Which is Better: Difference between PPF & NPS Calculator

Save & Invest

People use PPFs and NPSs to invest in the long term. PPF is only a way to borrow money. On the other hand, NPS is a way to invest linked to the market.

The centre tells you the PPF rate of interest every three months. But when a person has an NPS portfolio, their money is exposed to stocks and bonds. The interest rate on the PPF is 7.1% right now. Let’s say a person chooses a 60:40 risk split between debt and equity in an NPS account. On their investment, they should expect a 10% NPS interest rate.

What is A PPF Calculator?

The PPF calculator is a website-based application. It lets you figure out how much your PPF contribution will be worth as an investment over time. PPF is an investment plan backed by the government that has many benefits. It is a way to put money away for a long time. It has been locked in for 15 years. Because of this, higher returns are given. PPF also lowers the taxes you have to pay while you work.

You can use a PPF calculator online. The calculator will use the PPF method to figure out what to do. The method will figure out how much your whole investment is worth. This is done when a certain amount of time and the rate of interest on the PPF account are given. You could also make plans for your retirement with the help of a PPF portfolio calculator. With the PPF’s features, you can save for retirement in a structured way. Let’s say you already have a retirement fund. You can figure out how much you need to spend over a certain amount of time to reach your retirement goal. But you can only put Rs. 1.5 lakh into a PPF portfolio every year.

What is the National Pension System (NPS) Calculator?

The National Pension System is a retirement plan set up by the government. It’s a system based on contributions. This system’s number of pensions is based on the corpus size.

The NPS calculator can tell you how much money you will have saved when the plan ends. And the amount you expect to get each month from your pension.

The amount invested and the profits made will determine how much money is in the corpus by the time the person retires. The NPS calculator can be used by people who can join the plan.

According to the rules of the NPS, any Indian citizen between 18 and 60 can join. You must follow KYC rules before you can start investing in the plan.

Difference Between PPF and NPS Calculator

  • The PPF rate calculator lets you figure out how the interest rate changes every month. The NPS calculator makes the tricky task of figuring out the retirement corpus easier. It also makes other facts about NPS retirement funds easier to understand.
  • The PPF calculator lets users figure out how much interest they will earn. They might get back a certain amount of the money they put in. The NPS calculator is a tool that is run by a computer. It helps investors figure out what their NPS returns will be. Depending on different scenarios and estimates of how much the NPS contributions will add to the fund,
  • The tax savings are shown on the NPS Calculator. NPS participants would get under Section 80C. The PPF calculator will save money on your taxes.
  • The PPF calculator determines how much will be invested over a fiscal year. The NPS calculator helps with overall financial management by estimating your retirement income. After that, investors can focus on their other financial goals.

Is NPS A Better Investment Than PPF?

From what’s been said, it’s clear that both of these ways to invest have their pros and cons. PPF gives a fixed income a fixed return. But equity pension plans under NPS might give better long-term returns. So, investments in the PPF are less risky than investments in the NPS, which depend on the market.

Also, if you have a high tax rate, joining NPS will help you build a retirement fund that will save you money on taxes. Let’s say you have less than fifteen years until you can retire. You might not want to use your PPF. But NPS could help you set up a retirement fund that keeps your money safe. Because of this, there is no clear answer to the first question. You can choose any of the above products, depending on the type of investment and what you want to do with it.

Rate Of Interest & Returns on NPS & PPF

Here is a table that summarizes what was said about NPS vs. PPF. The table below shows many other factors affecting the NPS and PPF interest rates.

Rates of interest7.1% in Q2 Financial years 2020-2112% to 14%
ReturnsDecided by the governmentMarket-linked interest rates
Withdrawal in partFrom the seventh year forward, it is permitted. After creating an account, you can also obtain a loan during the third and sixth fiscal yearsAfter 10 years, people can choose to get all or part of their money early. If a member wants to quit before they retire. He must use 80% of his money to buy insurances
Investment strategyFixed under government requirementsWhen engaging in NPS, one can pick between equities funds or govt. securities funds, & fixed-income instruments
AnnuityThere is no compulsion to purchase annuitiesIf the NPS balance exceeds 2 lakhs, an annuity must be purchased with a 40% of the NPS amount after retirement.


If you want to put more money into your retirement fund, you can do so through PPF and NPS. Contributions to the PPF can be used as a portfolio’s fixed income source. NPS investments, on the other hand, can lead to market-linked profits. Anyone with a smartphone or desktop computer that can connect to the internet can use the online NPS calculator. Suppose you put in the right amount for the deposit and the type of investment. The PPF calculator returns accurate results.

So, now that you know everything there is to know about NPS and PPF calculators, you can start using them. You can now apply for either or both of these financial tools. In that case, check out the services and products on the website of a financial expert like Piramal Finance. Learn about easy business and personal loan solutions with them.