Prepared by: FreeBytes Editorial Team · Reviewed by: FreeBytes Research Team
Methodology: We cross-check formulas, slabs, and examples against published government, regulator, lender, and scheme documentation before updating the page.
Calculations use the latest available Indian tax slabs, interest rates, and government rules. This tool is for informational purposes only and does not constitute financial or tax advice. Consult a qualified Chartered Accountant or financial advisor for decisions specific to your situation.
PPF Calculator
Calculate your Public Provident Fund returns and plan your long-term tax-saving investments.
How to Use the PPF Calculator?
Enter your annual investment amount and tenure to calculate your PPF maturity amount and returns.
What is PPF?
Public Provident Fund (PPF) is a long-term investment scheme backed by the Government of India. Key features include:
- 15-year lock-in period with option to extend
- Tax exemption under Section 80C (EEE status)
- Tax-free interest and maturity proceeds
- Loan facility after 3rd year
- Partial withdrawal after 7th year
PPF Investment Rules
- Minimum Investment: ₹500 per year
- Maximum Investment: ₹1,50,000 per year
- Interest Calculation: On minimum balance between 5th and last day of month
- Interest Compounding: Annual compounding
- Tax Benefits: Triple exemption (EEE) - investment, interest, and maturity
PPF Benefits
- Guaranteed Returns: Government-backed scheme with assured returns
- Tax Efficiency: No tax on investment, interest, or maturity
- Loan Facility: Borrow up to 25% of balance after 3rd year
- Partial Withdrawal: Withdraw up to 50% after 7th year
- Extension Option: Extend for 5-year blocks after maturity
How PPF Interest Is Calculated
PPF interest is calculated on the lowest balance in your account between the 5th and the last day of each month, then credited once a year at the end of the financial year. This single rule has a big practical consequence: any deposit you make after the 5th of a month earns no interest for that entire month. To maximise returns, always deposit before the 5th — ideally make your full annual contribution between the 1st and 5th of April, so it earns interest for all twelve months of the year.
The yearly balance compounds annually, following A = P × (1 + r)t for a one-time deposit, or the future-value-of-an-annuity formula for regular yearly contributions. The interest rate is set by the government every quarter (currently around 7.1% per annum).
Worked Maturity Example
Example: If you invest the maximum ₹1,50,000 every year for 15 years at 7.1%, your total deposits of ₹22,50,000 grow to approximately ₹40.68 lakh at maturity — meaning roughly ₹18 lakh comes purely from compounding interest, entirely tax-free. Because PPF enjoys EEE (Exempt-Exempt-Exempt) status, neither the contributions, the annual interest, nor the final maturity amount is taxed, which makes the effective return considerably higher than a comparable taxable fixed deposit.
PPF vs Other Section 80C Options
| Feature | PPF | ELSS | Tax-Saving FD |
|---|---|---|---|
| Lock-in | 15 years | 3 years | 5 years |
| Returns | ~7.1% fixed | Market-linked | 6–7% fixed |
| Risk | None (govt-backed) | High | None |
| Taxation of returns | Fully tax-free | LTCG above ₹1L taxed | Interest taxable |
Smart PPF Strategies
- Deposit early: Invest before the 5th of April each year to earn a full year of interest on the entire amount.
- Extend in blocks: After 15 years you can extend in 5-year blocks, with or without further contributions, to keep earning tax-free interest.
- Use the loan facility: Between years 3 and 6 you can borrow against your PPF balance at a low rate instead of breaking other investments.
- Open accounts for family: A separate PPF account for a spouse or child lets the household shelter more than ₹1.5 lakh per year in this tax-free instrument.
Frequently Asked Questions — PPF Calculator
PPF (Public Provident Fund) is a government-backed long-term savings scheme in India with a 15-year lock-in. Any Indian resident individual can open a PPF account at a post office or designated bank. NRIs cannot open new PPF accounts, though existing accounts can be continued till maturity.
The PPF interest rate is set by the Government of India each quarter. It has historically ranged between 7.1% and 8%. Interest is calculated on the minimum balance between the 5th and last day of each month and credited annually on March 31st.
The minimum annual investment is ₹500 and the maximum is ₹1,50,000 per financial year. You can invest in a lump sum or up to 12 instalments per year. Investing before the 5th of each month ensures that month's balance earns interest for that month.
PPF enjoys Triple Tax Exemption (EEE status): (1) Investment up to ₹1.5 lakh is deductible under Section 80C, (2) interest earned is fully tax-free, and (3) the maturity amount is completely exempt from tax. This makes PPF one of the most tax-efficient instruments available to Indian investors.
Partial withdrawal is allowed from the 7th financial year onwards — up to 50% of the balance at the end of the 4th year or preceding year, whichever is lower. Full premature closure is permitted after 5 years only under specific grounds such as serious illness or higher education.
Yes. After the 15-year maturity, you can extend in blocks of 5 years — with or without fresh contributions. Extending with contributions retains Section 80C benefits and tax-free interest. Without contributions, the existing balance continues to earn interest tax-free with full liquidity after each year.