NPS vs PPF Calculator
Compare the retirement corpus from NPS and PPF for the same monthly saving.
PPF allows up to ₹1,50,000 a year; amounts above that only go to NPS in real life.
PPF runs 15 years and extends in 5-year blocks.
Official rate this quarter: 7.1%.
An assumption — NPS is market-linked.
Part of the NPS corpus that must buy a pension.
Quick examples
Saving ₹10,000 a month for 25 years: PPF at 7.1% vs NPS at an assumed 10%.
What each result means
PPF maturity
What it is: Yearly deposits compounded at the PPF rate.
Your value: ₹82,46,412
Government-backed, tax-free.
NPS corpus
What it is: Monthly contributions at the assumed return.
Your value: ₹1,33,78,903
Market-linked, not guaranteed.
NPS cash at exit
What it is: NPS corpus minus the annuity share.
Your value: ₹80,27,342
Compare with the PPF maturity for cash in hand.
Total saved
What it is: Same amount in both.
Your value: ₹30,00,000
Your own money.
Year-by-year breakdown
| Year | Total saved (₹) | PPF balance (₹) | NPS corpus (₹) |
|---|---|---|---|
| 1 | ₹1,20,000 | ₹1,28,520 | ₹1,26,703 |
| 2 | ₹2,40,000 | ₹2,66,165 | ₹2,66,673 |
| 3 | ₹3,60,000 | ₹4,13,583 | ₹4,21,300 |
PPF: monthly saving × 12 deposited at the start of each year, compounded yearly. NPS: deposited monthly, compounded monthly.
Showing the first 3 of 25 years. Want charts, formulas and the full schedule? Get the detailed PDF.
What this calculator does
This compares saving the same monthly amount in PPF (fixed government rate, tax-free, full cash at maturity) and NPS (market-linked, part must buy a pension).
What your result means
NPS can end higher if markets do well, but only part is cash. PPF is lower but certain at the current rate, and fully liquid at maturity.
Formula
1. Both balances
Symbols
- M
- Monthly saving (₹)
- p
- PPF rate (decimal)
- i
- NPS monthly return
- n
- Years
Why this formula works
PPF credits interest yearly; NPS units grow continuously, modelled monthly.
Unit check
₹ = ₹ × (no unit). ✓
Common mistakes
Comparing the whole NPS corpus with PPF — the annuity part is not cash.
Working for your numbers
- PPF = ₹82,46,412
- NPS = ₹1,33,78,903
- NPS cash = ₹1,33,78,903 × 60% = ₹80,27,342
Frequently asked questions
Which is better?
Neither is better for everyone. PPF gives certainty and liquidity; NPS gives market exposure and extra old-regime deductions but locks money until 60. This tool only shows numbers.
Does this calculator tell me what to do?
No. It is an educational estimate using published rules. It does not know your full situation. For a personal decision, speak to a qualified tax professional or a SEBI-registered investment adviser.
Symbols and assumptions
- M
- Monthly saving (₹)
- p
- PPF rate (%)
- r
- NPS return (%)
- Rates stay the same for the whole period.
- PPF is extended beyond 15 years where needed.
- Tax and fees are ignored.
- Figures are in Indian Rupees (₹).
Sources and review
Reviewed 2026-10-05 · Next review 2026-12-31
- National Savings Institute — small savings schemes
- PFRDA — Pension Fund Regulatory and Development Authority
- NPS Trust — returns and scheme information
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How it works
PPF pays a fixed rate announced by the government each quarter and credits interest once a year, and the maturity amount is tax-free. NPS is market-linked, so its corpus depends on the return your funds actually deliver; at 60 at least 40% of it must buy an annuity and the pension from that annuity is taxable.
The formula
PPF: FV = A × [((1+r)^n − 1) / r] × (1+r) · NPS: FV = P × [((1+i)^m − 1) / i] × (1+i)- A
- Yearly deposit into PPF
- r
- PPF annual interest rate
- P
- Monthly contribution to NPS
- i
- Monthly return = annual return ÷ 12
- m
- Total months invested
Worked example
₹10,000 a month for 25 years builds roughly ₹82 lakh in PPF at 7.1% and about ₹1.3 crore in NPS at an assumed 10%, of which 40% must buy a pension.
Pro tips
- PPF suits money you want guaranteed and tax-free; NPS suits long horizons where you accept market risk.
- Many people use both, PPF for the safe base and NPS for the extra 80CCD(1B) deduction.
Common mistakes
- Treating the assumed NPS return as guaranteed.
- Forgetting that 40% of the NPS corpus is locked into an annuity at 60.
Go deeper
Related lessons
Concepts to explore
Related guides
Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.