PPF Calculator

HOW IT WORKS

How a PPF calculator works

The Public Provident Fund is one of India's most popular long-term savings schemes, and for good reason: it is backed by the Government of India, its returns are guaranteed for each quarter, and the interest and maturity are completely tax-free. A PPF calculator turns the two things you control — how much you put in each year and for how long — into the single figure that matters: what your account will be worth at maturity, and how much of that is interest the government has paid you.

PPF interest compounds annually. Each financial year your contribution is added to the account and the entire balance then earns a year of interest, following a simple rule:

Balance = (Previous Balance + Yearly Investment) × (1 + rate/100)

Applied year after year, that compounding is what turns steady contributions into a substantial corpus. The total interest is just the closing balance minus everything you paid in, and the year-by-year table above shows the balance climbing one year at a time. The ₹1,50,000 limit is per financial year, so check which financial year a date falls in before a late-March deposit.

A worked example

Invest the maximum ₹1,50,000 every year at a 7.1% rate for the full 15-year term. You contribute ₹22,50,000 in total, but the account matures at about ₹40,68,209 — roughly ₹18,18,209 of tax-free interest on top of what you put in. Because the interest itself earns interest in later years, the second half of the term adds far more than the first, which is the reason starting early and staying invested matters so much with PPF. Notice too that this roughly ₹18 lakh of interest is entirely tax-free, so for a saver in the 30% slab it is worth close to ₹26 lakh of equivalent taxable return — a gap that is easy to overlook when you judge PPF on its headline rate alone.

The rate is not fixed for 15 years

This is the single most misunderstood thing about PPF. The interest rate is reviewed and reset by the Government of India every quarter, so the rate you open the account with is not locked in for the whole term. Over a 15-year life your account will pass through many different quarterly rates. A calculator has to assume a single rate to project a maturity value, so treat the figure here as an estimate based on today's rate, not a promise. When rates change, your actual maturity value will drift above or below the projection.

Contribution limits and Section 80C

You can invest between ₹500 and ₹1,50,000 in a PPF account each financial year, across all your PPF accounts combined. Anything above the ₹1,50,000 ceiling earns no interest and is simply refunded, which is why this calculator caps the yearly amount. Contributions qualify for a deduction under Section 80C of the Income Tax Act, but only under the old tax regime — the new regime, now the default, does not offer it — so for many savers on the old regime, PPF does double duty: a tax deduction now and tax-free growth later.

Deposit by the 5th

When you pay in matters as much as how much. Under the PPF Scheme, 2019, interest for each month is calculated on the lowest balance between the close of the 5th and the end of the month, and the year's interest is credited on 31 March. A deposit made on or before the 5th earns that month's interest; one made on the 6th waits until the next month. The best time of all is by 5 April, the start of the financial year: the full ₹1,50,000 then earns interest for all twelve months. Over 15 years at 7.1% that one habit is worth ₹2,69,694 compared with depositing the same amount in late March, and ₹1,23,610 compared with paying ₹12,500 a month on time. If you can only pay monthly, pay by the 5th. The panel above the year-by-year table shows the difference for your own amount and term.

The EEE tax advantage

PPF enjoys what is called EEE status — exempt, exempt, exempt. Your contribution is exempt from tax through Section 80C, the interest credited each year is exempt, and the maturity amount is exempt as well. Only the contribution deduction depends on your regime — it applies under the old tax regime only, since the new regime, now the default, does not offer Section 80C. The tax-free interest and maturity hold either way, so PPF stays worthwhile even on the new regime, just without the upfront deduction. (The Income-tax Act, 2025 is renumbering Section 80C over the next couple of filing cycles, so confirm the current section number on the Income Tax Department's site when you file.) Very few instruments in India offer this combination, and it is the reason PPF's fairly modest headline rate is more attractive than it first looks. For a taxpayer in a higher slab on the old regime, a tax-free 7.1% is equivalent to a considerably higher taxable return.

Lock-in, withdrawals, and extensions

PPF has a 15-year lock-in, but it is not entirely rigid. From the third year you can take a loan against your balance, and from the seventh year you can make limited partial withdrawals. When the initial 15 years end, you have three choices: withdraw the full amount tax-free, extend in blocks of five years while continuing to contribute, or extend without further contributions and simply let the balance keep earning interest. Extending is why the period field here goes beyond 15 years, so you can see how the corpus grows if you keep it running.

Who PPF suits

PPF is built for the conservative, long-horizon saver: someone who wants guaranteed, tax-free growth with zero market risk and does not need the money for at least 15 years. It pairs well with market-linked options like an equity SIP — PPF anchors the safe, predictable part of a portfolio while the SIP chases higher long-term growth. Use this calculator to see the guaranteed side of that picture, then compare it against a SIP projection to decide how to split your savings between certainty and growth.

Using your results

Start with the amount you can realistically commit every year and the term you plan to stay invested, then read the maturity value and the interest portion. Download the year-by-year table as a CSV if you want to track progress or compare a couple of contribution levels. Remember the projection assumes a steady rate and steady contributions — real life rarely matches both exactly — so revisit it whenever the quarterly rate changes or your contribution does.