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PPF Calculator – Plan Your 15-Year Tax-Free Wealth

The Public Provident Fund (PPF) is one of the most popular long-term saving schemes in India, offering safety, attractive interest rates, and excellent tax benefits. Backed by the Government of India, it provides an EEE (Exempt-Exempt-Exempt) tax status. Our PPF calculator helps you estimate your maturity amount, total interest earned, and the yearly growth of your investment over the lock-in period and beyond.

How to Use the PPF Calculator

  1. Enter your yearly deposit amount. This can be between ₹500 and ₹1,50,000 per financial year.
  2. Input the current PPF interest rate. The default is set to the current government rate (e.g., 7.1%).
  3. Select the tenure of your investment. The minimum lock-in is 15 years, but you can extend it in blocks of 5 years.
  4. The calculator will instantly display your total deposited amount, interest earned, and the final maturity amount.

PPF Formula Explained

The PPF interest is compounded annually. The formula used is FV = P × [((1 + r)^n - 1) / r] × (1 + r), where FV is the Maturity Amount, P is the Annual Deposit, r is the rate of interest (in decimal, so 7.1% becomes 0.071), and n is the number of years. The extra (1 + r) accounts for deposits made at the beginning of the year.

Maximum Deposit Example

Annual Deposit: ₹1,50,000 | Interest Rate: 7.1% | Tenure: 15 Years

r = 0.071, n = 15. Maturity = 150000 × [((1 + 0.071)^15 - 1) / 0.071] × 1.071

Total Deposited: ₹22,50,000 | Total Interest: ₹18,18,209 | Maturity Amount: ₹40,68,209

Moderate Savings Example

Annual Deposit: ₹50,000 | Interest Rate: 7.1% | Tenure: 15 Years

r = 0.071, n = 15. Maturity = 50000 × [((1 + 0.071)^15 - 1) / 0.071] × 1.071

Total Deposited: ₹7,50,000 | Total Interest: ₹6,06,070 | Maturity Amount: ₹13,56,070

Extended Tenure Example

Annual Deposit: ₹1,00,000 | Interest Rate: 7.1% | Tenure: 25 Years

r = 0.071, n = 25. The account is extended twice by 5-year blocks.

Total Deposited: ₹25,00,000 | Total Interest: ₹47,53,108 | Maturity Amount: ₹72,53,108

Tips for PPF Investors

  • Deposit your amount before the 5th of the month to maximize interest, as interest is calculated on the minimum balance between the 5th and the end of the month.
  • Maximize your Section 80C benefits by investing the full limit of ₹1.5 Lakhs early in the financial year.
  • Extend your PPF account in blocks of 5 years after the initial 15-year maturity to benefit from massive compounding.
  • Even if you miss a year, you can revive your account by paying a nominal penalty of ₹50 along with the minimum deposit of ₹500.
  • PPF offers an EEE status, meaning your deposits, accrued interest, and maturity amount are completely tax-free.

Common Mistakes to Avoid

  • Depositing money after the 5th of the month and losing out on that month's interest.
  • Withdrawing funds prematurely unless absolutely necessary, thereby breaking the chain of compounding.
  • Forgetting to make the minimum ₹500 deposit in a financial year, causing the account to become inactive.
  • Opening multiple PPF accounts in your name, which is illegal under Indian postal rules.

Frequently Asked Questions

The PPF interest rate is determined by the Ministry of Finance, Government of India, and is reviewed every quarter. Currently, it is around 7.1% p.a.
Yes, PPF comes under the EEE (Exempt-Exempt-Exempt) category. The deposits made qualify for deduction under Section 80C, and both the interest earned and the maturity amount are completely exempt from income tax.
Partial withdrawals are allowed from the 7th financial year onwards. However, complete withdrawal is only possible on maturity (15 years) or under specific conditions like life-threatening diseases.
Yes, you can extend your PPF account indefinitely in blocks of 5 years. You have the option to extend it with or without making further deposits.
The minimum investment required to keep a PPF account active is ₹500 per financial year. The maximum amount you can deposit is ₹1,50,000 per financial year.
No, Non-Resident Indians (NRIs) cannot open a new PPF account. However, if a resident Indian opened an account and subsequently became an NRI, they can continue the account until maturity.
Interest is calculated monthly on the lowest balance between the close of the 5th day and the end of the month, but it is credited to the account annually at the end of the financial year.
Yes, you can take a loan against your PPF balance between the 3rd and 6th financial year of opening the account. The interest rate on the loan is 1% higher than the prevailing PPF interest rate.

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Last updated: 2026-09-30