PPF vs NPS Calculator India — Best Retirement Option 2026
Public Provident Fund · 7.1% p.a. · EEE Tax-Free · Section 80C · 15-Year Lock-in
PPF and NPS are both popular retirement instruments but serve different investors. PPF: guaranteed 7.1%, EEE tax, complete flexibility, no market risk. NPS: market-linked (10–12% historical), 80CCD extra ₹50K deduction, but 60% must be annuitised (monthly pension), 40% withdrawn tax-free. For aggressive investors under 45, NPS typically creates more corpus. For risk-averse, PPF wins. Compare both for your situation.
Tax-Free
Tax-Free
Tax-Free
💰 PPF vs NPS Calculator India
Govt revises quarterly. Current rate: 7.1% (FY2025-26)
Base 15 yrs. Extendable in 5-yr blocks (20, 25, 30 yrs)
Triple
Tax-Free
📅 Year-by-Year Breakdown
| Year | Opening Balance | Annual Deposit | Interest Earned | Closing Balance | Withdrawal Eligible |
|---|---|---|---|---|---|
| 1 | ₹0 | ₹50,000 | +₹3,550 | ₹53,550 | 🔒 Locked |
| 2 | ₹53,550 | ₹50,000 | +₹7,352 | ₹1,10,902 | 🔒 Locked |
| 3 | ₹1,10,902 | ₹50,000 | +₹11,424 | ₹1,72,326 | 🔒 Locked |
| 4 | ₹1,72,326 | ₹50,000 | +₹15,785 | ₹2,38,111 | 🔒 Locked |
| 5 | ₹2,38,111 | ₹50,000 | +₹20,456 | ₹3,08,567 | 🔒 Locked |
🧾 80C Tax Benefit Breakdown
📐 PPF Interest Calculation Formula
PPF Maturity Formula (Yearly Compounding):
📖 Example Calculation
Deposit: ₹1,00,000/year | Rate: 7.1% p.a. | Tenure: 15 years
💼 Real Life Use Cases
₹1.5L/yr × 30 yrs @ 7.1% → ₹1.54 Cr tax-free retirement corpus
₹50K/yr from child's birth → ₹27L ready when child turns 15
₹1L/yr × 15 yrs → ₹27L for property purchase, zero tax
30% slab: ₹1.5L deposit saves ₹46,800 tax/year + builds corpus
Frequently Asked Questions
What is the extra tax benefit of NPS over PPF?
NPS: Section 80CCD(1B) gives extra ₹50,000 deduction over and above the ₹1.5L Section 80C limit. At 30% tax slab: ₹15,000 extra tax savings annually. Over 25 years: ₹3.75L extra tax saved vs PPF. But NPS interest is NOT EEE — 60% is taxable as income at withdrawal, 40% used for taxable pension annuity.
Can I withdraw NPS corpus before 60 years?
Partial withdrawal after 3 years (25% of own contributions) for specific reasons: children's education/marriage, house purchase, medical emergency. Premature exit before 60: only 20% lump sum (tax-free), 80% must buy annuity (taxable pension). At 60: 60% lump sum (40% tax-free + 20% taxable), 40% annuity.
Which is better — PPF or NPS for government employee?
Government employees covered by NPS (new pension scheme since 2004) contribute 10% salary, get 14% employer contribution — massive advantage. Additional PPF investment still recommended for: guaranteed tax-free base, flexibility, EEE treatment. Combination: employer NPS for retirement + PPF as safe backup = optimal.
At what age should I start PPF vs NPS?
Under 30: NPS recommended (longer equity compounding period, extra 80CCD deduction worth it). 30–45: Both work — split investments. Above 50: PPF safer (no annuity compulsion, full withdrawal at 60 possible if PPF opened at 45+). NPS equity allocation should reduce as retirement approaches (use Lifecycle Fund). PPF any age.
📌 Key Takeaways
- ✅ PPF vs NPS Calculator India helps compute exact maturity with year-wise interest breakup
- ✅ Current PPF interest rate is 7.1% p.a. for FY2025-26, compounded annually
- ✅ PPF has EEE status — investment, interest, and maturity all completely tax-free
- ✅ Max deposit ₹1.5 lakh per year, minimum ₹500. Up to 12 instalments per year
- ✅ Partial withdrawal allowed from Year 6 onwards, once per year (max 50%)
- ✅ PPF account can be extended in 5-year blocks after 15 years
- ✅ Loan against PPF available from Year 3 to 6 at PPF rate + 1%
- ✅ Sovereign guarantee — zero default risk, backed by Government of India