PPF Calculator

Calculate PPF maturity amount, yearly interest, and total returns over 15 years. Plan contributions up to ₹1.5 lakh under 80C at 7.1% p.a.

10K
₹
years
%

Maturity Amount
₹2,71,214
2.71 Lakhs
Matures in 2042·15 years from now
₹1,50,000
1.50 Lakh • Invested
₹1,21,214
1.21 Lakh • Interest
Invested 55%
45% Interest
Total Return
80.8%
on invested amount
You Get
₹1.81
for every ₹1 invested
Yearly Investment
₹10,000
10K

Yearly PPF Breakdown

Invested vs interest earned

YearInvestedInterestBalance
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 for secure wealth accumulation over 15 years. It offers tax-free returns, tax-deductible contributions under Section 80C, and sovereign guarantee.

₹500 – ₹1.5L per year
15-year lock-in (extendable)
7.1% p.a. (Q4 FY 2025-26)
EEE — completely tax-free
SBI, HDFC, ICICI, Post Office
Compound interest, credited yearly

Same everywhere

PPF interest rate, rules, and limits are set by the Government of India. Whether you open at SBI, HDFC Bank, ICICI Bank, PNB, Bank of Baroda, Axis Bank, Canara Bank, or any Post Office — the scheme is identical.

Tax Benefits of PPF (EEE Status)

Triple tax exemption under Section 80C and beyond

PPF enjoys the coveted EEE (Exempt-Exempt-Exempt) tax status — one of the most tax-efficient investment options in India.

E
Exempt on Investment
Deposits up to ₹1.5L qualify for Section 80C deduction
E
Exempt on Interest
Entire interest earned is completely tax-free
E
Exempt on Maturity
No tax on the maturity amount received
Why this matters: A 7% FD for someone in the 30% tax bracket effectively yields only ~4.9% after tax. PPF's 7.1% is the actual return you receive — making it significantly better for long-term savings.

PPF Interest Calculation & Formula

Annual compounding, contribution timing, and a worked example

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. This calculator models annual compounding on yearly deposits — consistent with standard PPF calculators.

Yearly Contribution

₹500 to ₹1,50,000 per financial year

Input

Interest Rate

Set by Government, revised quarterly (currently 7.1%)

Variable

Tenure

15 years minimum, extendable in blocks of 5 years

Lock-in

Contribution Timing

Deposit before 5th of month for maximum interest

Strategy

Each year

Balance = (Balance + Contribution) × (1 + r)

Total interest

Maturity Amount − Total Invested
Contribution — Annual deposit (start of year)
₹500 – ₹1.5L
r — Annual interest rate
7.1% (0.071)
Tenure — Total investment period
15–50 years
Compounding — Interest credited
Annually (Mar 31)

Input

Yearly deposit
₹1,50,000
Interest rate
7.1% p.a.
Tenure
15 years

Result

Total investment
₹22,50,000
Interest earned
₹18,18,209
Total maturity
₹40,68,209
Return per ₹1
₹1.81

Maturity Amount: ₹40,68,209 | Total Interest Earned: ₹18,18,209 | Total Investment: ₹22,50,000

Power of compounding

In the first 5 years you earn ~₹2.7L interest. In the last 5 years you earn ~₹9.4L — more than 3× as much. PPF rewards patience.

How to Maximise Your PPF Returns

Deposit timing, limits, and extension strategies

Invest before the 5th of every month

Interest is calculated on the lowest balance between the 5th and last day of each month. Depositing after the 5th means zero interest for that month.

Deposit full amount in April

A lump-sum in April (start of FY) earns interest for the entire year. This can generate ₹10,000–₹15,000 more interest over 15 years vs depositing in March.

Use the full ₹1.5 lakh limit

The difference between investing ₹50,000/year and ₹1,50,000/year is ₹27 lakh over 15 years. Maximise consistently for the best compound growth.

Extend after 15 years

After maturity, extend in 5-year blocks. Your entire corpus continues earning 7.1% tax-free — no other instrument offers this combination of safety + tax efficiency at this scale.

Who Should Invest in PPF?

