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NPS Tier 2 vs Mutual Fund Calculator India

Compare monthly investing in NPS Tier 2 and an equity mutual fund using return and withdrawal-tax assumptions for each route.

Written and reviewed by RupeeKit Editorial TeamLast reviewed 5 August 2026Report a correction
Indian couple comparing two long-term monthly investment paths on a sunny apartment balcony
Indian couple comparing two long-term monthly investment paths on a sunny apartment balcony

Educational estimate only

Results can vary based on company policy, lender terms, tax law, and personal assumptions.

See the Source and methodology section below for details.

Enter your values

Estimated results

Total contributions

₹18,00,000

NPS Tier 2 gross corpus

₹41,79,243

Mutual-fund gross corpus

₹50,45,760

Illustrative NPS Tier 2 tax

₹4,75,849

Illustrative mutual-fund tax

₹4,05,720

NPS Tier 2 post-tax corpus

₹37,03,394

Mutual-fund post-tax corpus

₹46,40,040

Mutual-fund minus NPS post-tax value

₹9,36,646

This calculator gives an educational estimate. Verify final numbers with your payslip, lender, tax advisor or official source.

Result visual

Relative view of your key outputs. Exact values are listed with each bar.

Inputs used in this result
Monthly contribution
10,000 Rs
Investment period
15 years
Expected NPS Tier 2 return
10 %/year
Expected equity-MF return
12 %/year
Assumed NPS Tier 2 tax on gains
20 %
Assumed mutual-fund tax on gains
12.5 %

Share/print output contains user-entered values and educational estimates only. Verify important decisions with the relevant official source or professional.

💡 Educational Estimates Only

This visual breakdown and compounding model is for educational understanding only. Actual outcomes can vary depending on interest accrual dates, taxation brackets, processing fees, and individual employer/lender terms.

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NPS Tier 2 vs mutual-fund scenario

Quick Answer

What question does this calculator answer? It compares recurring investments in NPS Tier 2 and a mutual-fund scenario using separate return and user-entered withdrawal-tax assumptions. It is a product-route comparison, not a generic SIP calculator.

Tax treatment and product rules can change. Verify current NPS and mutual-fund rules before acting on an estimate.

Answer Engine Summary

This calculator estimates Total contributions, NPS Tier 2 gross corpus, Mutual-fund gross corpus, and Illustrative NPS Tier 2 tax using Monthly contribution, Investment period, Expected NPS Tier 2 return, and Expected equity-MF return. Uses monthly annuity-due compounding for each return assumption, then applies the entered illustrative tax rate only to estimated gains at withdrawal. Results are educational estimates only and should be verified with official records, lender statements, payroll data, or filing utilities where applicable.

Formula used

Uses monthly annuity-due compounding for each return assumption, then applies the entered illustrative tax rate only to estimated gains at withdrawal.

Example calculation

Changing either expected return or the assumed tax rate can materially alter the post-tax comparison over a long holding period.

A product-route comparison, not a generic SIP forecast

This calculator exists for the specific NPS Tier 2 versus mutual-fund decision. The generic SIP calculator intentionally avoids product-specific tax assumptions and should remain the destination for a plain monthly-investment projection.

Source and methodology

Last reviewed: August 2026

This calculator uses the formula and assumptions described on this page. Uses monthly annuity-due compounding for each return assumption, then applies the entered illustrative tax rate only to estimated gains at withdrawal. Values are calculated in-browser from user-entered inputs and are not saved by default. Verify tax, regulatory, lender, scheme or product rules with the relevant official source where applicable.

Educational estimate only. RupeeKit does not provide personalized financial, investment, legal, tax or loan advice.

Related calculators and guides

You can cross-check this estimate using: salary in-hand calculator, Old vs New Tax Regime Calculator, 80C deduction calculator, EMI calculator, ITR-2 filing guide, emergency fund guide.

When this tool is useful

  • When you want a fast estimate before making a financial or salary decision.
  • When you want to compare different assumptions in seconds.
  • When you want to understand the formula behind the result.

Calculator Facts

TopicRupeeKit explanation
Calculation typeFormula-based educational estimate from user-entered values
Key inputsMonthly contribution, Investment period, and Expected NPS Tier 2 return
Primary outputsTotal contributions, NPS Tier 2 gross corpus, and Mutual-fund gross corpus
Method referenceUses monthly annuity-due compounding for each return assumption, then applies the entered illustrative tax rate only to estimated gains at withdrawal.
PrivacyValues are processed in the browser and are not saved by default.

FAQs

Does NPS Tier 2 have the same tax benefit as NPS Tier 1?

Do not assume so. Tier 2 liquidity and tax treatment differ from Tier 1 and can depend on investor category and current rules.

Are the entered tax rates applied to the whole corpus?

No. This simplified model applies each entered rate only to estimated gains, not to contributed principal.

Why not use the regular SIP calculator for NPS Tier 2 vs mutual fund?

The regular SIP page models one fixed monthly investment stream. This comparison keeps two product routes side by side and lets you enter separate return and tax assumptions.

Are the tax assumptions in this calculator permanent rules?

No. They are user-entered scenario assumptions. Verify current tax treatment and NPS rules for your situation before making a decision.