NPS vs mutual funds calculator
Enter a monthly amount and the years to retirement. See what NPS and a mutual fund give you, including tax.
- Tax on both sides
- Both regimes
- Free, no sign-up
Use both, the tax-smart way
Many salaried people get the best of both: employer NPS for the tax break, mutual funds for flexibility. Our experts set it up.
Questions people often ask
Does my own NPS contribution save tax in the new regime?
No. Only your employer's contribution (80CCD(2)), up to 14% of basic, does.
How much can I save with 80CCD(1B)?
Up to ₹50,000 a year of your own NPS contributions, in the old regime, on top of 80C.
Same money, two routes
Tax, flexibility and pension.
- NPS: tax saved on the way in (old regime), 60% tax-free out, 40% as a pension.
- Mutual fund: no tax break in, 12.5% on long-term gains out.
- Flexibility: fund money is yours any time.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- National Pension System Pension Fund Regulatory and Development Authority
- Investor education Securities and Exchange Board of India
Common questions
Is NPS better than mutual funds?
NPS has low costs and tax benefits, but locks your money until 60 and makes you buy an annuity with part of it. Mutual funds are flexible but have no special tax break.
How much tax does NPS save?
In the old regime, up to ₹50,000 a year of your own contributions under 80CCD(1B), plus your employer's contribution under 80CCD(2). In the new regime, only the employer's.
How is NPS taxed at retirement?
60% of the corpus can be taken tax-free; the annuity you buy pays a pension that's taxed as income.
How are mutual funds taxed at retirement?
Long-term gains above ₹1.25 lakh a year are taxed at 12.5%. Spreading withdrawals over years keeps the tax lower.
Can I use both?
Yes, and many people do: NPS for the tax benefit and a guaranteed pension, mutual funds for flexibility.
