What is the Public Provident Fund (PPF)?
The Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India. You can open an account at a post office or a bank and deposit between ₹500 and ₹1.5 lakh every financial year. Your money earns a government-notified rate, currently 7.1% per year, compounded annually, and the account runs for 15 years.
PPF is loved by salaried people, self-employed professionals and homemakers because the returns are sovereign-guaranteed and fully tax-free. This PPF calculator shows your maturity amount, total interest and a year-wise growth chart for any yearly deposit and tenure from 15 to 30 years.
PPF Account Rules at a Glance
| Feature | Rule |
|---|---|
| Interest rate | 7.1% p.a., revised every quarter by the Ministry of Finance |
| Minimum deposit | ₹500 per financial year |
| Maximum deposit | ₹1,50,000 per financial year (all PPF accounts together) |
| Lock-in | 15 years; extendable in blocks of 5 years |
| Deposits | Lump sum or up to 12 instalments a year |
| Loan | Available from the 3rd to the 6th financial year |
| Partial withdrawal | From the 7th financial year, up to 50% of the balance at the end of the 4th preceding year |
| Who can open | Resident Indians; one account per person (a guardian can open one for a minor). Non-Resident Indians cannot open a new account |
The financial year runs from 1 April to 31 March, and the first year counts from the account opening date. The rule of one account per person means that opening a second PPF account in your own name is not allowed.
How is PPF Interest Calculated? (Formula)
PPF interest is calculated every month on the lowest balance between the 5th and the last day of the month and credited at the end of the financial year. So a deposit made on or before the 5th of a month earns interest for that whole month.
If you deposit the whole year’s amount before 5 April, the calculation becomes simple annual compounding, and this is what the calculator uses:
r = PPF interest rate (for example 7.1% = 0.071)
Tip: Deposit your yearly amount before 5 April to earn interest on the full amount from the first month. Depositing ₹12,500 each month on or before the 5th gives a slightly lower result than a single April deposit.
PPF Maturity Amount: Examples
The figures below assume a rate of 7.1% and a deposit made every year before 5 April.
| Yearly deposit | Tenure | Maturity amount |
|---|---|---|
| ₹12,000 | 15 years | ₹3,25,457 |
| ₹50,000 | 15 years | ₹13,56,070 |
| ₹1,00,000 | 15 years | ₹27,12,139 |
| ₹1,50,000 | 15 years | ₹40,68,209 |
| ₹1,50,000 | 20 years | ₹66,58,288 |
| ₹1,50,000 | 25 years | ₹1,03,08,015 |
| ₹1,50,000 | 30 years | ₹1,54,50,911 |
Example: PPF crorepati
Investing the maximum ₹1.5 lakh every year for 25 years (the 15-year account extended twice) builds about ₹1.03 crore. Your own deposits are ₹37.5 lakh, so more than ₹65 lakh is tax-free interest.
PPF Tax Benefits (EEE)
- Exempt on deposit: up to ₹1.5 lakh a year is deductible under Section 80C in the old tax regime.
- Exempt on interest: the interest earned every year is tax-free.
- Exempt on maturity: the maturity amount is fully tax-free.
Because of this EEE status, a PPF rate of 7.1% is equal to a much higher pre-tax return from a fixed deposit, especially for people in the 20% or 30% tax slab.
PPF Extension, Withdrawal and Loan
Extending the account after 15 years
After maturity you have three choices: close the account and take the money, extend it for 5 years with fresh deposits, or extend it without deposits (the balance keeps earning interest and you can withdraw once a year). This calculator lets you set a tenure of up to 30 years to see the effect of extensions.
Partial withdrawal and loan
- From the 7th financial year you can withdraw up to 50% of the balance at the end of the 4th year before the year of withdrawal.
- A loan against PPF is available from the 3rd to the 6th financial year, at a rate slightly above the PPF rate.
- Premature closure is allowed after 5 years only for specific reasons such as serious illness or higher education, with a small cut in interest.
How to Use This PPF Calculator
- Enter your yearly deposit (₹500 to ₹1,50,000).
- Choose the time period: 15 years or longer, in steps of 5 years if you plan to extend.
- Check the interest rate. It starts at the current PPF rate of 7.1% and you can change it to test other rates.
- Read the total invested, interest earned and maturity value, then open Preview & Save to get an A4 report.
PPF vs EPF vs SSY vs FD
| PPF | EPF/VPF | SSY | Bank FD | |
|---|---|---|---|---|
| Rate | 7.1% | 8.25% | 8.2% | About 6% to 7.5% |
| Tax on interest | None | None up to ₹2.5 lakh contribution a year | None | Taxable |
| Open to | Anyone | Salaried employees | Girl child (to age 10) | Anyone |
| Lock-in | 15 years | Till retirement | 21 years | As chosen |
Salaried employees already get EPF, so PPF works well as an extra tax-free, safe layer. See our EPF calculator, VPF calculator and SSY calculator to compare them with your own numbers.
PPF Investment Strategy: How to Get the Most
- Deposit before the 5th of April each year if you can. You get interest on the full amount for all 12 months.
- Extend in 5-year blocks with deposits to keep compounding tax-free. The longer you stay, the bigger the effect of compounding.
- A spouse can open a separate PPF with its own ₹1.5 lakh yearly limit, which doubles the family’s tax-free savings.
- Use it as your debt allocation. PPF gives a guaranteed, tax-free return, so many investors keep a fixed share of their portfolio in it and invest the rest in equity through a SIP.
A ₹12,500 monthly deposit reaches the yearly limit of ₹1.5 lakh. If your budget is lower, even ₹1,000 a month (₹12,000 a year) grows to about ₹3.25 lakh in 15 years.
Common PPF Mistakes
- Missing the minimum ₹500 deposit in a year and having the account become inactive (it can be revived with a small penalty).
- Depositing after the 5th of the month and losing that month’s interest.
- Depositing more than ₹1.5 lakh in a year. The extra amount earns no interest and is returned.
- Forgetting to submit the extension form after 15 years and losing the ability to deposit.