PPF Calculator
Public Provident Fund Calculator. Maximize your tax savings with guaranteed returns.
Max allowed is ₹1,50,000 per year
Minimum 15 years, can be extended in blocks of 5 years
Current PPF Interest Rate: 7.1% p.a. (Apr–Jun 2026)
NSI / Min. of Finance · verified 2026-06-30
Total Invested
₹22,50,000
Total Interest
₹18,18,209
Maturity Amount
₹40,68,209
How the PPF Calculator works
Reviewed by Dinesh Babu · Last updated July 2026
The Public Provident Fund (PPF) is a government-backed, long-term savings scheme that pays 7.1% per annum (FY 2025-26), compounded yearly. It is one of the very few instruments in India with full EEE tax status — the deposit is deductible, the interest is tax-free, and the maturity amount is tax-free. This calculator estimates your maturity corpus from your yearly deposit, the current rate and the tenure.
You can invest between ₹500 and ₹1,50,000 in a financial year, in a lump sum or up to 12 instalments. The account has a 15-year lock-in (counted from the end of the financial year in which you opened it), so a PPF opened in FY 2025-26 matures in FY 2040-41. After maturity you may extend it in blocks of 5 years, with or without fresh contributions.
A detail most people miss: PPF interest for a month is calculated on the LOWEST balance in the account between the 5th and the last day of that month. So a deposit made after the 5th earns nothing for that month. This is why depositing before the 5th of April each year squeezes out the maximum interest.
PPF maturity (equal yearly deposit)
FV = P × [ ((1 + r)ⁿ − 1) / r ] × (1 + r)
P = yearly deposit, r = 0.071 (7.1%), n = number of years. Assumes each deposit is made at the start of the year.
Why the timing of your deposit matters
Because interest is computed on the minimum balance between the 5th and month-end, the single most effective PPF habit is to deposit your full-year amount before the 5th of April. Doing so lets the entire sum earn interest for all 12 months of the year, instead of losing a month or more if you deposit later.
The ₹1.5 lakh ceiling is shared, not per-account
- The ₹1,50,000 annual limit is per individual across all your PPF accounts, including one you run for a minor child.
- Money deposited above ₹1.5 lakh in a year earns no interest and gets no tax benefit — it is simply refunded without interest.
- The same ₹1.5 lakh also fills your Section 80C bucket, which is shared with EPF, ELSS, life insurance premiums, home-loan principal and more.
| Feature | PPF | EPF | NPS (Tier-I) |
|---|---|---|---|
| Return | 7.1% fixed | 8.25% fixed | Market-linked (not guaranteed) |
| Who can open | Any resident | Salaried (via employer) | Any citizen 18–70 |
| Lock-in | 15 years | Till retirement/exit | Till age 60 |
| Annual limit | ₹1.5 lakh | 12% of basic + DA | No upper limit |
| Tax on maturity | Fully tax-free (EEE) | Tax-free if 5+ yrs | 60% tax-free, 40% annuity taxed |
Full ₹1.5 lakh a year for 15 years
Depositing ₹1,50,000 every year at 7.1% for 15 years gives a maturity of roughly ₹40.7 lakh. Of this, ₹22.5 lakh is your own contribution and about ₹18.2 lakh is tax-free interest — none of which is taxed on withdrawal.
A modest ₹5,000 a month
₹5,000 a month is ₹60,000 a year. Over 15 years at 7.1% this grows to about ₹16.3 lakh, of which ₹9 lakh is your money and ₹7.3 lakh is interest.
Common mistakes to avoid
- Depositing after the 5th of the month and silently losing that month's interest.
- Putting in more than ₹1.5 lakh a year expecting it to earn — the excess earns nothing.
- Treating PPF as liquid — the 15-year lock-in is real; only limited loans and partial withdrawals are allowed before then.
- Letting an account go dormant by skipping the ₹500 minimum, which needs a penalty to revive.
Frequently asked questions
What is the current PPF interest rate?+
For FY 2025-26 the PPF rate is 7.1% per annum, compounded yearly. It is set by the Ministry of Finance and reviewed every quarter, so it can change in future quarters.
What is the maximum I can invest in PPF per year?+
₹1,50,000 per financial year, with a minimum of ₹500. This limit is shared across all PPF accounts you hold, including one for a minor child. Anything above ₹1.5 lakh earns no interest and no tax benefit.
When exactly is PPF interest calculated?+
Interest for each month is calculated on the lowest balance in your account between the 5th and the last day of that month, then credited once a year at year-end. Depositing before the 5th of the month maximises your interest.
Can I extend PPF after 15 years?+
Yes. After the 15-year term you can extend in blocks of 5 years, either with fresh contributions or without. If you extend without contributing, the balance keeps earning interest and you can make one withdrawal each year.
Is PPF really tax-free?+
Yes — PPF has EEE status. Deposits qualify for deduction under Section 80C (within the ₹1.5 lakh limit), and both the interest and the final maturity amount are fully tax-free. There is no TDS on PPF.
Can I withdraw money before 15 years?+
Partial withdrawal is allowed from the 7th financial year onwards, capped at 50% of the balance at the end of the 4th preceding year. You can also take a loan against the balance between years 3 and 6.
Is PPF better than a bank FD?+
For a long horizon, usually yes — PPF's 7.1% is entirely tax-free, whereas FD interest is taxed at your slab. A 7.1% tax-free return is equivalent to well over 10% pre-tax for someone in the 30% bracket. FDs win only on liquidity and shorter tenures.
What happens if I miss a year's deposit?+
The account becomes dormant. You can revive it by paying a ₹50 penalty per missed year plus the ₹500 minimum for each of those years. It keeps earning interest even while dormant, but you cannot take loans against it until revived.