desired monthly pension after 60 years
- The age at which you want to start investing
On selecting these, you can get an instant result on the calculated result of the monthly investment, investment duration and the total investment amount.
Are you confused between APY & Interest rate?
Read below to understand the difference between them.
Interest Rate Interest rate is the amount by which your investment will grow over a definite period of time. The time can be a week, a month or a year.
APY (Annual Percentage Yield)
A somewhat similar term to Interest rate, it is the amount by which the investment will grow over a period of time. It is a very precise metric that gets calculated only over a period of a year after taking compounding into account.
Atal Pension Yojana Calculator Chart
The Atal Pension Yojana calculation charts depict the monthly amount one has to contribute as per their entry age and choice of desired monthly income. Prices are indicative and are subject to change. This pension is payable to the pension holder, their spouse or their nominee.
What is the APY formula?
APY calculator formula is solely based on two values:
r – Interest Rate
n – Number of times interest is compounded per year
APY = (1 + r / n) n – 1
So, the generic thumb rule is - The higher the APY percentage, the better the investment deal.
Atal Pension Yojana Contribution Calculator FAQs
How do I calculate APY?
You can calculate Atal Pension Yojana (APY) through Elearnmarkets. Simply, follow these two steps:
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:
- Your monthly investment
- The duration of investment
- The total investment amount
No, this tool is completely free to use.
Does APY pay monthly?
Yes, Atal Pension Yojna is designed to pay a monthly amount of Rs. 1000 to 5000 as per the contributions made by the subscriber. The payments start at the age of 60 years. The spouse or nominee can claim the pension upon the death of the subscriber.
What will happen if I do not maintain the minimum balance in my bank account?
If you do not maintain the minimum balance in your bank account, then your APY account will get frozen after 6 months, deactivated after 1 year, and will be closed after 2 years.
How can the Atal Pension Yojana calculator help you?
The APY calculator helps you to:
- Determine the right period of investment (age)
- Determine the outcome of investment (Interest Earned)
- Align your financial goals & investments schemes
- Calculate monthly contribution amount as per the above
How can I open an APY account?
To open an APY account, simply visit the branch of the bank in which you hold a bank account and request for an APY application form. Fill the form and submit it along with necessary documents. Make sure you maintain the minimum balance in your account to open an APY account. If you meet the criteria, an APY account will get opened in your name.