Atal Pension Yojana (APY) Calculator
Calculate your monthly contribution for a guaranteed pension of ₹1,000 to ₹5,000 under APY.
APY Calculator
Govt. GuaranteedCurrent APY indicative rate: ~8%
Used to calculate corpus
Monthly Contribution
₹0
Total Invested
₹0
Corpus to Nominee
₹0
Contribution by Age (₹5,000 Pension)
See how starting earlier drastically reduces your monthly outgo
| Entry Age | Monthly Contribution | Total Invested | Corpus to Nominee |
|---|
How Atal Pension Yojana (APY) Works
Atal Pension Yojana is a government-backed pension scheme targeted at the unorganized sector. It guarantees a fixed monthly pension ranging from ₹1,000 to ₹5,000 after the subscriber reaches the age of 60. The pension amount depends on the subscriber's contribution and age of joining.
How APY Contribution is Calculated
Corpus = (Monthly Pension × 12) / Annuity Rate
Contribution = PMT(Return%, Tenure, 0, -Corpus)
The target corpus is the amount needed at age 60 that, when invested in an annuity, yields the desired monthly pension. Your monthly contribution is the SIP required to build that corpus over your remaining working years (60 - Current Age).
Example Calculation
For a 25-year-old seeking a ₹5,000 monthly pension at 8% returns:
• Target Corpus = (₹5,000 × 12) / 8% = ₹7,50,000
• Investing Period = 60 - 25 = 35 Years (420 Months)
→ Monthly Contribution: ₹330 (approx.)
→ Total Invested: ₹1,38,600
→ Corpus to Nominee: ₹7,50,000
Key Benefits of APY
- 1 Guaranteed Pension: The Government of India guarantees the minimum pension amount, making it a completely risk-free retirement savings tool.
- 2 Nominee Benefit: After the subscriber's demise, the spouse continues to receive the pension. After both pass away, the accumulated corpus is returned to the nominee.
- 3 Tax Benefit: Contributions to APY are eligible for deduction under Section 80CCD(1) of the Income Tax Act, up to ₹1.5 Lakh under the overall limit.
- 4 Low Contribution: Starting early (at 18) means you can secure a ₹5,000 monthly pension by contributing just ₹210/month.