PPF Calculator

Calculate PPF maturity amount with interest. Free PPF calculator follows current PPF interest rate (7.1%) with year-wise breakdown of contributions.

Calculate PPF Returns

Yearly Investment (₹) ₹1,50,000

₹500₹1.5L (Max)

Interest Rate (% p.a.) 7.1%

Current PPF rate is 7.1% (set quarterly by govt)

Period (Years) 15 Yrs

Min lock-in 15 years, extendable in 5-yr blocks

Maturity Amount

₹40,68,209

Total Invested

₹22.5 L

Total Interest

₹18.18 L

Investment vs Returns

EEE Tax Benefit: PPF investment, interest earned, AND maturity amount are all completely tax-free!

Year-wise PPF Growth

Year-by-Year Breakdown

Year	Yearly Deposit	Interest Earned	Closing Balance

What is PPF?

Public Provident Fund (PPF) is a long-term savings scheme by the Government of India offering attractive interest rates and tax benefits. PPF is one of the most popular tax-saving investments because of its safety, guaranteed returns, and complete tax exemption (EEE status).

Key PPF Features

Interest Rate: 7.1% (current rate, revised quarterly)
Lock-in Period: 15 years (extendable in 5-year blocks)
Investment Limit: ₹500 minimum, ₹1.5 lakh maximum per year
Tax Benefit: Section 80C deduction up to ₹1.5L
Tax-free Returns: Interest and maturity amount completely tax-free
Safety: Government-backed, zero risk
Loan Facility: Available from year 3
Partial Withdrawal: Allowed from year 7

Why PPF is Powerful

PPF offers the rare EEE (Exempt-Exempt-Exempt) tax benefit:

Investment: Tax deduction under Section 80C
Interest Earned: Completely tax-free
Maturity Amount: Completely tax-free

For someone in 30% tax bracket, PPF's effective post-tax return is much higher than equivalent fixed deposits or bonds.

PPF: India's Most Underrated Wealth Builder

The Triple Tax Benefit

PPF is the only retail investment in India with EEE (Exempt-Exempt-Exempt) status: deposits qualify for ₹1.5L Section 80C deduction, the 7.1% interest is fully tax-free, and the maturity amount is completely tax-free. For a 30% bracket investor, this triple exemption makes PPF's effective return roughly equivalent to a 10-11% pre-tax investment. No mutual fund, FD, or stock investment matches this on a risk-adjusted basis. PPF is not exciting, but for tax-paying Indians, it is mathematically irrefutable.

The April 5th Rule

PPF interest is calculated on the lowest balance between the 5th and end of each month. Practical implication: if you deposit before April 5th, you earn interest on that money for all 12 months of the financial year. If you deposit on April 6th, you only earn interest from May onwards — losing one month of interest. Over 25 years of contributions, this single date matters: depositing on April 5th vs April 30th costs you approximately ₹50,000 in lost interest. Set a reminder for April 1st every year.

The 15+5+5 Extension Strategy

After the initial 15-year maturity, you can extend PPF in 5-year blocks indefinitely. Most account holders close at maturity — that is a mistake. Strategy: extend with new contributions for as long as you need 80C deduction (up to age 60), then extend without contributions to keep earning tax-free interest till age 70-75. A PPF opened at age 25 and continued till 70 with regular contributions becomes a ₹1+ crore tax-free corpus. The compounding power over 45 years is staggering.

Loan and Withdrawal Mechanics

PPF allows partial withdrawals from year 7 (up to 50% of balance at end of 4th preceding year) and loans from year 3 to year 6 (at PPF rate + 1%). Loans are particularly underutilized — they let you access funds without breaking the 15-year compounding chain. If you need ₹2 lakhs for a temporary need in year 4 and your PPF balance is ₹4 lakhs, take a PPF loan at 8.1% rather than personal loan at 14%. Repay over 36 months. Your PPF interest continues compounding on the full ₹4 lakhs.

Mr. Kapoor's 30-Year PPF Journey: ₹54 Lakhs Tax-Free

📖 Real Story from Our Reader

Mr. Kapoor started his PPF in 1994 with just ₹2,000 yearly. As his salary grew, he gradually increased to ₹1.5L yearly (the maximum). He extended the account in 5-year blocks even after the initial 15-year period. Today, after 30 years of consistent investing, his PPF balance is ₹54 lakhs. Total invested: ~₹22 lakhs. Total earned: ₹32 lakhs — completely TAX FREE under Section 10(11). The same money in a 30% tax bracket FD would have given him ~₹40 lakhs corpus AFTER paying ₹12 lakhs tax. PPF is not exciting, but for tax-paying Indians, it is the single best risk-free wealth builder. Period.

Common Mistakes to Avoid

After helping hundreds of readers with this specific calculation, here are the top mistakes that cost people serious money. Avoid these and you are already ahead of 80% of users:

❌ 1.

Not maxing out ₹1.5L per year (₹12,500 monthly auto-debit setup)

❌ 2.

Withdrawing prematurely instead of taking loan (loan rate is just 1% above PPF rate)

❌ 3.

Not extending after 15 years in 5-year blocks (compounding continues tax-free!)

❌ 4.

Missing April 5th deposit deadline (interest calculated on lowest balance after 5th)

❌ 5.

Closing PPF after kids no longer need it (it is YOUR retirement asset)

Written by

Anjali Mehra, CA

Frequently Asked Questions

What is the current PPF interest rate?

Current PPF interest rate is 7.1% per annum (compounded annually). The government revises rates quarterly based on G-Sec yields.

Can I withdraw PPF before 15 years?

Premature closure is allowed only after 5 years for medical emergencies, higher education, or NRI status. Partial withdrawal up to 50% is allowed from year 7.

What happens after 15 years?

You can withdraw the full amount tax-free, OR extend the account in blocks of 5 years (with or without further contributions). Many investors extend to keep earning tax-free returns.

Can I open multiple PPF accounts?

No, only one PPF account per person is allowed. You can open one PPF account each for your minor children, but combined investment across all accounts cannot exceed ₹1.5 lakh per year.

PPF vs ELSS: Which is better?

Both qualify for 80C deduction. PPF is safer with 7.1% guaranteed returns and tax-free maturity. ELSS gives higher returns (12-15%) but is market-linked. Most experts suggest a mix - ELSS for higher returns and PPF for safety component.

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Important Note

This calculator provides estimated results for informational and educational purposes only. Actual returns may vary based on market conditions, interest rate changes, taxes, and other factors. Mutual fund investments are subject to market risks. Please consult a SEBI-registered financial advisor before making investment decisions.