PPF Calculator — Public Provident Fund Calculator
| Year | Cal. Year | Investment (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|---|
| 1 | 2027 | 1,50,000 | 10,650 | 1,60,650 |
| 2 | 2028 | 1,50,000 | 22,056 | 3,32,706 |
| 3 | 2029 | 1,50,000 | 34,272 | 5,16,978 |
| 4 | 2030 | 1,50,000 | 47,355 | 7,14,334 |
| 5 | 2031 | 1,50,000 | 61,368 | 9,25,701 |
| 6 | 2032 | 1,50,000 | 76,375 | 11,52,076 |
| 7 | 2033 | 1,50,000 | 92,447 | 13,94,524 |
| 8 | 2034 | 1,50,000 | 1,09,661 | 16,54,185 |
| 9 | 2035 | 1,50,000 | 1,28,097 | 19,32,282 |
| 10 | 2036 | 1,50,000 | 1,47,842 | 22,30,124 |
| 11 | 2037 | 1,50,000 | 1,68,989 | 25,49,113 |
| 12 | 2038 | 1,50,000 | 1,91,637 | 28,90,750 |
| 13 | 2039 | 1,50,000 | 2,15,893 | 32,56,643 |
| 14 | 2040 | 1,50,000 | 2,41,872 | 36,48,515 |
| 15 | 2041 | 1,50,000 | 2,69,695 | 40,68,209 |
PPF interest rate (currently 7.1% p.a.) is set by the Government of India and reviewed quarterly. Verify the current rate at the RBI or India Post website before making investment decisions.
What is PPF?
The Public Provident Fund (PPF) is a long-term government-backed savings scheme introduced in India in 1968. It is one of the most popular tax-saving instruments among Indian salaried employees and self-employed individuals. PPF accounts can be opened at any post office or authorized bank branch, and since 2019, they can be managed fully online.
PPF has a mandatory 15-year lock-in period, after which it can be extended in blocks of 5 years. The interest rate is determined by the Government of India and currently stands at 7.1% per annum. Interest is compounded annually on 31 March each year. The maximum annual investment is ₹1,50,000 — and this limit applies across all PPF accounts held by a person (you cannot hold more than one PPF account in your own name).
PPF Formula
Unlike FDs which use a standard compound interest formula, PPF is calculated year by year:
Balance(Year n) = (Balance(Year n-1) + Annual Investment) × (1 + r)
Where r is the annual PPF interest rate (e.g., 0.071 for 7.1%). Interest is calculated on the lowest balance between the 5th and last day of each month — meaning deposits made by the 5th earn interest for the full month.
Worked Example — Step by Step
₹1,50,000 per year at 7.1% for 15 years:
PPF vs Other Saving Instruments — Tax Comparison
PPF's EEE (Exempt-Exempt-Exempt) tax status makes it superior to most fixed-income investments from an after-tax return perspective. Here's how it compares for a person in the 30% tax bracket:
| Instrument | Pre-Tax Return | Tax on Interest | After-Tax Return (30% bracket) | 80C Benefit |
|---|---|---|---|---|
| PPF | 7.1% | Nil (EEE) | 7.1% | Yes |
| Bank FD (5-yr tax saving) | 7.0% | Slab rate | ~4.9% | Yes |
| NSC | 7.7% | Slab rate | ~5.4% | Yes |
| Regular Bank FD | 7.0% | Slab rate | ~4.9% | No |
| Senior Citizen Savings Scheme | 8.2% | Slab rate | ~5.7% | Yes |
| Sukanya Samriddhi (girls) | 8.2% | Nil (EEE) | 8.2% | Yes |
For someone in the 30% tax bracket, a 7.1% tax-free PPF return is equivalent to a 10.14% pre-tax return on a taxable FD. This is a significant advantage. The only instruments beating PPF's after-tax return are equity mutual funds with long-term returns of 10–14% CAGR (though these carry market risk).
PPF Investment Strategy — Maximising Returns
The timing of your annual PPF contribution significantly impacts your returns:
- Invest by April 5 every year — PPF interest is calculated on the lowest balance between the 5th and last of each month. Depositing by April 5 ensures your money earns interest for April, giving you an extra month's interest compared to investing in May or later.
- Invest lump sum, not in instalments — A lump sum on April 5 earns more total interest than 12 monthly instalments, because early months' contributions compound for longer.
- Extend after 15 years — With contributions, you continue the 80C benefit and compounding. Without contributions (passive extension), the balance still earns 7.1% tax-free, making it a superior alternative to a savings account for your emergency fund.
- Open a PPF for your minor child — Parents can open PPF accounts for their minor children. The child's account matures when they are 30 (if opened at age 0), building substantial corpus by adulthood.
Frequently Asked Questions
What is the current PPF interest rate?
The current PPF interest rate is 7.1% per annum (as of Q1 FY 2025-26). The rate is set by the Government of India and announced quarterly, though it has remained unchanged at 7.1% since April 2020. Interest is compounded annually and credited to the account on 31 March each year. Always verify the current rate at the RBI website or India Post website before planning your investment.
What is the PPF annual investment limit?
The minimum annual contribution is ₹500 and the maximum is ₹1,50,000 per financial year (April to March). You can invest in a lump sum or up to 12 instalments. Deposits made before the 5th of any month earn interest for that month. Deposits made after the 5th earn interest from the following month. For maximum benefit, invest the full ₹1.5 lakh as a lump sum at the start of the financial year (April 1).
Can I withdraw money from PPF before 15 years?
PPF has a 15-year lock-in period. However, partial withdrawals are allowed from the 7th financial year onwards — up to 50% of the balance at the end of the 4th year or the immediately preceding year, whichever is lower. Premature closure is allowed after 5 years only in specific cases: treatment of life-threatening illness, higher education of the account holder or dependent children, or change in residency status. Premature closure attracts a 1% reduction in the applicable interest rate.
What does EEE (Exempt-Exempt-Exempt) mean for PPF?
PPF has EEE tax status, meaning it is exempt at all three stages of the investment lifecycle: (1) Exempt at investment — contributions up to ₹1.5 lakh qualify for deduction under Section 80C, reducing taxable income; (2) Exempt during accumulation — interest earned each year is completely tax-free, not added to income; (3) Exempt at maturity — the full maturity amount (principal + all accumulated interest) is tax-free. This makes PPF one of very few instruments in India offering full triple tax exemption, superior to FDs and most mutual funds.
Can I extend PPF after the 15-year maturity?
Yes. After the initial 15-year term, you can extend your PPF account in blocks of 5 years, with or without fresh contributions. If you extend with contributions, you continue to earn interest on contributions and get the 80C benefit. If you extend without contributions (passive extension), the balance continues to earn interest tax-free and you can make one withdrawal per year. There is no limit to how many times you can extend. This flexibility makes PPF a powerful long-term wealth accumulation tool.
Related Calculators
- EPF Calculator — Employee Provident Fund with employer contribution
- FD Calculator — Fixed Deposit maturity with compounding comparison
- SIP Calculator — Mutual fund SIP returns vs PPF comparison
- Section 80C Calculator — Maximise your ₹1.5 lakh 80C deduction
- Sukanya Samriddhi Calculator — SSY maturity value for girl child