Ideal candidates and who should consider alternatives

Ideal for

  • Salaried individuals looking for Section 80C tax savings
  • Conservative investors wanting guaranteed, risk-free returns
  • Long-term retirement planners (15–25 year horizon)
  • Parents building a child's education or marriage fund
  • Those who prefer government-backed safety over market volatility

Not suitable for

  • Those needing money within 5–7 years (15-year lock-in)
  • NRIs (cannot open new PPF accounts)
  • Investors seeking market-linked returns (10%+ CAGR)
  • Those wanting to invest more than ₹1.5 lakh/year

Common Mistakes to Avoid in PPF

Deposit timing, missed payments, and contribution limits

Depositing after the 5th

Interest is calculated on monthly minimum balance between 5th and last day. Deposit before the 5th to earn interest for that month.

Timing

Depositing in March instead of April

A lump-sum in April earns 12 months of interest. Depositing in March earns zero additional interest that year.

Strategy

Missing the ₹500 minimum

If you miss the minimum yearly deposit, the account becomes inactive. Reactivation requires ₹50 penalty per defaulted year plus the minimum deposit.

Penalty

Not using the full ₹1.5L limit

Investing ₹50K/year vs ₹1.5L/year means ₹27L less over 15 years at 7.1%. Maximise early for best compounding.

Growth

Opening multiple PPF accounts

Only one PPF account is allowed per person. A second account is irregular and may not earn interest.

Rule

Withdrawing at maturity instead of extending

If you don't need the money, extend in 5-year blocks. Your corpus keeps earning 7.1% tax-free — unmatched by any other instrument.

Compounding

PPF vs FD vs NPS

Risk, returns, lock-in, and tax treatment compared

PPF

Returns
7.1% (tax-free)
Effective (30% bracket)
7.1%
Risk
Zero (Govt)
Lock-in
15 years
Tax on maturity
Tax-free

FD

Returns
6–8% (taxable)
Effective (30% bracket)
~4.9%
Risk
Low
Lock-in
Flexible
Tax on maturity
Fully taxable

NPS

Returns
8–12% (partial tax)
Effective (30% bracket)
~7–9%
Risk
Moderate
Lock-in
Till retirement
Tax on maturity
Partially taxable

Bottom line

PPF is the best choice for risk-averse investors wanting guaranteed, tax-free returns. NPS is better if you can tolerate market risk for higher growth. FD is only suitable for short-term parking — its post-tax return is significantly lower.

PPF vs SSY — Which Should You Choose?

Eligibility, interest rates, and lock-in compared

PPF

Interest Rate
7.1% p.a.
Tax Status
EEE (Tax-free)
Lock-in
15 years
Eligibility
Any Indian resident
Withdrawal
From year 7 (50%)
Best For
Long-term savings

SSY

Interest Rate
8.2% p.a.
Tax Status
EEE (Tax-free)
Lock-in
21 years
Eligibility
Girl child (0–10)
Withdrawal
At age 18 (50%)
Best For
Girl child future

Which one?

PPF is better for general long-term savings. If you have a daughter under 10, SSY offers a higher rate (8.2% vs 7.1%) but funds are locked until she turns 21. Compare with our SSY Calculator.

PPF Withdrawal & Loan Rules

Partial withdrawal, loan facility, and maturity options

Partial Withdrawal (From Year 7)

Allowed from the 7th financial year onward. Maximum is 50% of balance at end of 4th preceding year or previous year — whichever is lower. One withdrawal per financial year.

Loan Against PPF (Years 3–6)

Borrow up to 25% of the balance at end of the 2nd preceding year. Interest rate: PPF rate + 1% (currently 8.1%). Must repay within 36 months. Only available from 3rd to 6th financial year.

Full Maturity (After 15 Years)

The entire balance (principal + interest) can be withdrawn tax-free. You can also extend in 5-year blocks — with or without further contributions — and your balance keeps earning interest.

PPF Premature Closure

Allowed cases, penalties, and interest rate impact

Premature closure is allowed only after completing 5 financial years and only under these circumstances:

Serious illness

Life-threatening medical treatment of account holder, spouse, parents, or children. Medical documentation required.

Higher education

Admission fee and expenses for higher education in India or abroad. Confirmed admission letter required from a recognised institution.

Change of residency

If the account holder becomes a Non-Resident Indian (NRI), the account can be closed. Passport and visa documentation required.

Penalty: Interest is paid at 1% lower than the applicable PPF rate from the date of opening. This can result in a significant reduction in the final payout — premature closure should be a last resort.

Frequently Asked Questions

Common questions about Public Provident Fund, tax benefits, and returns

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Last updated Feb 16, 2026