Finance
Calculate your Public Provident Fund maturity value, total invested, and interest earned in seconds. Supports yearly or monthly deposits with adjustable interest rate.
What is a PPF Account?
PPF (Public Provident Fund) is a government-backed long-term savings scheme in India, with a 15-year lock-in period and interest that compounds annually. It offers one of the best tax treatments available to individuals: deposits qualify for Section 80C deduction, the interest earned is fully tax-free, and the maturity amount is also tax-free — a triple EEE benefit that few other instruments match.
How is PPF Maturity Calculated?
PPF interest is calculated on the lowest balance between the 5th of each month and end of month, so depositing early in the month helps maximize interest. The standard formula is: at the end of each year, the entire balance earns interest at the declared rate, and the new balance becomes the base for the next year. The maturity value is the final balance after 15 years of annual compounding on yearly deposits.
The ₹1.5 Lakh Annual Limit
You can deposit up to ₹1,50,000 in a PPF account per financial year — anything above this limit does not earn interest and won't count toward your maturity. Most investors who hit the cap do so in one lump sum at the start of the financial year (April), which also maximizes interest accrual since the deposit is in the account for the longest period.
PPF vs. Other Tax-Saving Options
PPF (7.1% tax-free) compares to ELSS mutual funds (potentially 12-15% but returns are LTCG-taxable above ₹1.25L/year), EPF (8.25% tax-free but locked until retirement), and FDs (7-8% but interest fully taxable). PPF's strength is the unbeatable tax treatment combined with government backing — ideal for the debt portion of a long-term portfolio.
After 15 Years: Extending PPF
Once your PPF matures at 15 years, you can withdraw the entire balance tax-free or extend the account in 5-year blocks. During extension, you can continue depositing (up to ₹1.5L/year) and the balance keeps compounding at the prevailing PPF rate. Many long-term investors extend multiple times, effectively turning a 15-year instrument into a 30 or 40-year retirement corpus.
Frequently Asked Questions
What is the current PPF interest rate?
The PPF interest rate is set by the Government of India every quarter and is currently 7.1% per annum (FY 2025-26), compounded annually. The rate is reviewed quarterly and notified by the Ministry of Finance. This calculator defaults to 7.1% but you can override it with the current announced rate.
What is the maximum PPF deposit per year?
The maximum deposit in a PPF account in any financial year is ₹1,50,000. Deposits above this limit do not earn interest and won't be reflected in the maturity amount. The minimum deposit required to keep the account active is ₹500 per year.
Is PPF interest really tax-free?
Yes — PPF enjoys the EEE (Exempt-Exempt-Exempt) tax status: deposits qualify for deduction under Section 80C up to ₹1.5 lakh, the interest earned is completely tax-free, and the maturity amount is also tax-free. This triple tax benefit is one of the main reasons PPF remains popular despite other options like equity mutual funds potentially offering higher returns.
Can I withdraw from PPF before 15 years?
Partial withdrawals are allowed from the 7th financial year onwards, up to 50% of the balance at the end of the 4th preceding year. Premature closure is also possible after 5 years under specific conditions like serious illness or higher education, though with a penalty of 1% reduced interest rate. After 15 years, you can extend the account in 5-year blocks.
Should I invest ₹1.5 lakh in PPF every year?
It depends on your goal horizon and other investments. PPF is best for long-term, risk-averse goals (10+ years) like retirement or a child's education, and the 80C tax benefit adds value if you're in the 30% tax bracket. For shorter horizons or higher growth, equity-linked options may be better, but the tax-free compounding in PPF is hard to beat for the safety portion of a portfolio.