NPS vs PPF vs ELSS Calculator

NPS (National Pension System), PPF (Public Provident Fund), and ELSS (Equity Linked Savings Scheme) are three of the most common Section 80C tax-saving instruments in India, each eligible for a deduction of up to ₹1,50,000 per year — but they differ enormously in expected return, lock-in, and how the final corpus is taxed. PPF is fully tax-free at maturity (EEE status) but offers a modest, government-notified interest rate. ELSS invests in equity markets, offering higher expected long-term returns but subject to equity LTCG tax on gains above the annual exemption, with the shortest lock-in (3 years) of the three. NPS is a retirement-focused hybrid instrument where only 60% of the maturity corpus is available as a tax-free lump sum — the remaining 40% must buy an annuity, which itself becomes a source of taxable income later. This calculator projects the maturity corpus for all three side by side for the same annual investment amount and tenure.

Annual Annuity FV: Σ (i=1 to tenure) [ amount × (1+r)^(tenure−i+1) ]

PPF: finalValue = maturityCorpus (fully tax-free)

ELSS: taxableGain = max(0, totalGain − ₹1,25,000); tax = taxableGain × 12.5%; finalValue = maturityCorpus − tax

NPS: lumpSum = maturityCorpus × 60% (tax-free); annuityCorpus = maturityCorpus × 40% (taxed later as annuity income)

EEE (Exempt-Exempt-Exempt)

A tax status where the investment, its returns, and its maturity proceeds are all exempt from tax — PPF is the classic EEE instrument in India.

Equity LTCG Exemption

The first ₹1,25,000 of long-term capital gains from equity investments (including ELSS) in a financial year is exempt from tax; only the excess is taxed, currently at 12.5%.

NPS Annuity Corpus

The mandatory 40% portion of NPS maturity proceeds that must be used to purchase an annuity plan — it is not paid out as a lump sum, and the periodic annuity income it generates is taxed as regular income when received.

Section 80C

A provision of the Income Tax Act allowing a deduction of up to ₹1,50,000 per year from taxable income for investments in specified instruments, including PPF, ELSS, and NPS (NPS also has an additional ₹50,000 deduction under Section 80CCD(1B), not modeled in this calculator).