PPF Calculator

🏦
Enter your yearly investment, time period, and interest rate — maturity value updates instantly as you adjust the sliders.
📊

PPF Calculator — Public Provident Fund

Government-backed EEE investment with 7.1% p.a. interest — calculate your maturity corpus

₹ 1,50,000
₹500₹1.5L
15 Yrs
Yrs
15 Yrs50 Yrs
7.1 %
%
1%15%
Maturity Value
₹40,68,209
at end of tenure
Interest Earned
₹18,18,209
tax-free returns
Total Invested
₹22,50,000
principal amount
Invested Amount ₹22,50,000 55%
Interest Earned ₹18,18,209 45%
Principal vs. Interest Breakdown
Invested 55%
Interest 45%
Year Opening Balance Deposit Interest Earned Closing Balance
🛡️

Government Guaranteed

PPF is backed by the Government of India — 100% safety on both principal and interest, with zero default risk.

💸

EEE Tax Status

Deposits, interest, and maturity — all three are fully tax-exempt under Section 80C and Section 10 of the Income Tax Act.

📅

15-Year Lock-in

PPF matures in 15 years. Extend in 5-year blocks with or without deposits. Maximum contribution is ₹1.5 lakh per year.

Understanding PPF

What is PPF and Why is it Still a Powerful Investment?

A complete guide to Public Provident Fund for Indian investors

What is a PPF Account?

A Public Provident Fund (PPF) account is a long-term, government-backed savings scheme in India that offers guaranteed, tax-free returns. Introduced in 1968, it remains one of the most trusted investment instruments for retail and HNI investors alike.

The scheme carries zero default risk since the entire corpus — principal and accumulated interest — is guaranteed by the Government of India. Interest is compounded annually and credited to the account at the end of each financial year, making it a powerful vehicle for long-term wealth creation through the force of compounding.

EEE Tax Benefits — Three Layers of Exemption

PPF is classified as an "Exempt, Exempt, Exempt" (EEE) investment — the rarest and most powerful tax status available under Indian tax law. This means:

Exempt 1 — Invest
Section 80C Deduction
Contributions up to ₹1.5 lakh per year are deductible under the old tax regime.
Exempt 2 — Earn
Tax-Free Interest
All interest credited annually is fully exempt from income tax in your hands.
Exempt 3 — Withdraw
Tax-Free Maturity
The entire maturity amount at 15 years is completely tax-free.
How PPF Interest is Calculated

PPF interest is computed on the minimum balance between the 5th and last day of each month. To maximize returns, always deposit before the 5th of April each financial year — this ensures you earn interest on your deposit for the entire year.

Maturity = P × [((1 + r)ⁿ − 1) / r] × (1 + r)
P = Annual deposit  |  r = Annual interest rate (e.g., 0.071 for 7.1%)  |  n = Number of years  |  Interest compounds annually at end of each financial year

For example, depositing ₹1,50,000 per year for 15 years at 7.1% p.a. yields a maturity value of approximately ₹40,68,209 — of which ₹22,50,000 is your invested principal and ₹18,18,209 is entirely tax-free interest earned.

Key Rules & Limits to Remember
💰 Contribution Limits

Minimum ₹500 and maximum ₹1,50,000 per financial year on a single PAN. Contributions in excess of the limit earn no interest and are not deductible.

📅 Lock-in & Extension

Mandatory 15-year lock-in period. After maturity, extend in 5-year blocks — with deposits (active) or without deposits (passive, just to earn interest).

🏦 Partial Withdrawal

Partial withdrawals are permitted from the 7th financial year onwards, up to 50% of the balance at the end of the 4th preceding year.

📋 Loan Facility

Loans against PPF are available from the 3rd to 6th year at 1% above the PPF rate. A convenient feature for short-term liquidity needs without breaking the deposit.

5 Tips to Maximise Your PPF Returns
1
Invest a lump sum before April 5th — depositing the full ₹1.5 lakh at the start of the financial year ensures you earn interest on the maximum amount for the entire year, adding thousands more to your corpus over 15 years.
2
Never miss a year — PPF requires a minimum deposit of ₹500 each financial year to keep the account active. A dormant account can be reactivated with a penalty of ₹50 per year plus arrear minimum deposits.
3
Extend after maturity — if you don't need the funds at 15 years, extend with contributions for 5 more years. The compounding at this stage is extremely powerful since your base is already large.
4
Open accounts for family members — you can open PPF accounts in the name of a minor child or a spouse (with no joint accounts allowed). This multiplies the ₹1.5L deduction benefit across your household.
5
Use the loan facility wisely — instead of premature withdrawal, use the PPF loan facility (available from year 3) for short-term needs at a low rate of 1% above PPF rate, preserving your compounding base intact.