Wealth Math.

NPS vs PPF Calculator.

Compare the National Pension System (NPS) and Public Provident Fund (PPF) returns, maturity corpus, tax-saving efficiency, and liquidity rules side-by-side to make the optimal choice for your retirement.

Comparison Inputs

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Retirement Projection

For your tax bracket and age, NPS gives you ₹54,04,049 more at retirement.

Assuming a 30-year investment horizon, NPS yields a final corpus of ₹1,13,96,627 (at 10% p.a.) compared to ₹59,92,578 in PPF (at 7.1% p.a. compounded annually).

Corpus Breakdown at Age 60

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NPS vs PPF: Side-by-Side Comparison

Compare key parameters based on your input of ₹5,000/month over 30 years.

National Pension System (NPS)

Market-Linked
Total Invested:
₹18,00,000
Retirement Corpus:
₹1,13,96,627
Tax Benefit:
₹18,000 saved / yearDeductions under Sec 80C (up to ₹1.5L) + Sec 80CCD(1B) (extra ₹50,000) at your 30% slab.
Liquidity:
Low. Lock-in until age 60. Max 3 partial withdrawals allowed up to 25% of self-contributions for specific exceptions (marriage, education, home, critical illness).
Withdrawal Rules:
At age 60, up to 60% lump sum is tax-free. The remaining 40% (minimum) must purchase an annuity (monthly pension), which is taxed at your income tax slab rates.

Public Provident Fund (PPF)

Guaranteed / Govt Backed
Total Invested:
₹18,00,000
Retirement Corpus:
₹59,92,578
Tax Benefit:
₹18,000 saved / yearDeductions under Sec 80C (up to ₹1.5L) at your 30% slab. Maturity interest is 100% tax-free.
Liquidity:
Moderate. Lock-in of 15 years. Partial withdrawals allowed from the 7th financial year onwards (up to 50% of the balance at 4th preceding year or immediately preceding year, whichever is lower).
Withdrawal Rules:
PPF has EEE (Exempt-Exempt-Exempt) status. The entire maturity amount, interest accumulated, and lump-sum withdrawals are 100% tax-free.
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NPS vs PPF — Which is Better for Retirement?

The answer depends on your risk appetite and retirement timeline. PPF is ideal for conservative investors who want guaranteed, tax-free returns (currently 7.1% p.a., set quarterly by the government) with full withdrawal flexibility after 15 years. NPS suits those comfortable with market exposure — its equity component (up to 75% allocation in Tier-1 accounts) has historically returned 11–13% p.a. over long periods, significantly outperforming PPF over 20+ year horizons. The mandatory 40% annuity purchase at maturity is NPS's biggest drawback, as annuity payouts are fully taxable income.

Tax Benefits Compared

Both NPS and PPF offer substantial Section 80C benefits, but NPS goes further: contributions to NPS qualify for ₹1.5L deduction under 80C (shared with PPF, ELSS, etc.) plus an additional exclusive ₹50,000 deduction under Section 80CCD(1B), making NPS the only instrument with a total ₹2L deduction in a single financial year. PPF maturity proceeds are completely tax-free (EEE status — Exempt at investment, Exempt on returns, Exempt at withdrawal). NPS has EET status — only 60% of the maturity corpus is tax-free; the 40% annuity portion generates taxable income for life.

PPF Partial Withdrawal and Loan Rules

PPF offers more flexibility than most investors realise. From Year 7 onwards, you can withdraw up to 50% of the balance at the end of the 4th year (or the immediately preceding year's balance, whichever is lower). This makes PPF an excellent secondary emergency fund for long-term investors. Additionally, from Year 3 to Year 6, you can take a loan against your PPF balance at an interest rate of just 1% above the PPF rate — one of the cheapest borrowing options available in India. After the initial 15-year lock-in, the account can be extended indefinitely in 5-year blocks with or without further contributions.

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