PPF Calculator - Public Provident Fund

Yearly Investment

₹

₹500₹1,50,000

Interest Rate

110

Investment Period

yrs

1550

Maturity Amount

₹13.56 L

Total Invested

₹7.50 L

Total Interest Earned

₹6.06 L

Corpus Breakdown

How your investment grows over time

Invested

₹7.50 L

Returns

₹6.06 L

ROI

80.8%

What is a PPF?

The PPF Calculator computes the maturity amount, total interest earned, and total amount invested for a Public Provident Fund account over any investment horizon. PPF (Public Provident Fund) is a government-backed, long-term savings-cum-investment scheme introduced in India in 1968. It is one of the most widely held investment instruments in the country — not because of the highest returns, but because of its unbeatable combination of guaranteed returns, EEE tax status, and sovereign guarantee backed by the Government of India.

The core PPF mechanic is straightforward: you deposit between ₹500 and ₹1,50,000 each financial year, the government pays interest at a rate reviewed quarterly (currently 7.1% p.a.), and after 15 years your entire maturity amount — principal plus all accumulated interest — is completely tax-free. There is no TDS, no capital gains tax, and the annual contributions qualify for Section 80C deduction up to ₹1.5 lakh per year. This triple exemption — contributions deductible, interest exempt, maturity tax-free — is called EEE status and is the rarest and most powerful tax classification in Indian income tax law.

The calculator uses the annuity-due formula, which assumes contributions are made at the beginning of each financial year, earning interest for the full year. This is the standard PPF projection methodology and produces numbers consistent with what you see on bank and post office PPF calculators. For a ₹1,50,000 annual deposit at 7.1% over the standard 15-year lock-in, the maturity amount is approximately ₹40.68 lakh — against a total investment of ₹22.5 lakh, generating over ₹18 lakh in tax-free interest.

The reverse mode is particularly useful for goal-based planning: if you know you want ₹50 lakh tax-free after 15 years, the calculator tells you exactly how much to deposit each year. This turns a vague long-term goal into a concrete, actionable monthly saving figure. For those planning retirement, compare the PPF projection alongside the NPS Calculator to understand how each instrument contributes to your overall retirement corpus.

How to use this PPF calculator

Enter your Yearly Investment — the amount you plan to deposit in your PPF account each financial year. This must be between ₹500 and ₹1,50,000. Use the slider to quickly model different annual commitment levels. Most investors target ₹1,50,000 to maximise the 80C deduction.
Set the Interest Rate — the default of 7.1% reflects the current government-set rate. If you want to model a conservative scenario (in case the rate is reduced in future reviews), lower it to 6.5–7%. For an optimistic scenario, try 7.5–8% to see the upside. Use the slider to explore the full sensitivity range.
Choose your Investment Period — 15 years is the mandatory minimum. Move the slider to 20, 25, or 30 years if you plan to extend the account after the initial lock-in. Even without fresh deposits after year 15, the balance continues to earn interest — so a 20-year scenario may represent 15 years of contributions plus 5 years of passive growth.
Read the outputs — the Maturity Amount shows your projected tax-free corpus, Total Invested shows your actual outlay, and Total Interest Earned shows the wealth added by compounding. The pie chart visualises the invested vs gains split.
Switch to Reverse Mode for goal-based planning — click the reverse toggle, enter your target Maturity Amount, keep the interest rate and investment period, and the calculator tells you the yearly deposit required. Check whether the required deposit is within the ₹500–₹1,50,000 range. If not, either extend the tenure or use the SIP Calculator to model the additional corpus needed from equity investments.
Compare scenarios by adjusting tenure — slide from 15 to 25 years and observe how the maturity amount changes. The dramatic jump between 20 and 25 years illustrates exactly why financial planners recommend not withdrawing from PPF at the 15-year mark unless there is a pressing need.

Formula & Methodology

The PPF Calculator uses the annuity-due formula — deposits are assumed to be made at the beginning of each financial year, which means each deposit earns interest for the full year it is made.

