PPF Calculator
Estimate your Public Provident Fund maturity amount with tax-free annual compounding.
Total Deposited
₹22.5 L
Interest Earned
₹18.2 L
Maturity Amount
₹40.7 L
Breakdown
PPF Calculator – Public Provident Fund Returns
What is PPF?
The Public Provident Fund (PPF) is a government-backed long-term savings scheme offering guaranteed returns with tax benefits. With a 15-year lock-in, annual contributions of ₹500 to ₹1.5 lakh, and EEE (Exempt-Exempt-Exempt) tax status, PPF is one of India's most tax-efficient investment options.
PPF interest is compounded annually and credited at the end of each financial year. The government revises the interest rate quarterly — currently at 7.1% per annum.
How Does the PPF Calculator Work?
The PPF calculator compounds your annual contributions at the prevailing interest rate over 15 years. Each year's deposit earns interest for the remaining years. The formula: Maturity = Sum of [P_i × (1 + r)^(15 − i + 1)] for each year i, where P_i is the deposit in year i and r is the annual interest rate.
For example, depositing ₹1,50,000 every year at 7.1% for 15 years builds a corpus of approximately ₹40,68,209 — your total investment of ₹22,50,000 nearly doubles through compounding.
PPF Tax Benefits (EEE Status)
PPF enjoys the coveted EEE (Exempt-Exempt-Exempt) tax status: deposits qualify for Section 80C deduction up to ₹1.5 lakh, interest earned is tax-free, and the maturity amount is entirely tax-free. This makes PPF one of the few genuinely tax-free investments in India.
For someone in the 30% tax bracket, the effective post-tax return of PPF at 7.1% is equivalent to approximately 10.14% from a taxable investment — making it extremely attractive.
PPF Withdrawal and Extension Rules
Partial withdrawal is allowed from the 7th year onward, up to 50% of the balance at the end of the 4th preceding year or the 1st preceding year, whichever is lower. After 15 years, you can withdraw the full amount or extend in blocks of 5 years with or without contributions.
You can also take a loan against PPF between the 3rd and 6th year, up to 25% of the balance at the end of the 2nd preceding year.
Frequently Asked Questions
No. An individual can have only one PPF account. Having multiple accounts is not allowed and may lead to the second account being closed without interest. You can, however, open accounts for minors through a guardian.
Deposits exceeding ₹1.5 lakh per year don't earn any interest and don't qualify for Section 80C deduction. The excess amount sits idle in your account. Always stay within the annual limit.
No. The government revises PPF interest rates quarterly based on government bond yields. The rate has ranged from 7.1% to 8.8% historically. For calculation purposes, we use the current rate, but actual returns may vary over the 15-year period.
Yes. Most major banks (SBI, HDFC, ICICI, Axis) and post offices allow online PPF account opening through net banking. You'll need Aadhaar, PAN, and a bank account. Online accounts offer the same interest rate and features as branch-opened accounts, with the convenience of digital contributions.
The minimum annual deposit is ₹500. You must deposit at least ₹500 per year to keep the account active. Missing a year's deposit makes the account dormant, which can be revived with a penalty of ₹50 per missed year plus the minimum deposit for each missed year.
Yes, after 15 years, you can extend in blocks of 5 years. You can choose to continue contributing (with contributions) or just let the balance earn interest (without contributions). Each extension block can be continued indefinitely. This is excellent for long-term tax-free compounding.
For 15+ year goals, PPF is superior: EEE tax status makes effective returns much higher, interest is government-guaranteed, and it offers partial withdrawal flexibility. FDs are better for short-term (1–5 years) needs with guaranteed returns and no lock-in. For a balanced approach, use both — FDs for short-term and PPF for long-term.
NRIs cannot open new PPF accounts. However, if you opened a PPF account while you were a resident Indian and later became an NRI, you can continue the account until maturity. You cannot extend it beyond 15 years as an NRI. Contributions must come from an NRO account.
PPF is a voluntary savings scheme open to all with 15-year lock-in and 7.1% rate. VPF (Voluntary Provident Fund) is an extension of EPF available only to salaried employees, offering the same 8.25% rate as EPF. VPF has no separate lock-in but follows EPF withdrawal rules. Both offer Section 80C deduction and tax-free interest (within limits).