PPF Calculator
Calculate your Public Provident Fund (PPF) returns. Plan your tax-saving investments with accurate maturity projections.
PPF Investment Details
Investing $150,000 yearly for 15 years at 7.1% interest rate.
Maturity Amount
$4,068,209
After 15 years (Tax-Free)
Investment Breakdown
Year-wise Projection
| Year | Total Invested | Interest Earned | Balance |
|---|---|---|---|
| Year 1 | $150,000 | $10,650 | $160,650 |
| Year 2 | $300,000 | $32,706 | $332,706 |
| Year 3 | $450,000 | $66,978 | $516,978 |
| Year 4 | $600,000 | $114,334 | $714,334 |
| Year 5 | $750,000 | $175,701 | $925,701 |
| Year 6 | $900,000 | $252,076 | $1,152,076 |
| Year 7 | $1,050,000 | $344,524 | $1,394,524 |
| Year 8 | $1,200,000 | $454,185 | $1,654,185 |
| Year 9 | $1,350,000 | $582,282 | $1,932,282 |
| Year 10 | $1,500,000 | $730,124 | $2,230,124 |
| Year 11 | $1,650,000 | $899,113 | $2,549,113 |
| Year 12 | $1,800,000 | $1,090,750 | $2,890,750 |
| Year 13 | $1,950,000 | $1,306,643 | $3,256,643 |
| Year 14 | $2,100,000 | $1,548,515 | $3,648,515 |
| Year 15 | $2,250,000 | $1,818,209 | $4,068,209 |
PPF Key Features
- ✓Minimum lock-in period: 15 years
- ✓Minimum investment: Rs. 500/year
- ✓Maximum investment: Rs. 1.5 lakh/year
- ✓Can be extended in blocks of 5 years
- ✓Tax deduction under Section 80C
- ✓Interest earned is tax-free
- ✓Maturity amount is tax-free (EEE status)
- ✓Loan facility available after 3rd year
What is PPF (Public Provident Fund)?
The Public Provident Fund (PPF) is a government-backed long-term savings scheme in India that offers attractive interest rates, complete tax benefits, and guaranteed returns. Established in 1968, PPF remains one of the most popular and safe investment options for risk-averse investors.
Key features of PPF:
- Current interest rate: 7.1% per annum (compounded annually)
- Tenure: 15 years (extendable in 5-year blocks)
- Minimum deposit: Rs. 500 per year
- Maximum deposit: Rs. 1.5 lakh per year
- Tax status: EEE (Exempt-Exempt-Exempt)
Who can open PPF account:
- Any Indian resident individual
- Parents/guardians can open for minor children
- One PPF account per person only
- NRIs cannot open new accounts (existing continue)
- HUFs cannot open PPF accounts (from 2005)
PPF Maturity Calculation
PPF interest is calculated monthly but compounded annually. The balance considered is the minimum between the 5th and last day of each month.
PPF Maturity Amount Formula
Where:
- A= Maturity amount
- P= Annual contribution
- r= Annual interest rate (0.071 for 7.1%)
- n= Number of years (typically 15)
PPF Tax Benefits (EEE Status)
PPF is one of the few investments with Exempt-Exempt-Exempt (EEE) tax status:
First Exempt - Contribution:
- Deduction under Section 80C up to Rs. 1.5 lakh
- Combined limit with ELSS, life insurance, EPF, etc.