Formula:

FV = P × ((1 + r)^n − 1) ÷ r × (1 + r)

Variable definitions:
- FV = Future Value (Maturity Amount)
- P = Yearly Investment (₹)
- r = Annual Interest Rate ÷ 100 (e.g. 7.1% → 0.071)
- n = Investment Period in years
- ^ = exponentiation (power)

Reverse formula (to find required yearly deposit for a target corpus):

P = FV × r ÷ (((1 + r)^n − 1) × (1 + r))

Worked example:

Yearly investment: ₹1,50,000 | Interest rate: 7.1% | Period: 15 years

- r = 7.1 ÷ 100 = 0.071
- n = 15
- (1.071)^15 = 2.8019
- ((2.8019 − 1) ÷ 0.071) × (1.071) = (1.8019 ÷ 0.071) × 1.071 = 25.3789 × 1.071 = 27.18
- Maturity Amount = ₹1,50,000 × 27.18 = ₹40,77,000 (approx.)
- Total Invested = ₹1,50,000 × 15 = ₹22,50,000
- Total Interest Earned = ₹40,77,000 − ₹22,50,000 = ₹18,27,000

Reverse example:

Target maturity: ₹50 lakh | Interest rate: 7.1% | Period: 15 years

P = ₹50,00,000 × 0.071 ÷ ((2.8019 − 1) × 1.071) = ₹3,55,000 ÷ 1.9298 = ₹1,84,000 per year

Since PPF allows a maximum of ₹1,50,000 per year, a ₹50 lakh target in 15 years is not achievable through PPF alone at 7.1%. You would need to extend to 17–18 years, or supplement with equity investments via SIP. Use the CAGR Calculator to model what additional equity return is needed to bridge the gap.

Key assumptions:
- Annual compounding (interest computed monthly, credited on 31st March)
- Deposits assumed at the beginning of each financial year (annuity-due)
- Interest rate held constant throughout the tenure (in reality, the government reviews quarterly)
- No account for partial withdrawals, loans against PPF, or account inactivity penalties
- Tax benefit of 80C deduction and tax-free maturity are not quantified in the outputs (they improve the effective return but depend on individual tax slab)

Frequently Asked Questions

What is PPF and how does it work?

PPF (Public Provident Fund) is a government-backed long-term savings scheme in India introduced under the PPF Act, 1968. You deposit between ₹500 and ₹1,50,000 each financial year into a PPF account held at a bank or post office, and the government pays a fixed interest rate — currently 7.1% p.a. — compounded annually. After the mandatory 15-year lock-in, the entire maturity amount (principal + interest) is tax-free, making it one of the most tax-efficient investment instruments available in India.

What is the PPF interest rate in 2024–25?

The PPF interest rate for the financial year 2024–25 (and continuing into 2025–26) is 7.1% per annum, unchanged since April 2020. The government reviews the PPF rate every quarter alongside other small savings schemes, but has held it steady at 7.1% through multiple review cycles. Interest is compounded annually and credited to your account on 31st March each year, calculated on the minimum balance between the 5th and last day of each month.

What is the PPF calculator formula?

The PPF maturity amount is calculated using the annuity-due formula: FV = P × ((1 + r)^n − 1) / r × (1 + r), where P is the yearly investment, r is the annual interest rate as a decimal (7.1% = 0.071), and n is the number of years. The annuity-due convention is used because deposits made at the beginning of each year earn interest for the full year. For a ₹1,50,000 annual deposit at 7.1% over 15 years, the maturity amount is approximately ₹40.68 lakh.

What is the minimum and maximum PPF investment per year?

The minimum PPF deposit is ₹500 per financial year — if you fail to deposit at least ₹500 in any year, your account becomes inactive and must be revived with a penalty fee of ₹50 per year of default plus the minimum ₹500 for each inactive year. The maximum deposit is ₹1,50,000 per financial year. Any amount deposited beyond ₹1,50,000 in a year earns no interest and is returned without any benefit. Joint accounts are not allowed in PPF — each account is strictly individual.

Is PPF interest taxable in India?

