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PPF Calculator

Project the maturity value of your Public Provident Fund at the current 7.1% government‑notified rate. Switch between yearly and monthly contributions, view the full year‑wise schedule, and see what your corpus is really worth after inflation.

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Everything about Public Provident Fund

What is PPF?

The Public Provident Fund is a sovereign-backed long-term savings scheme run by the Government of India and operated through post offices and authorised bank branches. It rolled out in 1968 with a single, simple objective — give salaried and self-employed households a disciplined way to build a tax-free retirement corpus without depending on equity markets.

Because deposits, interest accrual and final maturity are all tax-exempt, PPF sits in the rare EEE bucket — every stage is shielded from tax. That, combined with a sovereign guarantee on the principal and the interest, is why PPF is the backbone of most conservative wealth plans in India.

How a PPF account works

You open one PPF account per individual — minors can have one too, opened by a guardian. You can deposit anywhere between ₹500 and ₹1,50,000 in a financial year, in a lump sum or in up to twelve instalments. The account has a base tenure of fifteen years from the end of the financial year of opening, after which you can extend it indefinitely in blocks of five.

  • The notified interest rate is reviewed and announced by the Ministry of Finance every quarter; the current rate is 7.1% p.a.
  • Interest is calculated on the lowest balance between the 5th and the last day of every month, then credited to the account on 31st March each year.
  • From year 7 onwards you can take a partial withdrawal, and from year 4 you become eligible for a loan against the corpus.
  • On maturity you can withdraw the entire amount, extend with fresh contributions, or extend without further contributions.

How PPF interest is calculated

The official rule

Each month, the post office or bank looks at the balance in your PPF account between the 5th and the last day, picks the lowest figure, and applies one-twelfth of the annual rate. All twelve monthly amounts are added up and credited on 31st March. The practical takeaway: every rupee you deposit before the 5th of any month earns interest for that entire month.

What this calculator assumes

To keep the projection clear and comparable, this tool credits the deposit at the very start of the year and compounds annually at the prevailing rate of 7.1%. The formula applied each year is Closing = (Opening + Deposit) × (1 + r) — identical to how all leading Indian fintech calculators model PPF growth.

A quick worked example

Park the full ₹1,50,000 a year for the statutory fifteen-year lock-in at 7.1% and the account swells to roughly ₹40.68 lakh at maturity. Of that, only ₹22.50 lakh came from your pocket — the remaining ₹18.18 lakh is tax-free interest doing the heavy lifting.

Why investors keep PPF in their portfolio

  • Sovereign guarantee. Your principal and the credited interest are backed by the Government of India — there is no credit risk to worry about.
  • Triple tax shelter. Deposits qualify for an 80C deduction up to ₹1.5 lakh, the annual interest is exempt, and the maturity proceeds attract zero tax.
  • Forced discipline. The 15-year lock-in is intentionally rigid. For most investors, that inflexibility is exactly what protects the corpus from impulsive withdrawals.
  • Zero volatility. PPF does not mark-to-market. The rate may revise quarterly, but your balance never falls.
  • Liquidity windows. Loans from year 4 and partial withdrawals from year 7 give you measured access without breaking the account.

Tax benefits of PPF

PPF is one of the very few Indian products to enjoy the EEE classification — Exempt at investment, Exempt on accrual, and Exempt at maturity.

  • Section 80C deduction. Contributions of up to ₹1,50,000 in a year are deductible from taxable income under the old tax regime.
  • Tax-free interest. The annual 7.1% credit is not added to your taxable income.
  • Tax-free maturity. The final corpus, including 15+ years of compounded interest, lands in your hands without any TDS or capital gains tax.
  • Protection from attachment. The PPF balance is exempt from attachment by court orders towards any debt or liability — a unique creditor-protection benefit.

PPF vs FD vs SIP — how do they really compare?

ParameterPPFBank FDEquity SIP
BackingGovernment of IndiaBank · DICGC ₹5 LMarket-linked
Tenure15 yr + 5 yr blocks7 days – 10 yrOpen ended
Current yield7.10%5.5% – 7.5%10% – 14% long-term avg
RiskNoneVery lowHigh (short term)
Tax on returnsNilSlab rateLTCG 12.5% > ₹1.25 L
80C eligibleYes — up to ₹1.5 LOnly 5-yr tax-saverOnly ELSS variant
LiquidityLow — locked 15 yrHigh (with penalty)High

The honest read: PPF wins on safety, predictability and tax. FDs win on tenure flexibility. SIPs win on long-term wealth creation but carry meaningful drawdowns. A balanced household usually owns all three — PPF as the tax-free anchor, FDs as the liquidity bucket, and SIPs for inflation-beating growth.

Frequently asked questions

Who is eligible to open a PPF account?

Any resident Indian individual can open one PPF account in their own name and one each for any minor children as guardian. Hindu Undivided Families (HUFs) and Non-Resident Indians are not allowed to open new accounts.

Can I deposit more than ₹1.5 lakh in a year?

No. Any deposit above the annual ceiling is treated as an irregular subscription — it earns no interest and is not eligible for an 80C deduction. The bank or post office typically returns the excess to the source account.

When is the best date to make my yearly PPF deposit?

Before the 5th of April. Interest each month is computed on the lowest balance between the 5th and the last day, so an early-year lump sum captures the maximum 12 months of compounding. Investors spreading it across months should also deposit before the 5th of each month.

What happens at the end of 15 years?

You get three options. Withdraw the entire corpus tax-free, keep the account open without further contributions (it continues earning interest), or extend it in five-year blocks with fresh contributions and partial withdrawal flexibility.

Can I take a loan against my PPF balance?

Yes, between the start of the 3rd and the end of the 6th financial year you can borrow up to 25% of the balance at the end of the second preceding year, at a rate of 1% above the PPF rate.

Is PPF still relevant under the new tax regime?

The 80C deduction is not available under the new regime, but the tax-free interest and tax-free maturity still are. So PPF continues to be useful as a sovereign-backed, zero-tax compounding instrument — just with one of its three benefits muted.

How accurate is this PPF calculator?

For deposits made at the start of the year, the projection is exact to the rupee assuming a steady 7.1% rate. Real-world accounts will differ slightly if you deposit mid-month, miss years, or if the Ministry of Finance revises the rate during your tenure. The number this tool produces is the standard estimate every Indian fintech platform uses for planning.

// disclaimer

This calculator is an educational projection based on the current PPF rate of 7.1% p.a. compounded annually. Actual returns will vary based on government rate revisions, deposit timing within the month, and any future scheme changes. Verify the latest rate and rules on the National Savings Institute website or with your bank before making investment decisions.