NPS vs PPF Calculator

Retirement

Put the same monthly amount into the National Pension System and the Public Provident Fund and see how a market-linked corpus compares with a guaranteed, tax-free one over your investing horizon.

Free · No sign-up · Private6 min readUpdated 27 July 2026

In short: For the same monthly saving, NPS is market-linked (often assumed ~10% p.a.) and usually builds a larger corpus over long horizons, while PPF gives a guaranteed, fully tax-free (EEE) ~7.1% but is capped at ₹1.5 lakh a year; NPS adds an extra ₹50,000 deduction under 80CCD(1B) but forces 40% of the corpus into an annuity at retirement.

Your inputs

Results

NPS corpus

₹76,56,969

Market-linked

PPF corpus

₹53,26,631

Tax-free (EEE)

Difference

₹23,30,339

NPS minus PPF

Total invested

₹24,00,000

NPS vs PPF corpus over time

How the same monthly saving grows in market-linked NPS versus fixed-rate PPF.

Year-wise comparison

Year-wise comparison
Year	NPS corpus	PPF corpus
1	₹1,26,703	₹1,28,520
2	₹2,66,673	₹2,66,165
3	₹4,21,300	₹4,13,583
4	₹5,92,118	₹5,71,467
5	₹7,80,824	₹7,40,561
6	₹9,89,289	₹9,21,661
7	₹12,19,583	₹11,15,619
8	₹14,73,993	₹13,23,348
9	₹17,55,042	₹15,45,826
10	₹20,65,520	₹17,84,099

NPS assumes monthly compounding at the expected return; PPF assumes annual deposits compounding annually.

Formula

NPS = SIP formula (monthly); PPF = annual annuity (yearly deposits)

NPS: Monthly contribution compounded at the expected market return
PPF: Yearly deposit (12 × monthly) compounded annually at the fixed rate
r: Assumed annual return for each instrument
t: Investment horizon in years

Step-by-step calculation

Worked with the default values.

1
NPS corpus (monthly)
₹10,000/mo at 10% for 20 yrs
= ₹76,56,969
2
PPF corpus (annual)
₹1,20,000/yr at 7.1% for 20 yrs
= ₹53,26,631
3
Difference
NPS corpus − PPF corpus
= ₹23,30,339

How it works

NPS invests your monthly contribution across equity, corporate bonds and government securities, so the corpus is market-linked and compounds like a SIP.
PPF takes annual deposits (here modelled as your 12 monthly amounts) and compounds them once a year at a government-set, guaranteed rate.
At the end of the horizon, NPS typically shows a larger corpus over long periods thanks to equity exposure, while PPF delivers a smaller but fully tax-free and guaranteed amount.

Examples

₹10,000/month for 20 years (NPS 10%, PPF 7.1%)

NPS grows to about ₹76 lakh versus roughly ₹53 lakh in PPF — a gap of about ₹23 lakh.

₹5,000/month for 30 years (NPS 10%, PPF 7.1%)

NPS grows to about ₹1.13 crore versus roughly ₹64 lakh in PPF, as compounding widens the gap over time.

Understanding the NPS vs PPF Calculator

NPS versus PPF at a glance

Both the National Pension System and the Public Provident Fund are long-term, tax-advantaged ways to build a retirement corpus, but they work very differently. NPS is market-linked: your monthly contribution is spread across equity, corporate bonds and government securities, so the corpus grows like a SIP and its final value depends on how markets perform. PPF is fixed-rate: you deposit up to ₹1.5 lakh a year and it compounds annually at a government-set rate, currently 7.1%, with the entire outcome guaranteed. This calculator puts the same monthly amount into each and shows how the two corpora diverge over your chosen horizon.

Why NPS often wins on size, and PPF on certainty

Over long periods, the equity portion of NPS tends to compound faster than PPF’s fixed rate, so the NPS corpus is usually larger — and the gap widens the longer you stay invested. But that extra growth comes with market risk and a catch at the end: at 60, only 60% of the NPS corpus is a tax-free lump sum, while at least 40% must buy an annuity whose pension income is taxable. PPF, by contrast, is fully tax-free under the EEE regime and hands you the entire maturity amount with no annuity rule and no market risk.

Tax and access differences that matter

Deductions — both fall under the ₹1.5 lakh 80C limit, but NPS adds an exclusive ₹50,000 under 80CCD(1B).
Taxation — PPF is entirely tax-free; NPS is mostly tax-free but its annuity pension is taxed.
Cap — PPF is capped at ₹1.5 lakh a year; NPS has no upper limit.
Lock-in — PPF matures at 15 years; NPS locks until age 60.

