PPF Calculator
| Year | Opening (₹) | Deposit (₹) | Interest (₹) | Closing (₹) |
What This Tool Does
This calculator estimates how much your Public Provident Fund account will be worth at maturity. Enter your yearly contribution amount, the applicable interest rate, and your investment tenure, and it returns the total corpus, principal invested, and interest earned. It helps you plan how much to set aside annually to reach a target retirement or savings goal through PPF.
You can also use this Pregnancy Calculator.
How It’s Calculated
PPF interest is compounded annually. The government sets the interest rate each quarter, and interest is calculated on the lowest balance between the 5th and the last day of each month — making it important to deposit before the 5th of April each financial year to earn interest for that full month.
The standard formula used for PPF maturity calculation is:
A = P × [((1 + r)^n − 1) ÷ r] × (1 + r)
Where:
- A = maturity amount
- P = annual contribution
- r = annual interest rate (as a decimal)
- n = number of years
Worked Example:
- Annual contribution: ₹1,20,000
- Interest rate: 7.1% per annum
- Tenure: 15 years
- Total principal contributed: ₹18,00,000
- Total interest earned: ₹14,54,567
- Maturity value: ₹32,54,567
The interest earned — ₹14,54,567 — comes entirely from compounding over 15 years. The longer the tenure, the more dramatically compounding works in your favour.
Edge Cases and Special Rules
Deposit timing matters: PPF interest is calculated on the balance between the 5th and last day of each month. Depositing after the 5th means that month’s balance does not earn interest. Investing a lump sum before April 5th each year maximises annual interest.
Rate changes mid-tenure: The government revises the PPF interest rate quarterly. This calculator assumes a constant rate throughout. If the rate changes, recalculate for the remaining period using the new rate to get an updated projection.
Contribution limits: The minimum annual deposit is ₹500 and the maximum is ₹1.50 lakh per financial year per PAN. Contributions below ₹500 in any year result in the account being classified as inactive.
15-year lock-in: PPF has a mandatory 15-year tenure from the end of the financial year in which the account is opened. Partial withdrawals are allowed from year 7 onwards, subject to conditions. Premature full closure is permitted only in specific circumstances such as serious illness or higher education.
Extension after maturity: Once the 15-year period ends, the account can be extended in blocks of 5 years — with or without further contributions. Extensions with contributions continue earning interest and compounding. The calculator covers the base 15-year period; adjust inputs manually for extended periods.
Inflation not accounted for: The maturity value shown is in nominal terms. Real purchasing power at maturity will be lower depending on inflation over the investment period.
Tax Benefits of PPF
PPF is classified as an EEE — Exempt, Exempt, Exempt — investment under the old tax regime:
- Contribution: Deposits up to ₹1.50 lakh per year qualify for deduction under Section 80C (applicable under the old tax regime only)
- Interest: Interest earned every year is fully tax-free
- Withdrawal: The entire maturity amount is tax-free in the hands of the investor
This triple exemption makes PPF one of the most tax-efficient long-term savings instruments available in India. The effective post-tax return is significantly higher than the stated interest rate for investors in higher tax brackets.
Who Uses This
- Salaried employees using PPF as a core component of their Section 80C tax-saving plan
- Self-employed individuals who do not have EPF coverage and use PPF as their primary long-term savings vehicle
- Parents opening PPF accounts in a minor child’s name to build an education or marriage corpus
- Conservative investors seeking guaranteed, government-backed returns without market risk
- Anyone comparing PPF with FD, NPS, or SIP who wants to see projected PPF returns alongside other options.
PPF vs. FD vs. SIP
PPF, FDs, and SIPs serve different purposes and suit different investor profiles.
A PPF offers government-guaranteed returns, full tax exemption at all three stages, and a 15-year compounding structure — but locks your money in with limited withdrawal flexibility. An FD offers fixed returns with more flexibility on tenure and premature withdrawal, but interest is fully taxable. A SIP in a mutual fund has no guaranteed return and carries market risk, but historically delivers higher returns over long periods and has no contribution ceiling.
PPF is best suited to investors who prioritise capital safety, tax efficiency, and disciplined long-term saving over liquidity or higher return potential.
FAQ
Who sets the PPF interest rate?
The Government of India sets the PPF interest rate, reviewed and announced quarterly. The rate applies uniformly across all PPF accounts — whether held at SBI, Post Office, HDFC, ICICI, or any other authorised bank.
Can I deposit monthly into PPF instead of yearly?
Yes. PPF allows up to 12 deposits per financial year. Monthly deposits are common — just ensure each deposit is made before the 5th of the month to earn interest for that month. The calculator uses annual contribution as the input; multiply your monthly amount by 12 to find the annual equivalent.
What happens if I miss a year’s deposit?
Missing the minimum ₹500 deposit in any financial year makes the account inactive. It can be reactivated by paying ₹500 for each missed year plus a penalty of ₹50 per missed year.
Can I open a PPF account for my child?
Yes. Parents or legal guardians can open a PPF account in a minor’s name. The combined contribution across the parent’s own account and the minor’s account cannot exceed ₹1.50 lakh per year.
Is PPF available under the new tax regime?
The Section 80C deduction on PPF contributions applies only under the old tax regime. Investors who opt for the new tax regime cannot claim the deduction, though the interest and maturity amount remain tax-free regardless of the regime chosen.
A Note on Results
All figures this calculator produces are projections based on a fixed interest rate and the contribution amount you enter. Actual maturity values will vary if the government revises the PPF rate during your investment period. Use these results for planning purposes and review your projections periodically as rates change.