No — PPF enjoys EEE (Exempt-Exempt-Exempt) tax status, the most favourable category in Indian income tax law. Your yearly contributions are eligible for deduction under Section 80C (up to ₹1.5 lakh per year), the interest earned each year is fully tax-exempt, and the maturity amount on withdrawal after 15 years is completely tax-free. This triple exemption makes PPF especially valuable for investors in higher tax brackets, where the effective post-tax return is significantly higher than the nominal 7.1% rate.

Can I withdraw money from PPF before 15 years?

PPF allows partial withdrawal from the 7th financial year onwards — you can withdraw up to 50% of the balance at the end of the 4th year preceding the withdrawal year or 50% of the balance at the end of the immediately preceding year, whichever is lower. Full premature closure is only permitted after 5 complete financial years for specific reasons (serious illness, higher education, change in residential status), with a 1% interest rate reduction as a penalty. Full tax-free withdrawal is only available after the 15-year lock-in completes.

What is the difference between PPF and NPS?

PPF offers guaranteed returns set by the government (currently 7.1% p.a.), full liquidity after 15 years, EEE tax status, and no market risk. NPS is market-linked, offering potentially higher returns (10–12% historical CAGR for equity allocation) but with market volatility, partial lock-in until age 60, and mandatory annuity purchase for 40% of the corpus on retirement. PPF suits conservative investors prioritising capital safety and tax efficiency; NPS suits those who can accept equity risk for potentially larger retirement corpus. Use our [NPS Calculator](/nps-calculator/) to compare NPS projections against PPF returns.

How is PPF interest calculated — monthly or yearly?

PPF interest is computed monthly but credited annually to your account on 31st March. Each month, the interest is calculated on the minimum balance held between the 5th and the last day of that month. This means any deposit made before the 5th of a month earns interest for that entire month; deposits made after the 5th do not earn interest until the following month. The annual rate of 7.1% divided by 12 gives the monthly interest factor applied to each eligible monthly balance, and the total of 12 monthly computations is credited in one shot on 31st March.

How to use the PPF Calculator?

Enter your **Yearly Investment** — the amount you plan to deposit each financial year, between ₹500 and ₹1,50,000. Set the **Interest Rate** using the slider (default 7.1% reflects the current government rate). Choose your **Investment Period** — 15 years for the standard tenure, or 20/25/30+ years if you plan to extend in 5-year blocks. The calculator instantly shows the Maturity Amount, Total Invested, and Total Interest Earned. Switch to Reverse Mode to enter your target corpus and find out the yearly investment required to reach it.

Can I extend PPF after 15 years?

Yes — after the initial 15-year tenure, you can extend your PPF account in blocks of 5 years indefinitely. You can extend with continued deposits (contributions + interest continue) or without deposits (existing balance continues to earn interest at the prevailing rate without fresh contributions). The extension must be requested within one year of the maturity date; if no request is made and no withdrawal is taken, the account is automatically extended without fresh contributions. This flexibility makes PPF viable for 20, 25, or even 30-year investment horizons.

What is the difference between PPF and Fixed Deposit for long-term savings?

PPF offers EEE tax status making the effective post-tax return 7.1% (equivalent to a ~10% pre-tax return for a 30% tax bracket investor), guaranteed government backing, and a 15-year lock-in. FDs offer higher flexibility (1–10 year tenures), but interest is fully taxable as income, bringing the effective post-tax return for a 30% tax payer to around 4.9–5.2% on a 7% FD. For a 10–15 year horizon with no liquidity requirement, PPF almost always wins on post-tax returns. Use our [Fixed Deposit Calculator](/fixed-deposit-calculator/) to compare your FD maturity against PPF at the same investment amount and tenure.

What CAGR does PPF deliver and how does it compare to equity funds?

PPF delivers a guaranteed CAGR equal to the prevailing government-set rate — 7.1% as of 2025. Equity mutual funds have historically delivered 12–16% CAGR over 15-year periods in India, but with significant volatility. Adjusting for the tax impact (PPF is tax-free; equity LTCG above ₹1.25 lakh is taxed at 12.5%), the effective return gap narrows somewhat, but equity still leads over long horizons. A balanced approach allocates a portion to PPF for guaranteed, tax-free base corpus and a portion to equity SIPs for growth — use our [SIP Calculator](/sip-calculator/) to model the equity component alongside your PPF projection.