What is New NISA Calculator (2024)?
▾
The New NISA (Nippon Individual Savings Account, 新NISA) calculator helps Japanese investors understand their annual investment allowances, lifetime contribution limits, and tax-free growth potential under the redesigned NISA system that launched in January 2024. NISA is Japan's tax-free investment account programme, similar to the UK's ISA or the US's Roth IRA. In the new system, dividends, interest, and capital gains on investments held within NISA are completely exempt from the standard 20.315% tax that applies to regular investment accounts. The new NISA has two components that can be used simultaneously within the same account. The Tsumitate Investment Portion (つみたて投資枠) allows up to ¥120,000 per year in eligible long-term periodic investment products (approved index funds and similar). The Growth Investment Portion (成長投資枠) allows up to ¥2,400,000 per year in a broader range of securities. Together the annual limit is ¥3,600,000. The lifetime limit across both components is ¥18,000,000 — with the Growth Portion capped at ¥12,000,000 of the total. A key improvement in the 2024 system is that when you sell investments, the used contribution space is restored the following year based on acquisition cost, making the lifetime limit effectively reusable. This is a significant advantage over the old NISA which had no capacity restoration. Japan residents who are 18 years or older and have a Japanese address are eligible.
DigiCalcs delivers precision-engineered tools for engineers and STEM professionals.
Formula
▾
Annual Limit = Tsumitate ¥1.2M + Growth ¥2.4M = ¥3.6M; Lifetime Limit = ¥18M total (Growth capped at ¥12M); Tax Saved = Investment Return × 20.315%; Restored Space = Acquisition Cost of Sold Holdings (next year)How to New NISA Calculator (2024)
▾
- 1Open a NISA account at a securities firm (証券会社) or bank that offers the service.
- 2Allocate contributions between the Tsumitate Portion (eligible index funds only) and Growth Portion (stocks, ETFs, REITs, funds).
- 3Stay within the annual total limit of ¥3.6 million and the individual portion limits.
- 4Track your remaining lifetime space (maximum ¥18M minus total acquisition cost held).
- 5Receive dividends and realise capital gains completely free of the 20.315% tax.
- 6When you sell investments, the acquisition cost of the sold amount is restored to your lifetime allowance the following year.
- 7Continue using NISA every year; the account has no time limit under the new permanent rules.
Worked Examples
▾
Maximum new NISA contribution is ¥3.6M per year
Filling both NISA portions annually maximises lifetime limit of ¥18M. At full capacity with 5% return, annual tax-free returns would be ¥900K — saving ¥182K in tax that would otherwise be due.
Long-term compounding in NISA dramatically outperforms taxable accounts
Over 30 years at ¥50K/month, the NISA balance grows to ¥41.6M. Without NISA, the same investment in a taxable account would have had 20.315% tax on each year's gains, resulting in a significantly lower final balance.
Space restored based on acquisition cost not sale price
If you bought stock for ¥2M and sold it for ¥3M, your NISA space is restored by ¥2M (acquisition cost), not ¥3M (sale price). The ¥1M profit remains tax-free — it just does not restore additional space.
Tax-free compounding is significantly more powerful over long periods
Over 20 years, avoiding the 20.315% tax on gains means significantly more compounding. The NISA advantage grows larger the longer the investment period.
Real-World Applications
▾
Planning monthly investment amounts to fill both NISA portions and track lifetime limit usage., representing an important application area for the Nisa 2024 Calc in professional and analytical contexts where accurate nisa 2024 calculations directly support informed decision-making, strategic planning, and performance optimization
Calculating tax savings versus a standard taxable investment account over 20–30 years., representing an important application area for the Nisa 2024 Calc in professional and analytical contexts where accurate nisa 2024 calculations directly support informed decision-making, strategic planning, and performance optimization
Deciding the optimal product mix between Tsumitate index funds and Growth individual stocks., representing an important application area for the Nisa 2024 Calc in professional and analytical contexts where accurate nisa 2024 calculations directly support informed decision-making, strategic planning, and performance optimization
Modelling portfolio value at retirement based on NISA contributions and compound return., representing an important application area for the Nisa 2024 Calc in professional and analytical contexts where accurate nisa 2024 calculations directly support informed decision-making, strategic planning, and performance optimization
Planning NISA sales and space restoration to optimise lifetime contribution utilisation., representing an important application area for the Nisa 2024 Calc in professional and analytical contexts where accurate nisa 2024 calculations directly support informed decision-making, strategic planning, and performance optimization
Special Cases
▾
Junior NISA (ended 2023)
In the Nisa 2024 Calc, this scenario requires additional caution when interpreting nisa 2024 results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when nisa 2024 calculations fall into non-standard territory.
Carrying forward unused annual allowance
In the Nisa 2024 Calc, this scenario requires additional caution when interpreting nisa 2024 results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when nisa 2024 calculations fall into non-standard territory.
