PPF Calculator

The Public Provident Fund (PPF) is one of India’s most popular long-term savings instruments, offering guaranteed returns with complete tax exemption at every stage — investment, interest, and maturity.

Reviewed by: CalcMojo Editorial Team

This PPF calculator computes your maturity amount and total interest earned over the 15-year tenure (and extensions) based on your annual contribution and the prevailing interest rate.

PPF enjoys EEE (Exempt-Exempt-Exempt) status under Indian tax law: your deposits qualify for deduction under Section 80C (up to ₹1.5 lakh per year), the interest earned annually is tax-free, and the maturity amount is entirely tax-exempt. No other guaranteed-return instrument in India offers this triple tax benefit, making PPF the cornerstone of conservative long-term financial planning.

Whether you are starting your first PPF account, planning annual contributions for maximum returns, comparing PPF with other Section 80C investments, or estimating your corpus at the end of 15 years or beyond, this calculator gives you the exact numbers. Adjust your yearly contribution and see how even small increases compound into lakhs over the long PPF tenure.

How PPF Interest Is Calculated

PPF interest in India is calculated on the lowest balance between the 5th and the last day of each month. This is a critical detail that determines when you should deposit money to maximize returns.

The interest is compounded annually (not monthly or quarterly). At the end of each financial year (March 31), the accumulated interest for all 12 months is credited to your PPF account and itself starts earning interest from the next year onward.

Monthly Interest Calculation:

For each month, the interest is: (Lowest balance between 5th and last day of month) x (Annual rate / 12)

The total annual interest is the sum of all 12 monthly calculations, credited at year-end.

Why Deposit Before the 5th of Each Month:

If you deposit ₹1,50,000 on April 4th, the balance is counted for interest from April onward. If you deposit on April 6th, the deposit misses the April calculation and only earns interest from May. Over 15 years, depositing on April 1st versus April 10th every year can result in a difference of ₹50,000 to ₹1,00,000 in total interest depending on the amount and rate.

Optimal Deposit Strategy:

The ideal approach for maximizing PPF returns is to deposit your entire annual contribution of ₹1,50,000 as a lump sum before April 5th each year. This ensures the full amount earns interest for all 12 months. If you cannot invest the full amount at once, deposit whatever you can before the 5th of each month.

PPF Interest Rate: Current and Historical

The PPF interest rate is set by the Government of India and revised quarterly. As of early 2026, the rate stands at 7.1%. Historically, PPF rates have ranged from 7.1% to 12% over the past three decades.

Recent Rate History:

• FY 2025-26: 7.1%
• FY 2024-25: 7.1%
• FY 2023-24: 7.1%
• FY 2020-21 to FY 2022-23: 7.1%
• FY 2019-20: 7.9% to 8.0%
• FY 2016-17: 8.0% to 8.1%

While this calculator uses a single rate for projection, in reality the rate may change quarterly. The actual maturity amount could be higher or lower depending on rate movements over the 15-year period. However, the rate has been remarkably stable at 7.1% since April 2020, and any changes tend to be incremental (0.1% to 0.25% at a time).

Comparing PPF Returns with Inflation:

At 7.1%, PPF offers a real return of approximately 2% to 3% above inflation (assuming 4-5% inflation). This is respectable for a guaranteed, sovereign-backed instrument. After accounting for the triple tax exemption, the effective pre-tax equivalent return for someone in the 30% bracket is approximately 10.1% — making PPF one of the best risk-adjusted returns available in India.

PPF Account Rules You Should Know

Minimum and Maximum Deposits. You must deposit at least ₹500 per year to keep the account active. The maximum annual deposit is ₹1,50,000. Deposits can be made in a minimum of 1 and maximum of 12 installments per year.

Account Tenure. The initial tenure is 15 financial years from the year of account opening (not from the date). For example, an account opened in November 2025 matures at the end of FY 2040-41 (March 2041). After 15 years, you can extend in blocks of 5 years, indefinitely, with or without further contributions.

Partial Withdrawal. From the 7th financial year onward, you can withdraw up to 50% of the balance at the end of the 4th preceding year or the year immediately preceding, whichever is lower. Withdrawals are tax-free.

Loan Against PPF. Between the 3rd and 6th financial years, you can take a loan against your PPF balance up to 25% of the balance at the end of the 2nd preceding year. The interest rate on the loan is 1% above the prevailing PPF rate. Loans must be repaid within 36 months.

Premature Closure. PPF accounts can be closed prematurely only after 5 years and only for specific reasons: serious illness of the account holder, spouse, or children, higher education of the account holder or children, or change in residency status. A penalty of 1% reduced interest rate applies.

Nomination. You can nominate one or more persons. In case of the account holder’s death, the nominee receives the entire balance tax-free. There is no estate duty or inheritance tax on PPF proceeds.

PPF as a Tax-Saving Instrument

PPF occupies a unique position in India’s tax landscape due to its EEE status.

Section 80C Deduction. Deposits up to ₹1,50,000 qualify for deduction under Section 80C of the Income Tax Act. For someone in the 30% tax bracket plus cess, this means an immediate tax saving of approximately ₹46,800 on the full ₹1,50,000 deposit. Use the Income Tax Calculator (Old vs New) to see the exact impact on your tax liability.

Tax-Free Interest. Unlike FD interest (taxable at slab rate) or RD interest (also taxable), PPF interest is completely exempt from income tax. On a ₹1,50,000 annual deposit over 15 years at 7.1%, total interest earned is approximately ₹18.18 lakh — all tax-free. The same amount in an FD for a 30% bracket taxpayer would lose roughly ₹5.45 lakh to tax.

