ganak.appPPF Calculator
Calculate PPF (Public Provident Fund) maturity amount, yearly interest, and total returns over 15 years in India. Estimate EEE tax benefits under Section 80C (up to ₹1.5 lakh deduction), plan annual contributions, and compare PPF with other safe investments. PPF interest rate: 7.1% p.a. as of Q4 FY 2025-26, compounded yearly. Government-backed retirement savings.
Yearly PPF Breakdown
Invested vs interest earned
| Year | Invested | Interest | Balance |
|---|---|---|---|
| 1 | ₹10,000 | ₹710 | ₹10,710 |
| 2 | ₹20,000 | ₹2,180 | ₹22,180 |
| 3 | ₹30,000 | ₹4,465 | ₹34,465 |
| 4 | ₹40,000 | ₹7,622 | ₹47,622 |
| 5 | ₹50,000 | ₹11,713 | ₹61,713 |
| 6 | ₹60,000 | ₹16,805 | ₹76,805 |
| 7 | ₹70,000 | ₹22,968 | ₹92,968 |
| 8 | ₹80,000 | ₹30,279 | ₹1,10,279 |
| 9 | ₹90,000 | ₹38,819 | ₹1,28,819 |
| 10 | ₹1,00,000 | ₹48,675 | ₹1,48,675 |
| 11 | ₹1,10,000 | ₹59,941 | ₹1,69,941 |
| 12 | ₹1,20,000 | ₹72,717 | ₹1,92,717 |
| 13 | ₹1,30,000 | ₹87,110 | ₹2,17,110 |
| 14 | ₹1,40,000 | ₹1,03,234 | ₹2,43,234 |
| 15 | ₹1,50,000 | ₹1,21,214 | ₹2,71,214 |
What is PPF?
A government-backed, tax-free 15-year savings scheme
PPF stands for Public Provident Fund — a long-term, government-supported savings scheme designed to facilitate secure wealth accumulation over a period of 15 years. It is widely utilised due to its tax-free returns, tax-deductible contributions, and its status as a fully secure investment. The maximum permissible contribution is ₹1.5 lakh per financial year; only this amount accrues interest, and contributions exceeding this threshold are not eligible for interest accrual.
Contributions made annually to a PPF account accrue interest each year. Over time, the power of compounding significantly enhances the growth of the accumulated balance.
A PPF account can be opened at any authorised bank or post office across India.
PPF Interest Calculation
Annual compounding, contribution timing, and rate updates
PPF earns compound interest credited annually on March 31. Interest is calculated on the lowest balance between the 5th and last day of every month, but for simplicity this calculator models it as annual compounding on yearly deposits — which closely matches common PPF calculators.
The maturity amount depends on:
- Yearly contribution
- Interest rate (set by Government, usually updated quarterly)
- Tenure (15 years, extendable in blocks of 5 years)
- Contribution timing (earlier contributions earn more interest)
This calculator uses annual compounding on yearly deposits. The actual PPF scheme calculates interest monthly on the minimum balance, but the annual model produces results consistent with most standard PPF calculators.
PPF Compound Interest Formula
Step-by-step formula with a 15-year worked example
Balance = (Balance + Contribution) × (1 + r)Contribution = Annual deposit (made at start of each year)
r = Annual interest rate (e.g. 7.1% p.a.)
Each year, the contribution is added at the start and interest is credited at year-end. This calculator models annual compounding on yearly deposits, which closely matches most standard PPF calculators.
Example:
If you deposit ₹1.5 lakh every year at 7.1% for 15 years:
Maturity Amount: ₹40,68,209 (approx)
Total Interest Earned: ₹18,18,209
Total Investment: ₹22,50,000
PPF works beautifully because compounding accelerates growth, especially in the later years.
How to Maximise Your PPF Returns
Deposit timing, limits, and extension strategies
1. Invest Before the 5th of Every Month
Interest is calculated on the lowest balance of the month. If you deposit after the 5th, you lose interest for that month.
2. Deposit Full Amount at the Start of the Year
A lump-sum deposit in April earns the most interest over time.
3. Use the Full ₹1.5 Lakh Limit
To maximize long-term compounding, stay consistent every year.
4. Extend Your Account
After 15 years, you can: Keep it running without adding money, extend in 5-year blocks, or withdraw partially every year.
PPF vs FD vs NPS
Risk, returns, lock-in, and tax treatment compared
| Feature | PPF | FD | NPS |
|---|---|---|---|
| Risk | Very low | Low | Moderate |
| Returns | 7.1% as of Q4 FY 2025-26 (tax-free) | 6–8% | 8–12% |
| Lock-in | 15 years | 7 days – 10 yrs | Till retirement |
| Tax on maturity | Tax-free | Fully taxable | Partially taxable |
PPF is ideal for people who want guaranteed, tax-free long-term growth.
PPF Withdrawal Rules
Partial withdrawal limits from year six onward
Allowed from Year 6 onward
- Maximum withdrawal: up to 50% of previous balance
- One withdrawal per financial year
PPF Premature Closure
Allowed cases, penalties, and interest rate impact
Allowed only in specific cases:
- Serious illness
- Higher education
- Change of residency status
Penalty: 1% lower interest.
Frequently Asked Questions
Common questions about Public Provident Fund, tax benefits, and returns