NPS vs EPF Calculator
Compare National Pension System (NPS) vs Employees' Provident Fund (EPF): retirement corpus, lump-sum tax rules, monthly pension, and Section 80CCD tax savings.
Adjust Parameters
Retirement Contribution Parameters
Equal monthly investment applied to both EPF and NPS for a fair comparison.
Investment horizon: 30 years
Current EPFO statutory rate for FY 23-24 & 24-25 is 8.25%.
Historical multi-asset CAGR with equity allocation averages 10%–12%.
PFRDA mandates min 40% annuity. Remaining (60%) is tax-free lump sum.
Annual rate paid out by annuity provider as monthly pension.
Used to calculate additional career tax savings from Section 80CCD(1B) (₹50,000/yr).
NPS yields +70.7% more than EPF (₹1,48,69,394)
Retirement Wealth Accumulation Trajectory
Compare year-by-year compounding balance between EPF and NPS.
| Year | Age | Total Invested | EPF Balance (8.25%) | NPS Balance (10.5%) | Wealth Gap (NPS - EPF) |
|---|---|---|---|---|---|
| Yr 1 | 31 yrs | ₹1,20,000 | ₹1,25,363 | ₹1,27,049 | +₹1,686 |
| Yr 5 | 35 yrs | ₹6,00,000 | ₹7,39,127 | ₹7,91,555 | +₹52,428 |
| Yr 10 | 40 yrs | ₹12,00,000 | ₹18,37,775 | ₹21,26,594 | +₹2,88,820 |
| Yr 15 | 45 yrs | ₹18,00,000 | ₹34,70,819 | ₹43,78,276 | +₹9,07,457 |
| Yr 20 | 50 yrs | ₹24,00,000 | ₹58,98,198 | ₹81,75,968 | +₹22,77,770 |
| Yr 25 | 55 yrs | ₹30,00,000 | ₹95,06,285 | ₹1,45,81,167 | +₹50,74,882 |
| Yr 30 | 60 yrs | ₹36,00,000 | ₹1,48,69,394 | ₹2,53,84,195 | +₹1,05,14,801 |
Feature & Regulatory Comparison Matrix
| Dimension | EPF (Employees' Provident Fund) | NPS (National Pension System) |
|---|---|---|
| Regulator & Scheme Nature | EPFO (Statutory, sovereign guaranteed) | PFRDA (Market-linked defined contribution) |
| Asset Class Exposure | Predominantly Government debt, limited ETF equity | Active choice: Equity ('E' up to 75%), Corp Debt ('C'), Govt Bonds ('G') |
| Tax Deduction at Entry | Section 80C (shared within ₹1.5 Lakh limit) | Section 80CCD(1) + Exclusive Section 80CCD(1B) up to ₹50,000 |
| Maturity Withdrawal Liquidity | 100% Lump sum withdrawal permitted | Max 60% lump sum; Min 40% mandatory annuity |
| Tax on Maturity Lump Sum | 100% Tax-Free (EEE) | 60% Lump Sum is 100% Tax-Free under Sec 10(12A) |
| Monthly Pension Payout | None from EPF corpus (separate EPS formula) | Lifelong monthly annuity pension (taxable as slab income) |
How This Is Calculated
Transparent mathematical formulas and assumptions used across our financial engines.
Variables & Legend
Step-by-Step Calculation
- Simulate Compounding:
\text{FV}_{\text{EPF}} \text{ vs } \text{FV}_{\text{NPS}}Simulate 30-year career wealth under EPF statutory crediting and NPS market CAGR.
- Partition Liquidity & Pension:
60\% \text{ Lump Sum} + 40\% \text{ Annuity}Allocate 60% tax-free withdrawal and 40% mandatory monthly pension.
- Calculate Career Tax Alpha:
\text{Tax Saved} = 50000 \times t_{\text{slab}} \times nCompute lifetime tax deductions under Section 80CCD(1B).
Conventions & Assumptions
- EPF enjoys EEE tax status: 100% tax exemption on contributions (up to ₹2.5L/yr), interest accrued, and maturity lump sum.
- NPS lump-sum withdrawal (up to 60%) is 100% tax-free under Section 10(12A). Annuity income received monthly is taxable as pension under your income tax slab.
- NPS provides an additional ₹50,000 tax deduction under Section 80CCD(1B), beyond the ₹1.5 lakh Section 80C limit.
Frequently Asked Questions
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