NPS Tier II Calculator

Project the growth of your voluntary, flexible NPS Tier II account — no lock-in, no mandatory annuity, withdrawable anytime.

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Enter your monthly contribution, expected return, and duration to project your NPS Tier II value — a flexible account with no lock-in or mandatory annuity.

Monthly contribution *

₹

Expected annual return *

Investment duration (years) *

Your result

₹1,13,96,626.62

Projected Tier II value

Total contributed₹18,00,000

Total returns₹95,96,626.62

AI explanation

Formula

Standard SIP future-value formula — Tier II has no lock-in or mandatory annuity, so it behaves like a flexible market-linked investment

Worked example

₹5,000/month for 30 years at 10% return

Worked example: ₹5,000/month for 30 years at 10% return
Field	Value
Monthly contribution	5000
Expected annual return	10
Investment duration (years)	30
Projected Tier II value	11396626.62
Total contributed	1800000
Total returns	9596626.62

Assumptions

Tier II has no lock-in and no mandatory annuity purchase — it can be withdrawn anytime, so its growth is modeled the same way as a regular SIP.
Requires an active Tier I account to open — cannot be opened standalone.
Assumes a constant monthly contribution and annual return — actual NPS Tier II returns are market-linked and will vary.

Frequently asked questions

Can I open an NPS Tier II account on its own?

No — a Tier II account can only be opened by someone who already has an active Tier I account, but once opened, Tier II funds can be withdrawn anytime with no restrictions.

Does NPS Tier II offer tax benefits?

Central government employees get an 80C deduction on Tier II contributions with a 3-year lock-in; other subscribers generally get no tax benefit on Tier II contributions, and returns are taxed as per applicable capital gains rules on withdrawal.

How is Tier II different from mutual funds?

Both are market-linked, but Tier II is regulated by PFRDA with typically lower fund management charges than most mutual funds, and offers similar equity/debt/government securities fund choices.

Related calculators

Sources

National Pension System — Tier II account rules — Pension Fund Regulatory and Development Authority (PFRDA). Effective 01-12-2009, reviewed 13-09-2026.

This is a projection based on a constant assumed rate of return. NPS Tier II returns are market-linked and will vary — not personalized investment advice.

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