PPF Calculator (India)

What Is PPF?

The Public Provident Fund (PPF) is a government-backed long-term savings scheme in India introduced in 1968. It offers guaranteed, risk-free returns with a 15-year lock-in period, making it one of the safest investment options available to Indian residents.

PPF enjoys EEE (Exempt-Exempt-Exempt) tax status — your investment qualifies for tax deduction under Section 80C, the interest earned is tax-free, and the maturity amount is completely exempt from income tax. This triple exemption makes PPF one of the most tax-efficient instruments in India.

Any Indian resident (including minors through a guardian) can open a PPF account at designated banks or post offices. NRIs cannot open new PPF accounts, but existing accounts opened before becoming NRI can continue until maturity.

How PPF Interest Is Calculated

PPF interest is compounded annually, but the rate is set by the Government of India at the beginning of each quarter (April, July, October, January). The rate has historically ranged from 7% to 12%, and currently stands at 7.1% p.a.

Monthly calculation rule:

Interest is calculated on the lowest balance between the 5th and the last day of each month. This means deposits made after the 5th of a month do not earn interest for that month.

Tip: To maximise interest, deposit your annual contribution as a lump sum before the 5th of April each financial year.

For simplicity, most PPF calculators (including this one) use a yearly deposit model with annual compounding, which provides a close approximation of the actual maturity value.

Example Calculation

Yearly Contribution: ₹1,50,000

Interest Rate: 7.1% p.a.

Tenure: 15 years

Total Invested: ₹1,50,000 x 15 = ₹22,50,000

Total Interest Earned: ₹18,18,209

Maturity Value: ₹40,68,209

You invested ₹22.5 lakh over 15 years and earned ₹18.18 lakh in tax-free interest — your money grew by over 80% with zero risk, thanks to the power of annual compounding.

Key PPF Rules

Minimum deposit: ₹500 per financial year. Failure to deposit the minimum leads to a ₹50 penalty per year to reactivate the account.
Maximum deposit: ₹1,50,000 per financial year. Deposits can be made in a lump sum or up to 12 instalments.
Lock-in period: 15 years from the date of opening. The account cannot be closed prematurely (except in special cases like serious illness or higher education, after 5 years).
Partial withdrawal: Allowed from the 7th financial year onwards. You can withdraw up to 50% of the balance at the end of the 4th year or the preceding year, whichever is lower.
Loan facility: Available from the 3rd to the 6th financial year. Loan amount can be up to 25% of the balance at the end of the 2nd preceding year.
Extension: After the 15-year maturity, the account can be extended in blocks of 5 years — with or without further contributions.
Nomination: One or more nominees can be registered at the time of opening or later.

Tax Benefits of PPF

PPF is one of the few instruments in India that enjoys EEE (Exempt-Exempt-Exempt) tax status across all three stages:

At investment (Exempt): Annual contributions up to ₹1,50,000 qualify for tax deduction under Section 80C of the Income Tax Act. If you are in the 30% tax bracket, this saves you up to ₹46,800 in tax every year (including cess).
On interest (Exempt): The interest earned every year is completely tax-free. Unlike FD interest, PPF interest is not added to your taxable income.
At maturity (Exempt): The entire maturity amount — principal plus accumulated interest — is 100% exempt from income tax. No TDS, no capital gains tax, no wealth tax.

This triple exemption makes PPF especially attractive for conservative investors in higher tax brackets who want guaranteed, tax-free returns.

PPF vs FD vs SIP

How does PPF compare to other popular investment options? Here is a quick comparison:

Feature	PPF	Fixed Deposit (FD)	SIP (Equity MF)
Safety	Government guaranteed	Bank guaranteed (up to ₹5L DICGC)	Market-linked, not guaranteed
Returns	7.1% (fixed by govt)	6-7.5% (varies by bank)	12-15% historical average (equity)
Lock-in	15 years	Flexible (7 days to 10 years)	None (ELSS: 3 years)
Tax on Returns	Fully exempt (EEE)	Taxable as per slab	LTCG >₹1.25L taxed at 12.5%
80C Benefit	Yes (up to ₹1.5L)	Only 5-year tax-saver FD	Only ELSS funds
Liquidity	Low (partial after 7 years)	High (premature withdrawal)	High (redeem anytime)
Best For	Risk-averse, long-term, tax saving	Short-term, guaranteed returns	Wealth creation, higher risk tolerance

How to Use This Calculator

Enter your yearly contribution — the amount you plan to deposit into your PPF account each year. The maximum allowed is ₹1,50,000 per financial year.
Set the interest rate — the current PPF rate is 7.1% p.a. You can adjust this to see how different rates affect your maturity value. The government revises this rate quarterly.
Enter the tenure — minimum 15 years. If you plan to extend your PPF beyond maturity, enter 20, 25, or any multiple of 5 beyond 15.
Click Calculate — see your total investment, interest earned, and maturity value with a year-by-year breakdown chart and table.

PPF is a cornerstone of conservative financial planning in India. It offers guaranteed returns, unmatched tax benefits (EEE status), and the safety of a sovereign guarantee. While the 15-year lock-in requires patience, the combination of compounding and tax savings makes PPF an excellent choice for building a risk-free retirement corpus alongside market-linked investments like SIPs. Start early, invest the maximum ₹1.5 lakh every year before April 5th, and let time and compounding work in your favour.

Enter Your PPF Details

Year-by-Year Growth

Detailed Year-by-Year Breakdown