Contributing the full ₹1,50,000 Section 80C limit to PPF every year is the standard strategy for investors who want the maximum tax deduction alongside a government-backed, tax-free return.
The Scenario
- Yearly investment: ₹1,50,000 (the maximum 80C-eligible PPF contribution)
- Interest rate: 7.1% per annum (current government-set rate, compounded annually)
- Investment period: 15 years (PPF's standard maturity period)
The live result above is computed using the exact same annuity formula the PPF Calculator applies, the real output for these inputs, not a rounded estimate.
What This Means
Total contributions over 15 years add up to ₹22,50,000, and the interest earned on top of that is larger than the amount you actually put in, a direct result of PPF's annual compounding working on a steadily growing balance for a decade and a half. This is also one of the few investment options in India offering guaranteed, fully tax-free returns (contribution, interest, and maturity amount are all exempt), which is why it remains a core holding in many long-term Indian portfolios despite the 15-year lock-in.
Try Your Own Numbers
Not everyone can commit the full ₹1,50,000 every year. Click through to the PPF Calculator, the ₹1,50,000 yearly investment carries over automatically, and you can lower the amount or extend the investment period to match your own savings plan.