PPF Calculator
Calculate Public Provident Fund maturity value, interest, and guaranteed tax-free wealth
Interest calculation assumes annual deposits are completed before April 5th of each financial year. Interest is calculated on the minimum balance between the 5th and end of each month and credited on March 31.
How Does It Work?
Free PPF Calculator. Calculate maturity value, total interest, and year-by-year balance for annual deposits up to ₹1.5 Lakh with 5-year tenure extensions.
PPF interest is compounded annually on March 31 and calculated monthly on the lowest balance between the close of the 5th day and the end of each month. Annual investments qualify for Section 80C deduction.
Real-World Worked Example
An investor deposits the maximum statutory limit of ₹1,50,000 at the beginning of every financial year (before April 5th) for the standard 15-year maturity period at 7.1% interest.
- •Annual Investment: ₹1,50,000 every April
- •Total Principal Deposited over 15 Years: 15 × ₹1,50,000 = ₹22,50,000
- •Year 1 Closing Balance: ₹1,50,000 + 7.1% interest (₹10,650) = ₹1,60,650
- •Year 5 Closing Balance: ₹8,98,071 (Principal: ₹7,50,000; Interest: ₹1,48,071)
- •Year 10 Closing Balance: ₹21,65,585 (Principal: ₹15,00,000; Interest: ₹6,65,585)
- •Year 15 Maturity Balance: ₹40,68,209 (Total Interest Earned: ₹18,18,209)
- •Tax Liability: ₹0 (100% Tax-Free under EEE tax status)
Takeaway: Depositing by April 5th maximizes interest yield, earning a full 12 months of interest in Year 1 rather than partial compounding.
Complete Guide & Practical Explanations
The Public Provident Fund (PPF) remains one of India most trusted and enduring long-term investment vehicles. Introduced by the National Savings Institute under the Ministry of Finance in 1968, the scheme was designed to mobilize small savings while providing sovereign capital security and generous tax incentives. With its unmatched Exempt-Exempt-Exempt (EEE) tax designation, PPF represents a cornerstone asset for risk-averse investors and long-term wealth builders alike.
Understanding the operational rules of PPF is essential for maximizing its financial benefits. The scheme mandates a minimum annual deposit of ₹500 and caps contributions at ₹1,50,000 per financial year across all accounts held by an individual, including accounts opened on behalf of minor children. The default tenure is 15 complete financial years, starting from the end of the financial year in which the initial deposit was made. The interest rate, currently set by the Ministry of Finance at 7.1% per annum, is backed by a sovereign guarantee, meaning there is zero credit risk or market volatility. In addition, PPF balances enjoy statutory legal protection under the Public Provident Fund Act, ensuring that your savings cannot be attached by any court decree or creditor.
A unique feature of the PPF scheme is its monthly interest calculation rule. While interest is officially credited to your account at the end of the financial year on March 31, the interest for any given month is calculated on the lowest balance recorded between the close of the fifth day and the end of that month. Consequently, investors who deposit their savings between the first and fifth of each month earn interest for that entire month, whereas deposits made on or after the sixth earn zero interest for that 30-day period. Investors also enjoy liquidity through loan facilities between the 3rd and 6th financial years, followed by partial withdrawal permissions starting in the 7th financial year.
To observe the power of compounding within a PPF account, consider an investor who deposits the statutory maximum of ₹1,50,000 every year on April 4th. Over the mandatory 15-year holding period, the investor deposits a cumulative total of ₹22,50,000. Thanks to steady annual compounding at 7.1%, the total interest earned over the 15-year period reaches an impressive ₹18,18,209. Upon maturity, the investor receives a tax-free payout of ₹40,68,209. If the investor chooses to extend the account for an additional five-year block while continuing annual ₹1,50,000 deposits, the corpus swells to ₹66,58,288 at Year 20. Extending for a second block to Year 25 produces a substantial nest egg of ₹1,03,08,015 (₹1.03 Crore) from a principal investment of only ₹37,50,000.
To get the most out of your PPF investment, consider setting up an automated standing instruction via net banking to transfer funds on the first of April every year. Additionally, pair your debt-oriented PPF investments with equity mutual funds tracked through our [SIP Calculator](/sip-calculator) and monitor your overall interest growth using the [Compound Interest Calculator](/compound-interest-calculator) to achieve a balanced, inflation-beating portfolio.
Practical Tips
- ✓Deposit your annual PPF contribution between April 1st and April 5th each year to maximize monthly interest compounding across the entire 12-month cycle.
- ✓Extend your account in blocks of 5 years after maturity if you do not need immediate liquidity; you can choose extensions with or without ongoing fresh contributions.
- ✓Open a PPF account for your minor child to cultivate long-term savings habits, noting that the combined annual ceiling across parent and child accounts remains ₹1,50,000.
Common Mistakes to Avoid
- ⚠Depositing after the 5th of the month, which forfeits interest accrual for that entire calendar month.
- ⚠Depositing more than ₹1,50,000 in a single financial year; any excess amount earns zero interest and does not qualify for Section 80C deduction.
- ⚠Prematurely closing the account before completing the mandatory 15-year lock-in period; premature closure is strictly restricted to medical emergencies or higher education after 5 years.
Related Guides & Calculation Deep Dives
All guidesHow EPF Works: Contributions, Interest and Withdrawal
The Employees' Provident Fund (EPF) deducts 12% of your Basic Salary + DA every month, matched by a 12% employer contribution (split into 8.33% EPS pension capped at ₹1,250 and 3.67% EPF). The accumulated balance earns 8.25% annual interest (FY 2024-25), compounding monthly and credited annually.
PPF Explained: Rules, Interest and Is It Worth It?
The Public Provident Fund (PPF) is a 15-year sovereign-backed savings scheme offering 7.10% annual compounding with complete EEE (Exempt-Exempt-Exempt) tax status. Depositing the maximum ₹1,50,000 every year results in a guaranteed, 100% tax-free maturity corpus of ₹40,68,209.
NPS for Beginners: How Much Pension Will You Get?
The National Pension System (NPS) is a government-regulated market-linked pension scheme. Investing ₹10,000 monthly from age 35 to 60 at an expected 10% annual return builds a corpus of ₹1,33,78,903. At age 60, you withdraw 60% (₹80.27 Lakh) completely tax-free, while the remaining 40% (₹53.51 Lakh) buys an annuity delivering ~₹29,000 monthly pension.
PPF Calculator FAQs
Common questions, calculation formulas, and usage rules.
Exempt-Exempt-Exempt (EEE) means your PPF deposit qualifies for a tax deduction under Section 80C (up to ₹1.5 Lakh), the annual interest accumulated is completely tax-free under Section 10(11), and the final maturity proceeds are 100% exempt from income tax.
Yes. Upon completing the initial 15-year tenure, you can extend your account indefinitely in blocks of 5 years. You must submit Form H to your bank or post office within one year of maturity to extend with fresh contributions.