ELSS vs PPF vs NPS Comparator
Compare three tax-saving investments side by side. See projected corpus, tax savings, and effective returns for ELSS mutual funds, PPF, and NPS over your chosen period.
Investment Parameters
Section 123 (old 80C) limit: ₹1,50,000
Sections 123 and 124(3) deductions exist only in the old regime. 4% cess is added.
Current govt rate: 7.1%
Min 20% (non-govt NPS, since Dec 2025; govt: 40%). Up to 80% lump sum, of which 60% of corpus is tax-free
ELSS (Equity Linked Savings)
PPF (Public Provident Fund)
NPS (National Pension System)
Corpus Growth Comparison
Side-by-Side Comparison
| Feature | ELSS | PPF | NPS |
|---|
Calculations are indicative. Returns are treated as annual rates (compounded monthly at the equivalent rate). ELSS gains are assumed to be redeemed in one year, with 12.5% LTCG plus cess above ₹1.25 lakh. NPS: the annuity purchase itself is not taxed, but the pension it pays is taxable; any lump sum above 60% of the corpus is taxed at your slab (if you choose the new regime, the calculator taxes that part at 30%). ELSS returns are market-linked and not guaranteed. PPF rate is revised quarterly by the government. NPS returns depend on asset allocation and fund manager performance.
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ELSS vs PPF vs NPS: Which Is Best for Tax Saving?
There's no single winner. ELSS has the shortest lock-in (3 years) and market-linked returns, PPF pays a government-set rate (currently 7.1%) that's fully tax-free over 15 years, and NPS adds an extra ₹50,000 deduction. All three qualify under section 123 (old Section 80C) of the Income-tax Act, 2025, and the deductions work only in the old regime.
ELSS suits investors who can sit through equity market swings and want the shortest lock-in (3 years). Returns are potentially the highest of the three, but market-linked and not guaranteed, so it works best with a long time horizon.
PPF is the safest option with government-set returns (revised quarterly) and complete tax exemption (EEE status: exempt at investment, on interest and at withdrawal). It suits conservative investors who want a risk-free, long-term option and can accept a 15-year lock-in.
NPS is designed specifically for retirement planning. Under the All Citizen model, normal exit is after 15 years or at age 60, whichever is earlier. It offers an additional ₹50,000 deduction under section 124(3) (old 80CCD(1B)), making the total tax benefit up to ₹2 lakh in the old regime. At exit, non-government subscribers must use at least 20% of the corpus to buy an annuity (40% for government subscribers) and can take up to 80% as a lump sum, of which 60% of the corpus is tax-free. These rules are for the Tier 1 account; the optional NPS Tier 2 account has no lock-in, but for most people it gives no extra deduction.
Worked example: ₹1.5 lakh a year for 15 years
Illustrative, using the comparator's defaults: ₹1.5 lakh a year (invested monthly in ELSS and NPS, once a year in PPF) for 15 years, the 30% old-regime slab, 12% for ELSS, 7.1% for PPF, 10% for NPS and a 40% NPS annuity share. You put ₹22.5 lakh into each.
| Option | Gross corpus | Net corpus |
|---|---|---|
| ELSS | ₹59.49 L | ₹54.85 L (after ₹4.65 L LTCG tax) |
| PPF | ₹40.68 L | ₹40.68 L |
| NPS | ₹50.20 L | ₹50.20 L (₹20.08 L goes into the annuity) |
All three save the same ₹7.02 lakh in tax over 15 years, because they share one ₹1.5 lakh limit under section 123 (old 80C). So the choice rests on everything else. ELSS ends highest but carries equity risk, PPF is guaranteed and fully tax-free, and ₹20.08 lakh of the NPS figure must buy a pension that is taxed as income. The ₹14 lakh gap between ELSS and PPF only appears if markets deliver the 12% you assumed.
How to Use This Comparator
- 1
Set your annual investment amount
Enter how much you plan to invest per year (max ₹1,50,000 under section 123, old 80C). The calculator assumes the same amount goes into each of the three options for a fair comparison.
- 2
Choose your investment period
Select 3-30 years. Note that PPF matures after 15 years and NPS normal exit is after 15 years or at 60, whichever is earlier, but this calculator projects corpus for any chosen period to help you compare growth trajectories.
- 3
Select your tax slab
Your old-regime marginal rate (5%, 20% or 30%) determines the annual tax saving from the section 123 deduction. In the new regime these deductions are not available, so the tax saving is zero.
- 4
Adjust return rates and compare
Fine-tune expected returns for each option. The results update in real time, showing net corpus after taxes, the post-tax annual return on your contributions, and total tax savings for each instrument.
Key Differences at a Glance
ELSS: Equity Exposure
Shortest lock-in at just 3 years. Invested in equity mutual funds, giving the highest potential returns but with market risk. LTCG above ₹1.25 lakh taxed at 12.5% plus cess.
PPF: Guaranteed Returns
Government-backed; rate reset every quarter. 15-year lock-in with partial withdrawal after year 7. EEE tax status means no tax on maturity. Rate currently 7.1% p.a.
NPS: Retirement Focus
Normal exit after 15 years or at 60, whichever is earlier (All Citizen). Flexible allocation between equity, corporate bonds, and government securities. Extra ₹50K deduction under section 124(3) (old regime). Minimum 20% annuity for non-government subscribers.
Tax Rules for Each Investment
- Section 123 Deduction (old 80C): all three (ELSS, PPF, NPS) qualify for deduction up to ₹1.5 lakh under section 123 read with Schedule XV of the Income-tax Act, 2025. This applies under the old tax regime only.
- Section 124(3), NPS Extra Deduction (old 80CCD(1B)): NPS subscribers get an additional ₹50,000 deduction over and above the ₹1.5 lakh section 123 limit (old regime only). This makes NPS the only instrument offering up to ₹2 lakh in total deductions.
- ELSS LTCG Tax: long-term capital gains above ₹1.25 lakh in a financial year are taxed at 12.5% (no indexation). Gains up to ₹1.25 lakh are tax-free. Dividends are taxed at your slab rate.
- PPF EEE Status: PPF is Exempt-Exempt-Exempt. The investment is deductible (section 123), interest earned is tax-free, and the maturity amount is completely tax-free.
- NPS Partial EEE: at exit, non-government subscribers can take up to 80% of the corpus as a lump sum; only 60% of the corpus is tax-free, so any lump sum above that is taxed at your slab. At least 20% must buy an annuity (40% for government subscribers). Buying the annuity is not taxed, but the pension it pays is taxable at your slab rate.