Overseas ETF dividends and withholding tax
In the Nisa 2024 Calc, this scenario requires additional caution when interpreting nisa 2024 results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when nisa 2024 calculations fall into non-standard territory.
Multiple NISA accounts
In the Nisa 2024 Calc, this scenario requires additional caution when interpreting nisa 2024 results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when nisa 2024 calculations fall into non-standard territory.
New NISA 2024 Structure
▾
| Feature | Tsumitate Portion (積立投資枠) | Growth Portion (成長投資枠) |
|---|---|---|
| Annual Limit | ¥1,200,000 | ¥2,400,000 |
| Lifetime Limit | ¥18M combined (shared) | ¥12M cap within ¥18M |
| Eligible Products | Approved index funds and ETFs only | Stocks, ETFs, REITs, most funds |
| Tax Treatment | Dividends + gains tax-free | Dividends + gains tax-free |
| Space Restoration | Yes — next year after sale | Yes — next year after sale |
| Duration | Permanent (no expiry) | Permanent (no expiry) |
Frequently Asked Questions
▾
What is the new NISA allowance for 2024?
Japan's NISA (Nippon Individual Savings Account) was significantly reformed starting January 2024. The new NISA combines two investment tiers: Tsumitate (accumulation) NISA with a ¥1.2 million annual limit for index funds and diversified funds, and Growth NISA with a ¥2.4 million annual limit for individual stocks and a broader range of funds. The total lifetime investment cap is ¥18 million (¥6 million Tsumitate + ¥12 million Growth). All investment gains and dividends within NISA are permanently tax-free (normally taxed at 20.315% in Japan). The new NISA has no time limit — previous NISA accounts had 5 or 20-year tax-free periods.
How should I use the new NISA strategically?
Maximize the Tsumitate tier first (¥1.2M/year in low-cost index funds) for its simplicity and broad diversification. Popular choices: eMAXIS Slim All-Country or eMAXIS Slim S&P 500 for global/US equity exposure at 0.05-0.09% expense ratios. Then use Growth tier for satellite positions in individual stocks or sector-specific funds. At maximum contribution (¥3.6M/year), you'll fill the ¥18M lifetime cap in 5 years. If you sell investments, the purchase amount is recycled back into your available lifetime limit the following year — unlike the old NISA. This means NISA effectively has unlimited tax-free investing over time, making it one of the most generous tax-advantaged investment accounts globally.
What are the key differences between the old NISA and the new NISA launched in 2024?
The new NISA has a higher annual investment allowance of 1.2 million yen for general accounts and 2.4 million yen for special accounts, compared to the old NISA's 1.2 million yen and 2.4 million yen limits, respectively, but with more flexible investment options. Additionally, the new NISA has a lifetime contribution limit of 24 million yen, and it allows for tax-free growth on investments held for at least 5 years. This redesigned system aims to encourage long-term investments and provide more benefits to Japanese investors.
How does the new NISA system impact tax implications for investors?
Under the new NISA system, investments are exempt from income tax and capital gains tax if held for at least 5 years, with some exceptions for dividends and interest income. For example, if an investor earns 10% annual returns on their NISA investment, they can potentially save up to 20.42% in taxes on their investment gains, depending on their tax bracket. This tax-free growth can significantly boost investors' overall returns over time.
Can I transfer my existing NISA account to the new NISA system, and what are the implications?
Yes, you can transfer your existing NISA account to the new NISA system, but you should consider the implications on your investment strategy and tax obligations. For instance, if you transfer your account, you may be able to take advantage of the new system's higher annual investment allowance and more flexible investment options. However, you should also be aware that transferring your account may reset the 5-year tax-free growth period, potentially impacting your tax obligations.
Common Mistakes to Avoid
▾
- !Contributing to both Tsumitate and Growth in excess of the annual ¥3.6M combined limit — over-contribution requires corrective action.
- !Assuming NISA losses can offset gains in regular accounts — they cannot; NISA is a separate tax wrapper.
- !Not tracking remaining lifetime allowance when making new contributions after selling investments.
- !Leaving NISA funds in low-return money market or deposit products — NISA's power is in tax-free compounding of equity returns.
- !Opening NISA at a bank with limited fund selections instead of a low-fee online securities firm with full product lineup.
Pro Tip
For most investors, prioritise filling the Tsumitate Portion with a global stock index fund (e.g., eMAXIS Slim All Country) each month. The simplicity, low cost, and automatic monthly investment habit are more important than sophisticated stock selection. Add Growth Portion contributions for individual stocks or ETFs once the Tsumitate is maxed out.
Did you know?
Japan's NISA programme has attracted massive participation since the 2024 reform. Within the first 3 months of the new NISA launch, over 11 million accounts were opened and ¥3 trillion was invested — far exceeding government projections. Japan's household savings, long held in low-yield bank deposits, are finally moving toward equity markets at a historic pace, in part driven by the new NISA's improved terms.
References
Have a question about this calculator? Get a detailed answer.
Get Weekly Math Tips
Join 12,000+ subscribers who get calculator tips every week.