PPF Calculator
Estimate the maturity value of your Public Provident Fund.
Illustrative — verify the current PPF rate. Assumes one deposit each year.
What Is a PPF Calculator?
The Public Provident Fund (PPF) is one of India's most popular long-term savings schemes, backed by the Government of India. A PPF Calculator helps you estimate the maturity amount you will receive after the 15-year lock-in period, based on your yearly contribution and the prevailing interest rate.
PPF enjoys the rare EEE (Exempt-Exempt-Exempt) tax status: your contributions qualify for deduction under Section 80C, the interest earned is tax-free, and the maturity amount is also fully exempt from tax. You can invest between ₹500 and ₹1.5 lakh per financial year, and interest is compounded annually.
PPF Maturity Formula and How It Works
PPF interest is compounded once a year. Each yearly deposit earns compound interest for the number of years it remains invested until maturity. The future value of a series of equal annual deposits is calculated using:
M = P × [((1 + i)n − 1) ÷ i] × (1 + i)
Where:
- M = maturity amount
- P = yearly deposit
- i = annual interest rate (as a decimal)
- n = number of years (15)
The final (1 + i) term reflects that deposits made early in the year earn a full year of interest. Each installment is compounded from the year it is deposited until the end of the 15-year tenure, so the earliest deposits grow the most.
Worked Example
Suppose you deposit ₹1,50,000 every year for 15 years at an assumed interest rate of 7.1% per annum (the rate applicable at the time of writing — always verify the current rate).
Total deposited over 15 years = ₹1,50,000 × 15 = ₹22,50,000.
Applying the formula with P = 1,50,000, i = 0.071 and n = 15, the maturity value works out to approximately ₹40,68,209. That means you earn around ₹18,18,209 in tax-free interest — purely from the power of annual compounding over 15 years.
If you instead deposited ₹50,000 a year at the same rate, your maturity would be roughly ₹13.56 lakh on a total investment of ₹7.5 lakh. Our PPF Calculator does this math instantly — just enter your yearly contribution, the interest rate and the tenure.
Tips to Maximise Your PPF Returns
To get the most out of your PPF account, keep these points in mind:
- Deposit before the 5th of the month: PPF interest is calculated on the lowest balance between the 5th and the end of each month, so depositing early earns you extra interest.
- Invest the full ₹1.5 lakh early in the year: A lump-sum deposit in April earns interest for the whole financial year.
- Extend in blocks of 5 years: After 15 years you can extend the account in 5-year blocks, with or without further contributions, to keep compounding tax-free.
- Use it for Section 80C: PPF contributions count towards your ₹1.5 lakh 80C limit, making it both a savings and a tax-saving tool.
Frequently Asked Questions
The PPF interest rate is set by the Government of India and revised every quarter. At the time of writing it is 7.1% per annum, but this can change. Always verify the latest notified rate on the official India Post or your bank's website before relying on any calculation.
No. PPF falls under the EEE (Exempt-Exempt-Exempt) category. Your contributions are deductible under Section 80C, the interest earned each year is fully tax-free, and the maturity amount is also exempt from income tax.
PPF has a lock-in period of 15 years from the end of the financial year in which the account was opened. After maturity, you can withdraw the full amount or extend the account in blocks of 5 years.
You must deposit at least ₹500 per financial year to keep the account active, and you can invest a maximum of ₹1,50,000 per financial year. Deposits can be made as a lump sum or in instalments.
Partial withdrawals are allowed from the 7th financial year onwards, subject to limits. A loan facility is also available between the 3rd and 6th years. Premature closure is permitted only in specific cases such as serious illness or higher education, usually with an interest penalty.
Interest is calculated monthly on the lowest balance between the 5th and the last day of the month, but it is credited and compounded once a year at the end of the financial year. Depositing before the 5th of each month helps you earn the maximum interest.