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Atal Pension Yojana (APY) Calculator

Calculate the monthly APY contribution for your chosen pension (₹1K-₹5K) and entry age. Guaranteed pension from 60 under PFRDA.

Enter your values

years
18 years40 years

Result

Monthly contribution
₹376
for 35 years → ₹5,000 pension from age 60
Contribution years (until 60)
35 years
Total contribution
₹1,57,920
Target corpus at 60 (PFRDA standard)
₹8,50,000
Pension received (age 60-80)
₹12,00,000
₹5,000/month × 240 months
What this means

At age 25, choosing a ₹5,000 monthly pension requires ₹376 per month from now until age 60. Total contribution over 35 years: ₹1,57,920. From age 60 you receive ₹5,000 per month guaranteed, continuing to spouse after subscriber's death.

* Contributions deductible under Section 80CCD(1) within 80C ₹1.5L cap.

* Pension is fully taxable as income from age 60.

* Earlier entry = dramatically lower contribution. Joining at 25 vs 40 costs about 4× less per month.

Quick answer

Atal Pension Yojana (APY) is a government-backed pension scheme for the unorganised sector — guaranteed monthly pension of ₹1,000 to ₹5,000 from age 60. This calculator shows the monthly contribution required for your chosen pension and entry age.

What is APY?

APY is a low-cost pension scheme administered by PFRDA, targeted at workers in the unorganised sector. Subscribers between age 18-40 contribute a fixed monthly amount; from age 60 they receive a guaranteed monthly pension of ₹1,000 / ₹2,000 / ₹3,000 / ₹4,000 / ₹5,000 (their choice at enrolment). The pension continues to the spouse after the subscriber's death, and any remaining corpus is paid to the nominee.

Contribution amount depends on entry age and chosen pension. A 25-year-old choosing ₹5,000 pension pays ₹376/month for 35 years. A 40-year-old choosing the same pays ₹1,454/month for 20 years. Earlier you join, lower the contribution — the scheme rewards early enrolment dramatically.

How APY contribution is calculated

PFRDA publishes a contribution table mapping (entry age, pension amount) to monthly contribution. The amounts are pre-calculated to yield a target corpus of 170× the monthly pension at age 60 (e.g. ₹5K pension needs ₹8.5L corpus). Contributions earn ~8% pre-defined return.

Tax treatment: contributions qualify for Section 80CCD(1) deduction within the 80C ₹1.5L limit. Pension received from age 60 is fully taxable as income. The death benefit (corpus to nominee) is also taxable.

Formula
Monthly contribution depends on entry age + pension chosen (PFRDA published table)
Worked example
Entry age25 years
Pension chosen₹5,000/month
Contribution years35 years (until age 60)
PFRDA table → monthly contribution = ₹376
Total contribution = ₹376 × 12 × 35 = ₹1,57,920
Target corpus at 60 = ₹5,000 × 170 = ₹8.5 lakh
Pension lifetime (assume to 80) = ₹5,000 × 12 × 20 = ₹12,00,000
➜ ₹376/month for 35 years → ₹5,000 monthly pension from age 60

How to use this calculator

  1. Enter your current age

    Must be 18-40 to join APY. Once joined, you contribute until 60.

  2. Choose your target pension

    ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 per month. Higher pension needs higher contribution.

  3. Read the monthly contribution

    The calculator shows the exact monthly contribution from PFRDA's official table for your age and pension choice.

When to use it

Unorganised sector pension cover

Domestic workers, drivers, daily-wage workers — APY is one of the few formal pension schemes accessible to them. The government co-contributes 50% (capped ₹1,000/year) for the first 5 years if you joined before March 2016 and weren't a tax-payer.

Salaried workers in addition to EPF

Some salaried Indians use APY as a supplementary guaranteed-pension layer on top of EPF/NPS. The ₹5,000 cap limits it to a small percentage of retirement income for higher earners, but the guarantee is unique.

Common mistakes to avoid

Choosing the highest pension regardless of affordability

Skipping APY contributions damages the guarantee. Pick a pension level whose monthly contribution you can sustain for 20-40 years without interruption.

Treating APY as a substitute for NPS at higher incomes

₹5,000/month pension is meaningful for low-income retirees but insufficient for middle-class lifestyles. APY is a supplementary safety net, not a full retirement plan above ₹50K monthly expenses.

Frequently asked questions

Who can join APY?
Indian citizens aged 18-40 with a savings bank account. Auto-debit of contribution from the linked account. NRIs and tax-payers earlier (pre-2022) couldn't join — current rules allow tax-payers too.
Can I change my pension amount later?
Yes, you can upgrade or downgrade the pension level once per financial year. Contribution adjusts accordingly. If you downgrade, the excess contribution earned (plus interest) is refunded.
What happens if I die before 60?
The accumulated corpus is paid to the nominee. The spouse can continue contributions and receive the planned pension at age 60. If subscriber dies after 60, spouse receives the pension for life; on spouse's death the remaining corpus goes to the nominee.
Can I exit APY before 60?
Exit before 60 is allowed only for specified reasons (terminal illness, death). Voluntary exit before 60 isn't permitted unless you pay back the government co-contribution (if any was received) and forfeit accrued interest.
Is APY better than NPS?
APY: guaranteed pension, simple, low contributions. NPS: market-linked, no guarantee, higher potential returns, more flexibility. APY suits unorganised-sector or low-income earners wanting certainty; NPS suits salaried with longer horizons wanting upside.
What is the government co-contribution?
For subscribers who enrolled before 31 March 2016 and weren't income-tax-payers, the government contributed 50% of the subscriber's contribution or ₹1,000/year (whichever lower) for the first 5 years. The scheme is no longer offered for new enrolments.

References

Disclaimer: APY contribution table is set by PFRDA and revised occasionally. This calculator uses the standard table effective FY 2024-25 onwards. For exact contribution at enrolment, verify against your bank/Post Office's APY desk.

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