Tax-Free Maturity. The maturity amount (deposits plus accumulated interest) is entirely exempt from tax. There is no capital gains tax, no TDS, and no reporting requirement beyond standard ITR disclosure.

Comparison with Other 80C Instruments:

• ELSS: Higher potential returns (12-14%) but market-linked. 3-year lock-in per SIP installment. Gains above ₹1.25 lakh taxed at 12.5%. Use SIP Calculator to model ELSS returns.
• Tax-Saving FD: 5-year lock-in. Interest taxable at slab rate. No EEE benefit.
• NSC: 5-year tenure. Interest taxable in the final year. Returns similar to PPF.
• EPF: EEE status like PPF but tied to employment. Use EPF Calculator to check EPF returns.
• Life Insurance: Returns typically 4-6%. Tax-free maturity only if premium is within limits. Not competitive as a pure investment.

For a conservative investor maximizing 80C, the optimal combination is: EPF (automatic for salaried) + PPF (balance of 80C limit) + ELSS (if willing to accept equity risk). This covers the ₹1.5 lakh 80C limit with a mix of guaranteed and growth-oriented instruments.

PPF Extension After 15 Years

At maturity, you have three options:

Option 1: Withdraw Everything. Close the account and take the full maturity amount. This is appropriate if you need the funds for a specific purpose like retirement spending, home purchase, or child’s education.

Option 2: Extend Without Contributions. Keep the account open for another 5-year block without making any further deposits. The existing balance continues earning interest at the prevailing rate. You can make one withdrawal per year. This is useful if you want to keep the tax-free compounding running without adding new money.

Option 3: Extend With Contributions. Keep the account open and continue depositing up to ₹1,50,000 per year. The 80C deduction continues to apply. You can make one withdrawal per year of up to 60% of the balance at the beginning of the extension period. This option provides continued tax-free compounding plus ongoing tax deductions.

Power of Extension:

A PPF started at age 25 and extended to age 60 (35 years total) with ₹1,50,000 annual deposits at 7.1% yields approximately ₹2.26 crore. Total deposits: ₹52.5 lakh. Total tax-free interest: approximately ₹1.74 crore. This makes PPF a powerful retirement tool when combined with the NPS Calculator and EPF Calculator for a complete retirement plan.

Common PPF Mistakes to Avoid

Depositing After the 5th. As explained above, late deposits lose a month of interest. Over 15 years, this timing error costs thousands of rupees.

Depositing in Multiple Small Amounts. PPF allows up to 12 deposits per year, but small monthly deposits mean most of the money earns interest for fewer months. A lump sum before April 5th maximizes returns.

Forgetting the Minimum Deposit. If you fail to deposit at least ₹500 in a year, the account becomes inactive. Reactivation requires paying ₹50 per year of default plus the ₹500 minimum for each missed year. An inactive account does not earn interest at the standard rate.

Not Extending After Maturity. If you do not need the funds at 15 years, failing to extend means missing out on continued tax-free compounding. The extension request must be made within one year of maturity.

Opening Multiple Accounts. Only one PPF account per individual is permitted (you can open one for your minor child separately). A second account, if discovered, will be closed, and the deposits will earn only savings account interest for the entire duration.

This calculator provides estimates. Actual returns depend on your financial institution’s terms.

Frequently Asked Questions

What is the current PPF interest rate?

The PPF interest rate is set quarterly by the Government of India. As of early 2026, the rate is 7.1% per annum, compounded annually. The rate has been stable at 7.1% since April 2020. Check the Ministry of Finance notification each quarter for any changes.

How much can I invest in PPF per year?

The minimum annual deposit is ₹500 and the maximum is ₹1,50,000. You can deposit in a minimum of 1 and maximum of 12 installments per year. Deposits above ₹1,50,000 in a year will not earn interest and will not qualify for Section 80C deduction.

When should I deposit money in PPF for maximum returns?

Deposit before the 5th of each month, as interest is calculated on the lowest balance between the 5th and last day of the month. The ideal strategy is to deposit the full ₹1,50,000 as a lump sum before April 5th so the entire amount earns interest for all 12 months of the financial year.

Can I withdraw money from PPF before maturity?

Partial withdrawals are allowed from the 7th financial year onward, up to 50% of the balance at the end of the 4th preceding year. Full premature closure is allowed only after 5 years for specific reasons like serious illness, higher education, or change in residency, with a 1% interest rate penalty.

Is PPF better than FD for long-term savings?

For long-term savings, PPF is generally superior to FD due to its EEE tax status. At 7.1%, PPF’s tax-free return equals roughly 10.1% pre-tax for someone in the 30% bracket. An FD at 7% with 30% tax effectively yields only 4.9%. However, FDs offer flexible tenures and liquidity that PPF does not.

Can I extend PPF after 15 years?

Yes, PPF can be extended in blocks of 5 years indefinitely. You can extend with or without further contributions. With contributions, you continue getting 80C benefits and can withdraw up to 60% of the balance per year. Without contributions, the existing balance continues earning tax-free interest.

How is PPF different from EPF?

PPF is a voluntary savings scheme open to all Indian residents with a 15-year tenure and ₹1.5 lakh annual limit. EPF is mandatory for salaried employees in organizations with 20-plus employees, with contributions from both employer and employee. Both have EEE tax status. EPF currently offers 8.25% interest versus PPF’s 7.1%. PPF is self-directed; EPF is employment-linked.

Default rates shown are illustrative. Always verify current rates with your institution. Data accurate as of: March 2026