PPF Calculator
Calculate the maturity value of your Public Provident Fund (PPF) investment with tax benefits under Section 80C.
Current PPF rate: 7.1% p.a. (Q4 FY 2024-25)
Tax Benefit: Your yearly investment of ₹1.50 L qualifies for Section 80C deduction. You can save up to ₹46,800 in taxes (at 30% slab).
After 15 years
What is a PPF Calculator?
A PPF calculator is a free online tool that estimates the maturity amount and interest earned on your Public Provident Fund investment. By entering your annual contribution and tenure, the calculator shows you how the EEE (Exempt-Exempt-Exempt) tax-free corpus grows over the 15-year lock-in period.
PPF is one of India's most popular long-term savings schemes — backed by the Government of India, offering 7.1% tax-free returns (Q1 FY26), and qualifying for the full ₹1.5 lakh deduction under Section 80C. It's the safest way to build a tax-free corpus for retirement, child's education, or any 15-year goal.
PPF at a Glance
15 years minimum
₹500 to ₹1.5 lakh/year
7.1% p.a. (reviewed quarterly)
EEE (fully tax-free)
PPF Maturity Formula
PPF interest is compounded annually, applied to the lowest balance between the 5th of each month and the end of the month. For yearly lump-sum contributions, the maturity calculation is:
- M = maturity amount
- P = annual contribution
- r = annual interest rate (as decimal, 0.071 for 7.1%)
- n = tenure in years (15 minimum)
For a ₹1.5 lakh annual contribution at 7.1% for 15 years, the maturity comes to roughly ₹40.68 lakh — of which ₹22.5 lakh is your investment and ₹18.18 lakh is tax-free interest. Extend by another 15 years and the corpus crosses ₹1.5 crore — entirely tax-free.
PPF Returns: How Much Will You Get?
The table shows what different annual contributions grow into at 7.1% over the standard 15-year tenure:
| Annual Contribution | Total Invested (15 yr) | Maturity Amount | Tax-free Interest |
|---|---|---|---|
| ₹12,500/year | ₹1,87,500 | ₹3,39,000 | ₹1,51,500 |
| ₹50,000/year | ₹7,50,000 | ₹13,56,000 | ₹6,06,000 |
| ₹1,00,000/year | ₹15,00,000 | ₹27,12,000 | ₹12,12,000 |
| ₹1,50,000/year (max) | ₹22,50,000 | ₹40,68,000 | ₹18,18,000 |
Investing the full ₹1.5 lakh limit gets you ₹40.68 lakh tax-free in 15 years. Extending into another 5-year block at the same contribution lifts that to ₹66 lakh by year 20, and ₹1.03 crore by year 25 — all tax-free.
PPF vs ELSS vs FD: Which is Better for 80C?
All three qualify for Section 80C deduction. Here's how they stack up:
| Feature | PPF | ELSS | 5-yr Tax-Saver FD |
|---|---|---|---|
| Lock-in | 15 years | 3 years | 5 years |
| Returns | 7.1% (fixed) | 12-15% (market) | 6.5-7% |
| Risk | Sovereign zero risk | Market risk | DICGC ₹5L cover |
| Tax on returns | Fully tax-free (EEE) | 12.5% LTCG over ₹1.25L | Slab rate |
| Liquidity | Loan year 3-6, partial withdrawal year 7 | After 3-yr lock-in | After 5 years |
| Best for | Risk-averse, retirement | Wealth creation | Predictable corpus |
Compare with our SIP Calculator for ELSS scenarios and FD Calculator for fixed deposits.
Tax Benefits of PPF (EEE)
PPF's biggest advantage is its EEE (Exempt-Exempt-Exempt) tax status — one of only two instruments in India to enjoy this:
- Exempt at investment: Up to ₹1.5 lakh contribution qualifies for Section 80C deduction (within overall 80C limit).
- Exempt at accrual: Annual interest credited to your account is fully tax-free, year after year.
- Exempt at withdrawal: Maturity amount and partial withdrawals are 100% tax-free.
Important: PPF tax benefits apply only under the Old Tax Regime. The New Tax Regime (default from FY26-27) doesn't allow Section 80C deductions — but PPF interest and maturity remain tax-free under either regime. Use our Income Tax Calculator to figure out which regime works for you.
