What This Calculator Does
This PPF (Public Provident Fund) calculator estimates the maturity value of your investment over 15 years, based on your annual contribution and the current PPF interest rate set by the Government of India. It shows year-by-year balance, total interest earned, and total amount invested.
Inputs Explained
- Yearly Investment (₹): Amount you plan to invest each year. Minimum ₹500, maximum ₹1,50,000 per financial year.
- Interest Rate (% p.a.): Current PPF rate. As of late 2024 / early 2025 it has been 7.1%. The government revises it quarterly.
- Tenure (Years): Default 15 years (PPF lock-in). Can be extended in 5-year blocks afterwards.
How It Works
Each year, your contribution is added to the existing balance and interest is compounded annually on the year-end balance. The PPF rules assume the deposit is made by 5th of April for full-year interest. The calculator iterates year-by-year, applying compound interest at the end of each year.
Formula / Logic Used
PPF Calculator
Plan your PPF investment with year-wise interest, balance, and maturity amount.
Step-by-Step Example
Yearly Investment: ₹1,50,000 (maximum allowed)
Interest Rate: 7.1% p.a.
Tenure: 15 years
Total Invested: ₹22,50,000
Total Interest Earned: ₹18,18,209 (approx.)
Maturity Amount: ₹40,68,209 (approx., tax-free under EEE category)
Use Cases
- Long-term tax-free savings: Plan how much your PPF will grow over 15 years to set realistic financial goals.
- Tax planning: PPF qualifies for Section 80C deduction. Use this to optimize your annual ₹1.5 lakh limit.
- Retirement planning: After 15 years, extend in 5-year blocks. See how much extending adds to your corpus.
- Children's education fund: Open a PPF account in your child's name to fund higher education tax-free.
- Comparing investment options: Benchmark PPF returns against FD, NSC, and ELSS for fixed-income allocation.
Assumptions and Limitations
- PPF interest rates are revised quarterly by the Government of India. The rate you enter is held constant across all years.
- Maximum annual deposit is ₹1,50,000 across all your PPF accounts combined (including minor accounts you operate).
- Withdrawals before the 7th year are not allowed except for specific emergencies. Partial withdrawals are allowed from year 7 onwards.
- The calculator does not account for the small administrative differences between deposits made before vs after the 5th of April.
Frequently Asked Questions
What is the current PPF interest rate?
The PPF interest rate is reviewed quarterly by the Ministry of Finance. As of 2024–early 2025, it has been 7.1% per annum. Always verify the current rate from India Post or your bank before calculating final returns.
Is PPF interest taxable?
No. PPF falls under the EEE (Exempt-Exempt-Exempt) tax category. The investment qualifies for Section 80C deduction, the interest earned is tax-free, and the maturity amount is also tax-free.
Can I deposit more than ₹1.5 lakh in a year?
No. The annual deposit limit is ₹1,50,000 across all PPF accounts you operate, including minor accounts. Deposits beyond this limit do not earn interest and are not eligible for tax deduction.
What happens after the 15-year lock-in?
You can withdraw the entire maturity amount tax-free, or extend the account in blocks of 5 years with or without further contributions. Extension lets the corpus continue to grow.
Can I take a loan against my PPF?
Yes. Loans are allowed from the 3rd to 6th year of the account, up to 25% of the balance at the end of the second year preceding the loan year. Interest on the loan is 1% above the PPF rate.
How is interest calculated each year?
Interest is calculated on the lowest balance in the account between the 5th and the last day of each month, then credited at the end of the financial year. To maximize interest, deposit before the 5th of April each year.
Is partial withdrawal allowed?
Yes, from the 7th year onwards, you can withdraw up to 50% of the balance at the end of the 4th preceding year, once per financial year.
Can NRIs open a PPF account?
NRIs cannot open new PPF accounts. However, an Indian resident who becomes an NRI after opening a PPF can continue contributions until maturity, but cannot extend it after the 15-year term.
Sources and References
- India Post — PPF Scheme — Official PPF scheme details from India Post.
- Ministry of Finance — Small Savings Schemes — Source for current PPF interest rates and rule changes.
- Income Tax India — Section 80C — Tax deduction rules covering PPF investments.
- PPF Act 1968 — The Public Provident Fund Act and amendments.