Every year Indian taxpayers lock roughly 1.5 lakh into Section 80C instruments, and nine times out of ten the choice is made on instinct rather than math.
About this calculator
Every year Indian taxpayers lock roughly 1.5 lakh into Section 80C instruments, and nine times out of ten the choice is made on instinct rather than math. PPF feels safe, ELSS feels modern, NPS feels complicated, and EPF just happens to you through payroll. This calculator stops the guesswork by running the same monthly contribution through all four across your chosen horizon, factoring in the lockin period, expected return, tax treatment at exit, and the approximate tax saved upfront at your slab rate.
The calculator uses realistic long-run returns: PPF at 7.1% (compounded annually, tax-free), ELSS at 12% (LTCG at 12.5% with a 1.25 lakh annual exemption), NPS at 10% blended across equity and debt (60% tax-free corpus, 40% mandatory annuity taxed at slab), and EPF at 8.25% (tax-free if withdrawn after five years). It then subtracts the exit tax from the gross corpus and adds the approximate tax saved on the contribution.
What usually surprises people: over 15 years ELSS wins the gross corpus race by a wide margin because of the equity return, but PPF's tax-free exit closes the gap. NPS looks attractive only when you value the extra 50k 80CCD(1B) deduction and accept the forced annuitisation at 60. EPF is effectively a silent winner for most salaried employees because the employer's 12% match is free money on top of the tax benefit. For a single-product projection see [[ppf]], [[elss]] or [[nps]].
Common uses
- Deciding whether an incremental 10k/month goes into ELSS, PPF, or additional NPS
- Choosing the 1.5 lakh 80C allocation mix for a 30-year-old with 30 years to retirement
- Evaluating NPS Tier-1 for the extra 50k deduction if already maxing out 80C
- Comparing PPF versus ELSS for a conservative investor with a 15-year horizon
- Modeling the difference at a 20% marginal slab versus 30% slab
Frequently asked questions
Which is better: NPS, ELSS or PPF?
Over 15-plus years at a 30% slab, ELSS usually produces the largest net corpus because of equity returns. PPF is the safest tax-free option but capped at 1.5 lakh per year. NPS shines if you need the extra 50k deduction under 80CCD(1B) and can tolerate the 40% mandatory annuity at 60.
What is the lockin period for each product?
ELSS has the shortest lockin at 3 years. PPF is 15 years with partial withdrawals after 7. NPS Tier-1 locks until 60 with limited partial withdrawals for specified purposes. EPF continues until retirement or a two-month job gap.
Do I pay tax when I withdraw from NPS?
At 60, 60% of the NPS Tier-1 corpus is tax-free lump sum and the remaining 40% must be used to buy an annuity, whose monthly payout is taxed at your slab. So effectively 40% of the corpus gets slab-taxed over many years rather than upfront.
Does the new tax regime allow 80C deductions?
No. 80C, 80CCD(1B), 80D, Section 24, HRA and most other deductions are not available under the new regime. If you pick the new regime, tax-saving investments become pure return plays and the comparison shifts towards ELSS purely on equity merit.
How does EPF compare with PPF?
EPF pays slightly more (8.25% vs 7.1%) and gets a 12% employer match that is effectively free return. But EPF is only for salaried employees. PPF is open to everyone and has identical tax-free exit treatment. Most salaried people should max EPF first and top up with PPF only if needed.