PPF Calculator India
Calculate your Public Provident Fund (PPF) maturity value, tax-free interest earnings, and 15-year wealth schedule.
Investment Parameters
Interest is notified quarterly by the Ministry of Finance (currently 7.10% p.a.).
100% Tax-Free Sovereign Guarantee over 15 financial years
PPF Investment Summary
- Statutory annual deposit limits: Minimum ₹500 to Maximum ₹1,50,000 per financial year
- Current sovereign interest rate is 7.10% p.a. (notified quarterly by Ministry of Finance; subject to periodic review)
- Interest is compounded annually on March 31st based on the minimum balance between the 5th and end of each month
- EEE tax status: Deposits qualify for Section 80C (under Old Regime), interest is fully tax-free, and maturity is 100% tax-free
- Original tenure is 15 complete financial years, extendable in blocks of 5 years with or without further contributions
Frequently Asked Questions
What is PPF and who can open a PPF account?
PPF (Public Provident Fund) is a government-backed long-term savings scheme with EEE (Exempt-Exempt-Exempt) tax status. Any Indian resident can open a PPF account at post offices or authorized banks. NRIs cannot open new PPF accounts. Only one PPF account per person is allowed. Parents can open accounts for minor children.
What is the current PPF interest rate for FY 2025-26?
The PPF interest rate is revised quarterly by the government. As of January 2026, the rate is around 7.1% per annum, compounded annually. This rate is typically reviewed every quarter (April, July, October, January) and adjusted based on government securities yields. Check latest notifications for current rate.
How much can I invest in PPF annually?
Minimum investment: ₹500 per year (can be in lump sum or installments). Maximum investment: ₹1,50,000 per financial year. Investments qualify for tax deduction under Section 80C. You can make deposits in one lump sum or up to 12 installments per year. Investment before 5th of month earns interest for full month.
When can I withdraw money from my PPF account?
PPF has a 15-year lock-in period from end of financial year of account opening. Partial withdrawals allowed from 7th year (up to 50% of balance at end of 4th year). Premature closure allowed after 5 years only for specific reasons (medical emergency, higher education) with interest penalty. At maturity, you can extend in 5-year blocks.
Can I take a loan against my PPF account?
Yes, you can take a loan from 3rd to 6th year of account opening. Maximum loan amount: 25% of balance at end of 2nd preceding year. Interest charged: 1% above PPF rate (currently ~8.1%). Loan must be repaid within 36 months. After 6th year, loan facility is not available, but partial withdrawals are permitted.
Is PPF better than FD or NPS for retirement?
PPF advantages: Tax-free returns (EEE status), government guarantee, decent returns (~7.1%), flexibility in investment amount. FD: More liquid but taxable interest. NPS: Higher potential returns but 40% lock-in with annuity. PPF is best for risk-free, long-term tax-free savings. Ideal to have a mix: PPF for safety, NPS for growth, FD for liquidity.
How to Use This Calculator
- 1
Enter your annual PPF investment amount (minimum ₹500, maximum ₹1,50,000 per financial year).
- 2
Set your expected PPF interest rate. Current rate is ~7.1% p.a. (as of FY 2025-26), compounded annually.
- 3
Enter investment tenure in years. PPF has a minimum 15-year lock-in period. You can extend in 5-year blocks thereafter.
- 4
View maturity amount, total interest earned, and year-by-year account balance growth in the detailed breakdown.
Key Terms & Definitions
- PPF (Public Provident Fund)
- Government-backed long-term savings scheme with 15-year maturity, offering sovereign-backed fixed returns (currently 7.1% p.a. reviewed quarterly) and complete tax exemption (EEE status).
- EEE Tax Status
- Exempt-Exempt-Exempt: Investment qualifies for 80C deduction, interest earned is tax-free, and maturity amount is tax-free. Best tax treatment possible.
- Lock-in Period
- Mandatory 15-year period from end of financial year of account opening. Premature withdrawal restricted; partial withdrawal from 7th year.
- Compound Interest
- Interest calculated annually on principal plus accumulated interest. PPF compounds yearly, significantly increasing returns over long term.
- Section 80C Deduction
- Tax deduction up to ₹1.5 lakh per year on PPF investments. Reduces taxable income. Only available in old tax regime.
- Maturity Extension
- After 15 years, you can extend PPF in blocks of 5 years with or without further contributions, continuing to earn tax-free interest.
Formulas & Calculations
PPF Maturity Amount (Annual Investment)
Example: ₹1,50,000 annual investment at 7.1% for 15 years = ₹1,50,000 × 24.26 = ₹36.4 lakhs (₹22.5L invested + ₹13.9L interest).
PPF Interest Calculation
Interest is calculated on the lowest balance from 5th to end of each month, compounded annually. Invest before 5th to earn interest for full month.
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