PPF Calculator
Calculate your Public Provident Fund maturity amount, total interest earned, and year-wise growth instantly.
Investment Details
Maturity Summary
Growth Projection
Year-wise Breakup
| Year | Invested | Balance | Interest |
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What Is PPF (Public Provident Fund)?
The Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India. It was introduced in 1968 and remains one of the most popular risk-free investment instruments for salaried and self-employed individuals alike. PPF accounts are available at post offices and all major banks.
The current PPF interest rate is 7.1% per annum (compounded annually), set by the Ministry of Finance and revised quarterly. Interest earned is completely tax-free, making the effective yield significantly higher than comparable fixed deposits when adjusted for tax.
PPF Key Features
- Lock-in Period: 15 years minimum. Can be extended in blocks of 5 years.
- Deposit Limit: Minimum ₹500 and maximum ₹1,50,000 per financial year.
- Tax Benefits: EEE (Exempt-Exempt-Exempt) — deposits qualify for Section 80C deduction (up to ₹1.5L), interest earned is tax-free, and maturity amount is tax-free.
- Loan Facility: You can borrow against your PPF balance from the 3rd year onwards.
- Partial Withdrawal: Allowed from the 7th year for specific needs.
- Guaranteed Returns: Government-backed with no market risk.
How PPF Interest Is Calculated
PPF interest is calculated monthly on the lowest balance between the 5th and last day of each month, but credited to the account at the end of the financial year. To maximise returns, deposit your yearly contribution before the 5th of April so the full amount earns interest for all 12 months of that year.
Formula: Interest = Balance × (Rate / 100) added at end of each year on the compounded balance.
PPF vs Other Instruments
- PPF vs FD: PPF interest is tax-free; FD interest is taxable. PPF effective yield is higher for taxpayers in the 20–30% bracket.
- PPF vs SIP: SIP in equity funds can deliver 12–15% but with market risk. PPF offers ~7.1% with zero risk and full tax exemption.
- PPF vs NPS: NPS has higher potential returns but partial tax on withdrawal. PPF is fully tax-free at maturity.
- PPF vs ELSS: ELSS has a 3-year lock-in vs PPF's 15 years, but ELSS gains above ₹1L/year are taxable at 10%.
Who Should Invest in PPF?
PPF is ideal for risk-averse investors looking for guaranteed, tax-free returns over a long horizon. It is particularly valuable for individuals in the 20–30% tax bracket where the tax-free nature significantly boosts effective yield. It is also a great way to build a retirement corpus alongside equity investments.
Frequently Asked Questions
What is the PPF interest rate in 2025?
The current PPF interest rate is 7.1% per annum, compounded annually. It is reviewed quarterly by the Government of India and has remained at 7.1% since April 2020.
Can I withdraw from PPF before 15 years?
Full withdrawal is only allowed at maturity (15 years). Partial withdrawals are permitted from the 7th financial year for specific purposes. Premature closure is allowed only in exceptional circumstances (serious illness, higher education, account holder's death).
Is PPF interest taxable?
No. PPF follows the EEE (Exempt-Exempt-Exempt) tax model. Deposits qualify for Section 80C deduction, interest earned is tax-free, and the maturity amount is fully exempt from income tax.
Can I have more than one PPF account?
No. A person can hold only one PPF account in their own name. A separate account can be opened for a minor child, but contributions to both accounts combined cannot exceed ₹1,50,000 per year.
What happens after 15 years?
After the initial 15-year period, you can either withdraw the full balance or extend the account in 5-year blocks (with or without further contributions). Extension with contributions allows continued compound growth under the EEE tax benefit.
Is NRI eligible for PPF?
No. NRIs (Non-Resident Indians) are not eligible to open a new PPF account. An existing PPF account opened before becoming an NRI can be maintained until maturity but cannot be extended beyond 15 years.
PPF Investment Strategy — Maximise Returns Over 15 Years
The Public Provident Fund rewards patience and consistency. With a 15-year lock-in and compound interest, the choice of when and how much you deposit each year significantly affects your final maturity amount. Understanding PPF mechanics helps you extract maximum value from this government-backed instrument.
The Critical Rule: Deposit Before 5th of April
PPF interest is calculated on the lowest balance between the 5th and last day of each month. If you deposit ₹1,50,000 on April 5 (before close), the full amount earns interest for all 12 months of that financial year. If you deposit on April 6, you lose one full month's interest on ₹1,50,000 — which at 7.1% is around ₹888 lost. Over 15 years, consistently depositing before April 5 can mean ₹10,000–15,000 more in your maturity corpus.
PPF Corpus Growth: Year-by-Year Impact of ₹1.5L Annual Deposit
| Year | Annual Deposit | Interest Earned | Cumulative Balance |
|---|---|---|---|
| 1 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| 5 | ₹1,50,000 | ₹57,321 | ₹9,37,190 |
| 10 | ₹1,50,000 | ₹1,27,248 | ₹21,07,700 |
| 15 (maturity) | ₹22,50,000 | ₹18,18,209 | ₹40,68,209 |
At 7.1% p.a., ₹22.5L invested over 15 years grows to ~₹40.7L — earning ₹18.2L in completely tax-free interest. The total is entirely exempt under the EEE model.
PPF Extension Strategy (Beyond 15 Years)
After 15 years, extending PPF in 5-year blocks with contributions is one of the most powerful tax-free compounding strategies available in India:
- 20 years (1 extension): ₹1.5L/year → corpus grows to approximately ₹66–67 lakh
- 25 years (2 extensions): Corpus crosses ₹1 crore at ₹1.5L annual deposit
- Extension without contributions: Keep the balance earning 7.1% compounded annually with zero new deposits — the money continues to grow tax-free
Combining PPF with Equity for Optimal Returns
Financial planners often recommend a "barbell" approach for long-term wealth creation: allocate a fixed portion to PPF for guaranteed, tax-free, risk-free returns and the remainder to equity mutual funds (SIP) for higher growth potential. PPF anchors your portfolio against market crashes while equity provides inflation-beating returns over the long run.
A common allocation: invest ₹1.5L/year in PPF (maxing out Section 80C from PPF alone) and invest additional savings via SIP in diversified equity funds. This structure gives you both the safety net of guaranteed government returns and the compounding power of equities.
Frequently Overlooked PPF Benefits
- Loan against PPF (Year 3–6): Borrow up to 25% of the balance at the end of 2 years preceding the loan year. Interest charged is only 1% above PPF rate. Useful for short-term needs without breaking the account.
- Nomination facility: Nominate a family member who can claim the balance without going through legal succession in case of the account holder's death.
- Cannot be attached by courts: PPF balance is protected from court decrees and insolvency proceedings under the PPF Act — making it a creditor-proof asset.
- Minor account strategy: Parents can open a PPF account for a minor child. Both contributions count towards the parent's ₹1.5L limit but the child builds their own corpus that matures when they reach adulthood.
Who Should Use This PPF Calculator?
Salaried employees planning their Section 80C tax savings for the financial year. Young investors starting their first long-term savings account. Parents planning to open a PPF account for their children's future. Retirees deciding whether to extend their PPF account after 15 years. Anyone comparing PPF returns against FD, NPS, or ELSS to choose the right savings instrument for their risk profile and tax situation.