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What is a PPF Calculator?
The Public Provident Fund remains one of the few investment options in India that's completely government-backed, tax-free at every stage, and still delivers a steady, respectable return year after year. This calculator shows exactly how a fixed yearly deposit into your PPF account grows over the mandatory 15-year lock-in, using the current interest rate declared by the government each quarter.
PPF Maturity Formula
The calculator compounds annually, adding each year's deposit before applying interest for that year:
This step repeats once for every year of the tenure (typically 15 years), since PPF interest is credited annually, not monthly.
Worked Example
Deposit the maximum PPF limit of ₹1,50,000 every year for 15 years at the current rate of 7.1% per annum:
... (compounds each subsequent year) ...
Year 15: Maturity Value ≈ ₹40,64,000
Over 15 years you'd have deposited a total of ₹22,50,000 from your own pocket, and the account would have earned roughly ₹18,14,000 in interest — all of it completely tax-free.
How to Use This Calculator
- Enter your Annual Investment (up to ₹1,50,000 to claim the full Section 80C benefit).
- Enter the Tenure in years (default and minimum is 15).
- Enter the current Interest Rate as declared by the government.
- Click Calculate to see your maturity value and total interest earned.
If you're deciding between PPF and market-linked options for retirement, the NPS Calculator makes a useful comparison since it also carries tax benefits under Section 80C.
Who Should Use This Calculator
This calculator suits risk-averse savers who want a government-guaranteed, tax-free return rather than market-linked growth — typically salaried individuals maxing out Section 80C, parents saving for a child's future (PPF accounts can be opened in a minor's name), and self-employed professionals or freelancers who don't have access to EPF and want a long-term, low-risk savings vehicle instead. It's also useful for anyone comparing PPF against other 80C options like ELSS mutual funds, life insurance, or five-year tax-saving FDs, since PPF is one of the few instruments offering "EEE" (Exempt-Exempt-Exempt) tax treatment — deduction on deposit, tax-free interest, and tax-free maturity. Because of the mandatory 15-year lock-in (extendable in 5-year blocks), this calculator is best used for long-horizon goals like retirement or a child's higher education rather than short-term savings needs.
Frequently Asked Questions
Q: What is the current PPF interest rate?
A: The PPF interest rate is set by the Ministry of Finance and reviewed quarterly. As of the most recent notification it stood at 7.1% per annum, though this rate fluctuates depending on prevailing bond yields — always confirm the current quarter's rate on the India Post or your bank's PPF page before finalising long-term plans.
Q: What is the minimum and maximum I can deposit in a PPF account each year?
A: You must deposit at least ₹500 per financial year to keep the account active, and can deposit up to ₹1,50,000 per year to claim the full Section 80C deduction. Deposits beyond ₹1,50,000 do not earn interest and are not eligible for tax benefit, so it's rarely useful to exceed this limit.
Q: Can I withdraw money from PPF before 15 years?
A: Partial withdrawals are allowed starting from the 7th financial year, subject to a cap (typically the lower of 50% of the balance at the end of the 4th preceding year, or the immediately preceding year). Premature closure of the entire account before 15 years is allowed only in specific cases like serious illness or higher education, usually with a 1% interest rate reduction.
Q: What happens after my PPF account matures in 15 years?
A: You have three options: withdraw the entire maturity amount tax-free, extend the account for another block of 5 years while continuing to make deposits (and earning interest), or extend it without making further deposits while it continues to earn interest on the existing balance.
Q: Can I have more than one PPF account?
A: No, an individual can hold only one PPF account in their own name (a separate account can additionally be opened on behalf of a minor child). Multiple accounts in the same name are not permitted, and if discovered, the second account may not earn interest and its balance may need to be merged or closed.
PPF vs Other Section 80C Tax-Saving Options
PPF competes with several other Section 80C instruments for a taxpayer's ₹1.5 lakh deduction limit, and each has a different risk-return-liquidity trade-off. ELSS (Equity Linked Savings Scheme) mutual funds carry only a 3-year lock-in and have historically delivered higher long-term returns than PPF's fixed rate, but their returns are market-linked and can be negative in a bad year. Five-year tax-saving fixed deposits offer a guaranteed rate similar to PPF but are fully taxable on the interest earned, unlike PPF's tax-free interest. Life insurance premiums claimed under 80C build a much smaller corpus for the same premium compared to PPF or ELSS, since a large part of the premium pays for the insurance cover itself rather than for growth. For someone who wants zero risk, a long investment horizon, and doesn't mind the 15-year lock-in, PPF remains hard to beat on a post-tax basis; for someone comfortable with market ups and downs and a shorter horizon, ELSS often wins purely on returns.
More PPF Examples at Different Contribution Levels
| Annual Deposit | Tenure | Total Deposited | Maturity Value (approx., 7.1%) |
|---|---|---|---|
| ₹50,000 | 15 years | ₹7,50,000 | ≈ ₹13,55,000 |
| ₹1,00,000 | 15 years | ₹15,00,000 | ≈ ₹27,09,000 |
| ₹1,50,000 | 25 years (extended) | ₹37,50,000 | ≈ ₹1,03,08,000 |
Extending your PPF account for two additional 5-year blocks after the initial 15-year term (a total of 25 years) roughly doubles the maturity value compared to stopping at 15 years, even at the same annual deposit — a powerful reason to keep the account running well past its minimum tenure if you don't need the money immediately.
It's also worth noting that depositing the full ₹1,50,000 early in the financial year (say in April, rather than waiting until March) earns interest for the entire year instead of just one month, since PPF interest is calculated on the lowest balance between the 5th and last day of each month. Over a 15-year tenure, consistently depositing early each April instead of late each March can add a noticeably larger sum to the final maturity value purely from this timing difference, at no extra cost to the depositor.
📅 Last reviewed: July 2026 · Formulas verified against RBI/SEBI/IT Dept guidelines.