PPF Withdrawal Rules
PPF has a 15-year lock-in, but it isn't completely illiquid:
- Partial withdrawal (Year 7+): You can withdraw up to 50% of the balance at the end of the 4th preceding year, once per financial year.
- Loan against PPF (Year 3-6): Borrow up to 25% of the balance at the end of the 2nd preceding year. Interest is 1% above the PPF rate.
- Premature closure (Year 5+): Allowed only for genuine medical or higher-education emergencies. The interest rate is reduced by 1%.
- Maturity (Year 15): Withdraw entire amount tax-free, OR extend in 5-year blocks (with or without further contributions).
Pro Tips for Maximizing PPF Returns
- Deposit before 5th of the month: PPF interest is calculated on the lowest balance between 5th and end of month. Depositing on the 1st-5th earns you interest for that month; later deposits don't.
- Lump sum on April 5th: If you're depositing the full ₹1.5 lakh, do it before April 5th of the financial year to maximize annual interest accrual.
- Open a child's PPF account: Parents/guardians can open one PPF account per child. The combined family limit is still ₹1.5 lakh, but you get longer compounding tenure.
- Extend after maturity: Even small extensions add up — ₹40 lakh at year 15 grows to ₹66 lakh by year 20 with the same contributions, just by letting compounding continue.
- Use the loan facility instead of breaking PPF: A 1% premium loan beats a 1% interest-rate cut from premature closure.
Frequently Asked Questions
What is the current PPF interest rate?
PPF interest rate for Q1 FY26 (April-June 2026) is 7.1% per annum. The rate is reviewed by the Ministry of Finance every quarter and historically ranges between 7.1% and 8.0% depending on the broader interest rate cycle.
What is the minimum and maximum PPF contribution?
Minimum: ₹500 per financial year. Maximum: ₹1.5 lakh per financial year (combined across all your PPF accounts). The same ₹1.5 lakh ceiling is shared with other 80C investments like ELSS, EPF, and life insurance premiums.
Can I have multiple PPF accounts?
No — you can only have one PPF account in your own name. However, you can open additional accounts as a guardian for minor children. The ₹1.5 lakh annual limit applies across all accounts combined.
Where can I open a PPF account?
You can open a PPF account at any post office, SBI branch, or other authorized public sector and private banks (HDFC, ICICI, Axis, Kotak, etc.). Many banks also allow online PPF account opening through their net banking platforms.
Is PPF interest taxable?
No. PPF enjoys EEE (Exempt-Exempt-Exempt) tax status — investment qualifies for Section 80C deduction, annual interest is tax-free, and maturity amount is tax-free. It's one of the most tax-efficient savings instruments in India.
Can I withdraw PPF before 15 years?
Partial withdrawal is allowed from the 7th financial year onwards (up to 50% of balance from 4 years prior). Premature closure is allowed from the 5th year, but only for genuine medical or higher-education emergencies, and the applicable interest rate is reduced by 1%.
What happens if I miss a PPF deposit in a year?
If you don't deposit at least ₹500 in a year, your PPF account becomes inactive. To reactivate, you pay a ₹50 penalty per missed year plus the minimum ₹500 contribution for each missed year. The account doesn't earn interest while inactive.
What is the PPF extension option?
After the initial 15-year tenure, you can extend the account in blocks of 5 years — either with continuing contributions (full PPF benefits continue) or without contributions (existing balance keeps earning interest). Extension can be done unlimited times.
Is PPF a good investment in 2026?
For risk-averse investors and those wanting tax-free retirement corpus, yes. However, for investors with a 15+ year horizon and tolerance for market volatility, ELSS funds historically deliver 12-15% returns vs PPF's 7.1% — making ELSS more wealth-creating despite the tax. Most balanced portfolios include both.
Can NRIs open a PPF account?
No, NRIs cannot open new PPF accounts. However, if you opened a PPF account as a resident and later became NRI, you can continue contributing until the original 15-year maturity. After maturity, NRIs cannot extend the account.
Pro Tip: Invest before 5th of every month to earn interest for that month. PPF interest is calculated on the lowest balance between 5th and end of month.