๐ฎ๐ณ PPF Calculator
7.1% tax-free compounding, 15-year horizon.
Projected PPF maturity value
Estimates for planning only, not financial advice.
The Public Provident Fund pays 7.1 percent, compounded yearly, on deposits up to โน1.5 lakh a year, and every rupee of interest is tax-free under the EEE regime. Deposit the full โน1.5 lakh each April for 15 years and the maturity value is about โน37,98,515: โน22.5 lakh of deposits and โน15.5 lakh of tax-free interest. Extend in 5-year blocks and the compounding really takes off.
How to Use This Calculator
Enter your yearly deposit (within the โน500 to โน1.5 lakh limits), the current interest rate, and the duration. The calculator projects the maturity value with yearly compounding and splits deposits from interest.
Enter the yearly deposit. Deposit in early April to earn interest for the full year.
Set the rate (7.1% since 2020, revised quarterly) and duration: 15 years minimum, extendable.
Read the maturity value. For monthly-income needs instead, see our POMIS calculator.
The PPF Formula
PPF compounds yearly at the declared rate, currently 7.1 percent. The EEE tax status means deposits earn 80C deductions, interest accrues tax-free, and maturity is tax-free: a triple benefit no market instrument matches for guaranteed returns. Partial withdrawals are allowed from year 7, loans from year 3.
Worked Example
โน1.5 lakh yearly, 7.1 percent, 15 years. Maturity = 150,000 x ((1.071^15 - 1) / 0.071) = 150,000 x 25.3234 = โน37,98,515. Deposited: โน22,50,000. Interest: โน15,48,515, 41 percent of the total. Extend 5 more years (20 total) with continued deposits and the value crosses โน66 lakh, all tax-free.
Reading Your Result
The 7.1 percent is modest next to equity returns, but it is guaranteed and tax-free, which changes the comparison: a taxable 9 percent bond nets a 30 percent-bracket investor only 6.3 percent. PPF is the safe foundation; equities are the growth engine. Hold both.
My rule: deposit the full amount in the first week of April, not spread through the year. PPF interest for a month counts the lowest balance between the 5th and month-end, so money deposited on April 6 earns for April, but money deposited monthly loses months of interest. That one habit is worth real money over 15 years. And treat extensions as the default: the 5-year blocks after maturity are when the corpus is largest and compounding works hardest. For retirement corpus math, our NPS calculator models the market-linked alternative.
The April deposit habit is the highest-return behavior in PPF investing. Because interest counts the lowest balance between the 5th and month-end, a full 1.5 lakh deposited on April 5 earns twelve months of interest while monthly installments bleed months away. Over 15 years the timing difference compounds into real money, all for the effort of one early transfer.
Estimates for planning only, not financial advice.
Frequently Asked Questions
What is the PPF interest rate in 2026?
7.1% per annum, compounded yearly. The rate has been unchanged since April 2020 and is revised quarterly by the government. Always confirm the current rate before planning. The Finance Ministry announces small-savings rates quarterly: watch the March, June, September, December cycle.
How much will โน1.5 lakh yearly grow in PPF over 15 years?
About โน37,98,515 at 7.1%: โน22.5 lakh of deposits plus โน15.48 lakh of tax-free interest. Extending to 20 years with continued deposits pushes it past โน66 lakh. A 1.5 lakh April deposit versus monthly SIP-style deposits differs by thousands in interest yearly.
Is PPF tax-free?
Yes, EEE status: deposits qualify for 80C deduction (up to โน1.5 lakh), interest is tax-free, and maturity proceeds are tax-free. One of India's most tax-efficient guaranteed instruments. New regime taxpayers skip 80C: PPF's tax-free growth still justifies it for many.
What is the minimum and maximum PPF deposit?
โน500 minimum per year (account goes inactive below it), โน1.5 lakh maximum per financial year across all your PPF accounts. Deposits can be lump sum or up to 12 installments. Twelve installments maximum per year: monthly deposits are allowed, weekly are not.
Can I withdraw from PPF early?
Partial withdrawals are allowed from the 7th year (one per year, capped). Loans are available from year 3 to 6. Premature closure is permitted only in specific hardship cases with interest penalty. Loans charge 1% above the PPF rate: cheaper than personal loans, repaid within 36 months.
What happens after 15 years?
Three choices: withdraw the full amount tax-free, extend in 5-year blocks with continued deposits, or extend in 5-year blocks without fresh deposits (balance keeps earning interest). File the extension form for the same account rather than opening a fresh one: continuity preserves the compounding chain and avoids paperwork headaches.
Should I deposit monthly or yearly in PPF?
Yearly, in early April. Interest counts the lowest balance between the 5th and month-end, so a full April deposit earns 12 months of interest while monthly deposits lose months. One early deposit beats twelve late ones. The 5th-of-month rule is the quirk to memorize: deposits after the 5th lose that month's interest.
Is PPF better than NPS?
Different roles: PPF gives guaranteed 7.1% tax-free with full withdrawal at 15 years; NPS offers higher expected market-linked returns with equity exposure but mandatory 40% annuitization. Most planners hold both. EPF contributors in the new regime often pair PPF for the tax-free debt portion.
Can I have more than one PPF account?
Only one PPF account per person (plus one for a minor child as guardian). A second account in your own name is irregular and the excess deposits earn no interest. Minor accounts count separately: parents can run one PPF each plus one per child.
Is PPF interest affected by market crashes?
No. PPF is a government-backed small savings scheme with a declared rate; your balance never falls with markets. The trade-off is the rate can be revised down at quarterly reviews. Rate cuts apply prospectively: existing balances keep earning at whatever rate is declared.