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PPF Calculator

Calculate PPF maturity amount and interest earned over 15 years.

₹
%
years

Results

Maturity Amount₹40.68 L
Total Invested₹22.50 L
Total Interest Earned₹18.18 L
Breakdown
Invested
₹22,50,000
Returns
₹18,18,209
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What is PPF?

PPF (Public Provident Fund) is a government-backed, long-term savings scheme that has been one of India's most trusted investment instruments since 1968. It offers guaranteed returns at an interest rate set quarterly by the government (currently 7.1% p.a.) with zero risk since it is backed by the sovereign guarantee of the Indian government.

The biggest advantage of PPF is its EEE (Exempt-Exempt-Exempt) tax status — the investment qualifies for Section 80C deduction (up to ₹1.5 Lakh), the interest earned is completely tax-free, and the maturity amount is also tax-free. No other investment in India offers this triple tax benefit at this level of safety.

PPF has a minimum lock-in of 15 years, which can be extended in blocks of 5 years indefinitely. The minimum annual deposit is ₹500 and the maximum is ₹1,50,000. Interest is compounded annually and calculated on the lowest balance between the 5th and last day of each month — this is why experts recommend investing before April 5th each year to maximize returns.

With ₹1,50,000 invested annually at 7.1% for 15 years, your total investment of ₹22.5 Lakhs grows to approximately ₹40.7 Lakhs — nearly doubling your money with zero tax and zero risk. If you extend for another 5 years (20 years total), the corpus grows to ₹66.6 Lakhs.

PPF accounts can be opened at any post office, SBI, or authorized banks (ICICI, HDFC, Axis, Bank of Baroda, etc.). You can also open a PPF account online through SBI YONO, ICICI iMobile, or other net banking platforms.

Comparing PPF with other safe investments: PPF (7.1% tax-free) beats FD after tax (effective 4.9% for 30% tax bracket), beats savings account (3-4%), and is comparable to SSY (8.2% but only for girl child). For higher returns with some risk, check our SIP Calculator.

Formula

PPF uses annual compounding with yearly deposits:

For each year: Balance = (Previous Balance + Annual Deposit) × (1 + r)

Where r = Annual interest rate (currently 0.071)

Detailed worked example — ₹1,50,000/year at 7.1% for 15 years:

Year 1: (0 + 1,50,000) × 1.071 = ₹1,60,650 Year 2: (1,60,650 + 1,50,000) × 1.071 = ₹3,32,786 Year 3: (3,32,786 + 1,50,000) × 1.071 = ₹5,17,452 ... Year 15: Maturity ≈ ₹40,68,209

Total Invested = ₹22,50,000 Interest Earned = ₹18,18,209 Effective return = Nearly 1.81x your investment

PPF growth at different annual investments (7.1%, 15 years): - ₹500/year → ₹13,561 - ₹50,000/year → ₹13,56,070 - ₹1,00,000/year → ₹27,12,139 - ₹1,50,000/year → ₹40,68,209

Note: Monthly interest is calculated on the lowest balance between the 5th and last day of each month. Investing a lump sum before April 5th each year maximizes your annual interest.

How to use this PPF Calculator?

1. Enter Annual Investment: Type the amount you will invest each year. Maximum allowed is ₹1,50,000. You can invest in lump sum or in up to 12 monthly installments.

2. Interest Rate: Pre-filled with the current PPF rate (7.1%). This changes quarterly — check the latest rate on the RBI or finance ministry website.

3. Choose Tenure: Minimum is 15 years. You can extend in 5-year blocks (20, 25, 30 years etc.) with or without fresh contributions.

4. Read Results: See your projected maturity amount, total invested, and total tax-free interest earned.

Pro tip: Invest the full ₹1,50,000 as a lump sum before April 5th to earn interest for all 12 months. If you invest monthly, do it before the 5th of each month. This timing trick can earn you ₹50,000-80,000 more over 15 years compared to investing at the end of each month.

Frequently asked questions

What is the PPF interest rate for 2025-26?
The PPF interest rate for FY 2025-26 is 7.1% per annum, compounded annually. The government revises this rate quarterly, but it has remained at 7.1% since April 2020. The rate is linked to the 10-year government bond yield with a 0.25% spread.
Can I withdraw from PPF before 15 years?
Partial withdrawals are allowed from the 7th financial year onwards. You can withdraw up to 50% of the balance at the end of the 4th preceding year or the immediately preceding year, whichever is lower. Full premature closure is allowed after 5 years only for specific reasons: serious medical emergency, higher education, or change of residency status (NRI).
Is PPF better than FD for tax saving?
Absolutely yes. PPF interest is 100% tax-free (EEE status), while FD interest is fully taxable at your slab rate. For someone in the 30% tax bracket: PPF effective return = 7.1%, FD effective return = 7% × 0.70 = 4.9%. PPF wins by a significant margin. However, FDs offer more liquidity (break anytime) while PPF has a 15-year lock-in.
Can NRIs invest in PPF?
NRIs cannot open new PPF accounts. However, if you had an existing PPF account before becoming an NRI, you can continue it until the original 15-year maturity. After maturity, it cannot be extended. The account will earn interest at the PPF rate until maturity.
What happens if I don't deposit the minimum ₹500 in a year?
If you fail to deposit the minimum ₹500 in any year, your PPF account becomes 'discontinued' or 'inactive'. To revive it, you need to pay ₹500 for each year of default plus a penalty of ₹50 per year. The account still earns interest even when inactive.
Can I take a loan against PPF?
Yes, you can take a loan against your PPF balance from the 3rd to the 6th financial year. The loan amount is limited to 25% of the balance at the end of the 2nd preceding year. The interest rate on the loan is 1% above the PPF interest rate (currently 8.1%). From the 7th year, withdrawals replace loans.
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