NPS Vatsalya Calculator

NPS Vatsalya has no fixed interest rate. Returns are market-linked: they depend on the pension fund you choose and how it invests, across equity, debt, government securities and money market instruments. A pension fund's own NPS Vatsalya scheme can hold up to 100% in equity; the standard mix allows up to 75%.

The calculator starts at 12% a year. Change it between 4% and 14% to see a cautious or a hopeful estimate. Each pension fund's actual returns are published on the NPS Trust website.

Enter your child's age (1 to 17), how much you will invest and how often (monthly, quarterly or yearly), and the age your child will retire at (18 to 75). The calculator grows each contribution at the expected return, compounded every period, and shows the corpus at 18 and at retirement.

It uses 20% of the retirement corpus to buy an annuity at 6% (both can be changed). If the corpus is below ₹8 lakh, it shows the whole amount as a lump sum.

Two things to keep in mind: the calculator assumes you keep contributing until the retirement age you enter, while contributions to NPS Vatsalya itself stop when the account moves to NPS between 18 and 21. And the amounts are in future rupees, not adjusted for inflation.

₹1,000 a month from age 1 grows to about ₹6.68 lakh by 18 and ₹11.57 crore by 60, at a 12% return. With the calculator's starting assumptions (20% of the corpus in an annuity at 6%):

The figure at 60 assumes contributions continue all the way to 60 and is not adjusted for inflation, so it is much larger than what the same money will buy today.

The account does not close or convert on its own at 18. Your child completes fresh KYC and adds nominees, and the account stays in NPS Vatsalya until 21. Between 18 and 21 they can:

• move the whole corpus to NPS (All Citizen Model), or
• withdraw up to 80% as a lump sum and use the rest to buy an annuity, or
• withdraw all of it, if the corpus is below ₹8 lakh.

If no option is chosen by 21, the account moves to a higher-equity NPS scheme with the same pension fund. Without KYC, no transactions are allowed and the account becomes dormant at 21.

It suits long-term saving that you will not need before your child turns 18. Weigh these points:

• Returns are market-linked and not guaranteed; the money can be invested up to 100% in equity.
• Money is locked until 18, apart from limited partial withdrawals after 3 years.
• The tax deduction is available only under the old tax regime.
• At 18–21 the corpus can be withdrawn in full only if it is under ₹8 lakh; otherwise up to 80%, or it moves to NPS.

For a fuller comparison, read NPS Vatsalya pros and cons.

Section references are to the Income-tax Act, 2025. More in tax benefits of NPS Vatsalya.

• Yes, after the account is 3 years old.
• Up to 25% of the contributions (not the returns), for the child's education, treatment of a specified illness, or disability of more than 75%.
• Up to 2 withdrawals before 18, and 2 more between 18 and 21 after fresh KYC.
• Partial withdrawals are tax-free.

See NPS Vatsalya withdrawal rules for the process.

• A parent or legal guardian, for any Indian citizen under 18, including NRI and OCI children. One account per child; a new account cannot be opened at 18 or later.
• ₹250 to open the account, and at least ₹250 a year after that. There is no maximum.
• Relatives and friends can also contribute, and missing a year does not deactivate the account before 18.
• NRI and OCI children need their own or a joint NRE/NRO bank account.