- Reduces taxable income directly
Second Exempt - Interest:
- All interest earned is completely tax-free
- No TDS on PPF interest
- Interest is not added to taxable income
Third Exempt - Maturity:
- Entire maturity amount is 100% tax-free
- No capital gains tax
- No wealth tax
Tax savings example (30% bracket):
- Invest Rs. 1.5 lakh → Save Rs. 45,000 in taxes
- Effective return increases significantly due to tax benefits
PPF Deposit and Interest Rules
Deposit timing strategy:
- Deposit before 5th of month to earn interest for that month
- Interest calculated on lowest balance between 5th and end of month
- Best strategy: Invest full amount before April 5th
- Lump sum early in year maximizes returns
Deposit rules:
- Minimum 1 deposit per year required
- Maximum 12 deposits per year
- Can be made in lump sum or installments
- Only multiples of Rs. 50 accepted
Interest crediting:
- Interest calculated monthly
- Credited annually on March 31st
- Rate set quarterly by government
- Compounded annually
Account continuation:
- If no deposit in a year, account becomes inactive
- Reactivation: Rs. 500 × missed years + Rs. 50 penalty per year
- Interest continues to accrue on balance even if inactive
How to Use This Calculator
Our PPF calculator helps you plan your long-term savings:
- Enter Investment Details:
- Yearly investment amount (Rs. 500 to Rs. 1.5 lakh)
- Investment period (15 years or extended)
- Current interest rate (default 7.1%)
- Choose Investment Frequency:
- Yearly lump sum (most efficient)
- Monthly SIP-style
- View Results:
- Maturity amount
- Total investment
- Total interest earned
- Year-by-year breakdown
Withdrawals and Loans from PPF
Partial Withdrawal (from 7th year):
- Allowed after completing 5 full financial years
- Maximum: 50% of balance at end of 4th preceding year
- Or 50% of balance at end of preceding year (whichever is lower)
- One withdrawal per year only
- Withdrawn amount remains tax-free
Loan Facility (3rd to 6th year):
- Available from 3rd to 6th financial year
- Maximum: 25% of balance at end of 2nd preceding year
- Interest: 1% above PPF rate (currently 8.1%)
- Repayment: Within 36 months
- Second loan after first is repaid
Premature Closure (limited):
- Allowed only after 5 years in specific cases
- Medical emergency for self/family
- Higher education expenses
- Change in residency status (becoming NRI)
- 1% interest reduction on entire balance
PPF Extension After Maturity
Extension with contribution:
- Continue for 5-year blocks
- Apply within 1 year of maturity
- Keep contributing Rs. 500 to Rs. 1.5 lakh
- One withdrawal per year (up to 60% of balance at extension start)
- Retain all tax benefits
Extension without contribution:
- No new deposits after maturity
- Balance continues earning interest
- One withdrawal per year (any amount)
- Automatic if no application submitted
Which extension to choose:
- With contribution: If you want to continue saving tax-efficiently
- Without contribution: If you need gradual access to funds
- Both maintain the tax-free status of interest
Worked Examples
15-Year PPF Investment
Problem:
Calculate maturity amount for Rs. 1.5 lakh annual investment at 7.1% for 15 years.
Solution Steps:
- 1Annual investment (P): Rs. 1,50,000
- 2Interest rate (r): 7.1% = 0.071
- 3Years (n): 15
- 4Using formula: A = P × [((1+r)^n - 1) / r] × (1+r)
- 5A = 1,50,000 × [((1.071)^15 - 1) / 0.071] × 1.071
- 6A = 1,50,000 × 27.12
Result:
Maturity amount: Rs. 40,68,209. Total invested: Rs. 22,50,000. Interest earned: Rs. 18,18,209 (tax-free).
Monthly vs Yearly Investment
Problem:
Compare investing Rs. 1.5 lakh as Rs. 12,500/month vs lump sum at start of year.
Solution Steps:
- 1Monthly: Interest calculated on amounts present on 5th of each month
- 2April-March cycle means later months earn less interest
- 3Yearly lump sum (April 1): Full amount earns interest all year
- 4Difference over 15 years: approximately Rs. 60,000-80,000
Result:
Investing lump sum in April yields ~Rs. 41.5 lakh vs ~Rs. 40.7 lakh for monthly. Invest before April 5th for maximum returns.
Tax Savings Calculation
Problem:
Calculate effective returns including tax savings for 30% tax bracket investor.
Solution Steps:
- 1Investment: Rs. 1.5 lakh/year for 15 years
- 2Tax savings: Rs. 1.5L × 30% = Rs. 45,000/year
- 3Total tax savings over 15 years: Rs. 6.75 lakh
- 4Maturity: Rs. 40.68 lakh (tax-free)
- 5Total benefit: Rs. 40.68L + Rs. 6.75L = Rs. 47.43 lakh
Result:
Effective benefit is Rs. 47.43 lakh on Rs. 22.5 lakh invested. Effective return: ~10-11% considering tax benefits.
Tips & Best Practices
- ✓Invest before the 5th of each month to earn interest for that month
- ✓Lump sum investment in April maximizes returns over the year
- ✓Maximum limit of Rs. 1.5 lakh is per person, not per account
- ✓Open PPF account for minor children for additional Section 80C benefits
- ✓Consider PPF for the debt portion of your investment portfolio
- ✓Use PPF loan facility (3rd-6th year) instead of personal loans if needed
- ✓Extend after maturity to continue tax-free compounding
- ✓PPF is ideal for retirement planning due to long tenure and guaranteed returns
Frequently Asked Questions
Sources & References
Last updated: 2026-01-22