PPF Calculator vs NPS Calculator — Side-by-Side Comparison
PPF gives a fixed ~7.1% p.a. with fully tax-free maturity (EEE), while NPS offers equity exposure (potential 10–12% CAGR) with an extra ₹50,000 deduction under Section 80CCD(1B). However, 40% of NPS corpus must be used to buy an annuity at retirement, which is taxable. Use both calculators to model your retirement corpus.
Ppf Calculator
Total Invested
₹22,50,000
Interest Earned
₹18,18,209
Maturity Value
₹40,68,209
PPF interest is compounded annually. Current rate: 7.1% p.a. (Q1 FY 2025-26). Minimum lock-in: 15 years. Interest is fully tax-exempt under Section 10(11).
Nps Calculator
Total Corpus
₹61,43,586
Est. Monthly Pension
₹12,287
Tax-Free Lumpsum (60%)
₹36,86,152
Annuity Fund (40%)
₹24,57,434
Equity assumed at 12% p.a., Debt at 7% p.a. Max equity allocation is 75% (Active choice). 60% lumpsum is tax-free; 40% must be used to buy an annuity (6% annuity assumed for pension estimate).
Frequently Asked Questions
Is PPF better than NPS for retirement?+
PPF is better for those who want zero risk and complete tax-free maturity. NPS is better for those who want higher returns and can accept the mandatory 40% annuity at exit. For most salaried individuals, using both — maxing PPF for safe EEE corpus and NPS for the extra ₹50,000 deduction — is the optimal strategy.
Can I invest in both PPF and NPS?+
Yes. You can contribute up to ₹1.5 lakh under Section 80C (which includes PPF) and an additional ₹50,000 under Section 80CCD(1B) exclusively for NPS. This means NPS gives you a deduction over and above the 80C limit.
Which gives higher returns — PPF or NPS?+
NPS (Tier-I, aggressive/equity allocation) has historically delivered 10–12% CAGR, significantly higher than PPF's ~7.1%. However, NPS returns are market-linked and not guaranteed. PPF returns, though lower, are government-guaranteed and fully tax-free at maturity.
Disclaimer: This comparison is for informational purposes only and does not constitute financial or medical advice. Always consult a qualified professional before making financial or health decisions.