PPF Calculator

PPF maturity uses compounded annual interest on contributions made within the financial year. Formula: maturity = sum of [annual deposit × (1 + r)^(years remaining)]. Current rate is 7.1% (rates revise quarterly). Example: ₹1.5 lakh annual deposit for 15 years at 7.1% gives roughly ₹40.6 lakh at maturity. Of that, ₹22.5 lakh is contribution and ₹18.1 lakh is interest. Deposits made before the 5th of each month earn interest for that month. Tax-free maturity, EEE status. The calculator handles partial year deposits and step-up scenarios accurately.

Minimum PPF deposit per year is ₹500. Maximum is ₹1.5 lakh per financial year. You can deposit in lump sum or in up to 12 instalments per year. Going below ₹500 in a year makes the account inactive — pay a ₹50 penalty plus minimum deposit to revive. Going above ₹1.5 lakh is technically allowed but interest isn't paid on the excess, and the over-deposit is returned without interest. The ₹1.5 lakh cap also caps your 80C deduction for PPF. Plan to maximise the cap for tax efficiency. The calculator validates these limits.

PPF interest is calculated monthly but compounded annually. Each month, interest is computed on the lowest balance between the 5th and the end of the month. So deposit before the 5th to earn interest for the full month. The total monthly interest is added to the balance at the end of the financial year (March 31). From April onwards, the new balance starts earning interest. Annual compounding means the next year's interest includes the previous year's interest. Over 15 years at 7.1%, this compounding effect is substantial. The calculator shows year-wise interest and balance.

Yes, after the initial 15-year lock-in, you can extend PPF in 5-year blocks indefinitely. Two options: extend with continued contributions, or extend without further contributions (existing balance keeps earning interest). Notify the bank or post office within one year of maturity using Form H. Without notification, the account is treated as extended without contributions by default. Extension is a great way to keep the EEE benefit running. Many investors use PPF as part of their retirement corpus by extending it twice (to 25 years total). The calculator handles extended-tenure projections.

Deposit before the 5th of each month — that's the most efficient timing. Interest is calculated on the lowest balance between the 5th and the end of the month, so a deposit on the 4th earns full month's interest, while a deposit on the 6th earns nothing for that month. The best month to make a lump-sum deposit is April (start of financial year), so the full ₹1.5 lakh earns interest for all 12 months of that financial year. ₹1.5 lakh in April vs March can mean ₹10,000+ extra per year over 15 years.

At 7.1% with maximum ₹1.5 lakh annual deposit, PPF alone gives roughly ₹40.6 lakh in 15 years — well short of ₹1 crore. To reach ₹1 crore through PPF, you'd need extensions. Two consecutive 5-year extensions (25 years total) with full ₹1.5 lakh contribution gives roughly ₹1.03 crore. That's the realistic path. PPF rewards patience over speed. For ₹1 crore in 15 years, you need additional vehicles — equity mutual funds (SIPs at 12% give ₹1 crore with ~₹20,000/month for 15 years). The calculator shows both PPF-only and combined scenarios.

For long-term goals (10+ years), PPF generally beats FD on a tax-adjusted basis. PPF rate is currently 7.1%, fully tax-free. FD rate is 6.5-7.5%, fully taxable as per slab. So a 7% FD in the 30% tax bracket gives only 4.9% post-tax — much less than PPF's 7.1% tax-free. PPF also enjoys EEE benefit (deduction under 80C, tax-free growth, tax-free maturity). FD is more flexible (any tenure, easier withdrawal) but loses on tax efficiency. Use FD for short-term goals, PPF for long-term. The calculator can compare post-tax yields.