How to use both together

For most investors the answer is not either-or. A sensible plan uses PPF as the guaranteed, tax-free debt anchor of the portfolio and NPS — with a healthy equity allocation while young — for market-linked growth and the extra deduction. That way you capture both the certainty of PPF and the growth potential of NPS, while spreading your money across a guaranteed and a market-linked bucket rather than betting everything on one.

Pros

NPS offers market-linked growth with equity exposure, often beating PPF over long horizons.
NPS adds a unique ₹50,000 deduction under 80CCD(1B), over and above the ₹1.5 lakh 80C limit.
PPF gives guaranteed, fully tax-free (EEE) returns with sovereign backing.
PPF has no market risk and full access to the corpus at maturity.
Both are low-cost, disciplined ways to build a long-term retirement corpus.

Cons

NPS returns are not guaranteed and can fall with the markets.
NPS forces at least 40% of the corpus into an annuity, whose pension is taxable.
PPF is capped at ₹1.5 lakh a year and returns are revised quarterly.
Both have long lock-ins — PPF for 15 years and NPS until age 60.

Tips

1Use PPF as your safe, tax-free debt anchor and NPS for market-linked growth — you do not have to pick just one.
2Claim the extra ₹50,000 NPS deduction under 80CCD(1B) after exhausting your ₹1.5 lakh 80C limit.
3In NPS, choose a higher equity allocation while young and glide to debt as you near 60.
4Deposit your full PPF amount before 5 April each year to earn a full year of interest.
5Review NPS fund performance and asset mix periodically, but avoid frequent switching.

Frequently asked questions

Everything you need to know about the NPS vs PPF Calculator.

What is the core difference between NPS and PPF?

NPS is a market-linked pension product whose returns depend on equity and debt performance, while PPF is a fixed-rate, government-guaranteed savings scheme. NPS can grow faster but carries market risk; PPF is safe but grows slower.

Which builds a bigger retirement corpus?

Over long horizons, NPS usually builds a larger corpus because of its equity exposure — the calculator shows the difference. However, that outcome is not guaranteed, whereas PPF’s return is locked in.

How are NPS and PPF taxed?

PPF is fully tax-free (EEE) — deposit, interest and maturity are all exempt. NPS gives you 60% of the corpus tax-free at 60, but the remaining 40% must buy an annuity whose pension income is taxable at your slab rate.

What tax deductions do they offer?

Both PPF and NPS contributions qualify under Section 80C (up to ₹1.5 lakh combined). NPS uniquely offers an additional ₹50,000 deduction under Section 80CCD(1B), making its total possible deduction ₹2 lakh.

Is there an investment cap?

PPF is capped at ₹1.5 lakh per financial year, which limits how much wealth you can build there. NPS has no upper limit on contributions, so high earners can invest far more.

When can I withdraw from each?

PPF matures in 15 years, with limited partial withdrawals from year 7. NPS locks money until age 60, after which 60% can be taken as a lump sum and 40% must be annuitised; only limited partial withdrawals are allowed before that.

What is the 40% annuity rule in NPS?

At retirement, at least 40% of your NPS corpus must be used to buy an annuity from an insurer, which pays you a regular pension. Only the remaining 60% is available as a tax-free lump sum. PPF has no such restriction — you get the full amount.

Which is cheaper to run?

NPS is one of the lowest-cost investment products in the world, with fund management charges of a fraction of a percent. PPF has no fund management cost at all, but its return is fixed rather than market-linked.

Can I invest in both NPS and PPF?

Yes, and many investors do. A common strategy is to use PPF as the guaranteed, tax-free debt anchor and NPS (plus equity funds) for market-linked growth, capturing the extra ₹50,000 NPS deduction on top of the ₹1.5 lakh 80C limit.

Which should I choose?

If you want guaranteed, fully tax-free returns and full access to your money at maturity, PPF fits. If you want potentially higher growth, a larger deduction and are comfortable with the annuity rule and market risk, NPS fits. Using both is often the most balanced approach.

Methodology & sources

How the NPS vs PPF Calculator is calculated, and where the underlying rules come from.

How we calculate it

Every result is produced by a single, shared and tested financial-formula library used across the whole site — so the maths is consistent from one calculator to the next. Figures are estimates based on the inputs you enter and standard assumptions (such as regular compounding and constant rates); real-world outcomes vary with taxes, fees and changing rates. All calculations run in your browser — nothing you type is stored or sent to a server.

Sources & references

Editorial policy & disclaimer. FinCalcHub provides free educational tools and estimates — not personalised financial, tax or investment advice. Verify important decisions with a qualified professional. Read our editorial approach, disclaimer and privacy policy.

Last reviewed for accuracy on 27 July 2026.

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