NPS vs PPF Calculator
Compare the retirement corpus from NPS and PPF for the same monthly saving.
Rate the insurer pays on the 40% of NPS that must buy a pension.
PPF maturity
₹82,46,412
NPS corpus
₹1,33,78,903
- Total you deposit
- ₹30,00,000
- NPS — withdrawn at 60 (60%)
- ₹80,27,342
- NPS — must buy annuity (40%)
- ₹53,51,561
- Estimated monthly pension
- ₹26,758
- PPF — fully withdrawable, tax-free
- ₹82,46,412
PPF pays a fixed rate announced by the government every quarter and the maturity amount is tax-free. NPS is market-linked, so its return is only an assumption — at 60 at least 40% of the corpus has to be used to buy an annuity, and the pension you receive is taxable. Deposit limits (PPF: ₹1.5 lakh a year) are not applied here.
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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.
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Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.