PPF Calculator

Calculate PPF maturity over the 15-year lock-in period with the current government-declared rate. Free, privacy-first — inputs never leave your browser.

Savings🇮🇳India · FY 2026-27Reviewed Apr 2026No sign-up · Runs in your browser

Details

Yearly Deposit₹1,50,000

PPF Rate7.1%

Tenure15yrs

Result

Maturity Value

₹40,68,209

Invested

₹22,50,000

Interest

₹18,18,209

For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.

How it works

What is the Public Provident Fund?

The Public Provident Fund (PPF) is a long-term savings scheme operated by the Department of Posts and authorised banks under the Public Provident Fund Scheme, 2019, notified by the Ministry of Finance. It is one of the few remaining instruments in India with an EEE (exempt-exempt-exempt) tax status — contributions qualify for section 80C deduction, interest is tax-free, and the maturity corpus is tax-free. Rates are reset quarterly by the Department of Economic Affairs and published at nsiindia.gov.in. The current rate for the Q1 FY 2026-27 window is 7.1% p.a., compounded annually.

How PPF is calculated

Interest is computed each month on the lowest balance between the 5th and the last day of the month, but credited only at year-end. The standard compounding formula for a recurring annual deposit is:

M = P × [((1 + r)^n − 1) / r] × (1 + r)

Where P is the annual contribution (min ₹500, max ₹1.5 lakh), r is the annual rate (0.071), and n is the number of years (default 15). To earn full-month interest, deposit by the 5th of each month.

Worked example — ₹1.5 lakh per year for 15 years at 7.1%

Depositing the maximum ₹1,50,000 each year on 1 April grows to approximately ₹40.68 lakh after 15 years. Of that, ₹22.5 lakh is your principal and ~₹18.18 lakh is tax-free interest. Extending the account in 5-year blocks (allowed twice automatically, then on request) pushes the corpus past ₹1 crore by year 25 — still entirely tax-free.

Regulatory context

Lock-in: 15 financial years from account opening; partial withdrawal allowed from year 7.
Loan facility: from year 3 to year 6, up to 25% of the balance at the end of year 2.
Section 80C: contributions up to ₹1.5 lakh qualify (aggregate with EPF, ELSS, life insurance, etc.).
One account per person: minor accounts are separate; no joint accounts.
Extension: after year 15, extend in 5-year blocks with or without further contributions (Form H within 1 year of maturity).

Common mistakes

Depositing after the 5th. That month's interest is lost — over 15 years this can cost ₹50,000+.
Opening an NRI PPF. Non-residents cannot open new PPF accounts; existing ones can be retained till maturity but not extended.
Treating PPF as short-term. Pre-mature closure is allowed only after 5 years and with a 1% interest penalty — only in limited cases (higher education, serious illness).
Missing the ₹500 minimum. An account becomes dormant; reactivation needs ₹50 penalty + ₹500 for each missed year.
Choosing PPF over ELSS under the new regime. Without 80C, PPF's 7.1% loses to equity over long horizons for most investors.

Common questions about PPF

What is the current PPF interest rate?+

The PPF rate for 2026 is 7.1% p.a., compounded annually. The rate is reviewed quarterly by the government but has been stable at 7.1% since Q1 2020. Interest is credited on March 31 every year.

What is the PPF investment limit?+

Minimum ₹500/year, maximum ₹1.5 lakh/year (aggregate across all PPF accounts of an individual). Contributions above ₹1.5L in a year don't earn interest and can't be withdrawn as 80C.

Is PPF fully tax-free?+

Yes — PPF has Exempt-Exempt-Exempt (EEE) status: (1) Contribution qualifies for 80C deduction up to ₹1.5L (old regime); (2) Annual interest is tax-free; (3) Maturity amount is 100% tax-free. One of the very few fully tax-free instruments.

Can I withdraw from PPF before 15 years?+

Partial withdrawal allowed from year 7 onwards — up to 50% of the balance at the end of year 4. Loans available from year 3-6 (up to 25% of year-2 balance). Full premature closure only in specific cases (terminal illness, higher education of children) with 1% interest penalty.

Can I extend PPF beyond 15 years?+

Yes, in blocks of 5 years. Options: (1) Extend without further contribution — balance keeps earning interest; (2) Extend with contribution — continue depositing ₹1.5L/year for more compounding.

Should I deposit monthly or lump sum in PPF?+

Lump sum before April 5 each year maximizes interest (entire ₹1.5L earns full-year interest). Monthly deposits earn partial-year interest — deposit before 5th of each month to count that month. Over 15 years, yearly lump sum vs monthly makes ~₹60,000 difference.

Can I open PPF for my child?+

Yes. Minor can have a PPF opened by parent/guardian. The ₹1.5L limit applies combined across parent + minor accounts — not separately.

Where can I open a PPF account?+

Any post office or authorized bank (SBI, HDFC, ICICI, PNB, BoB, Canara, etc.). Most banks offer online PPF with auto-debit. You can have only one PPF account per person (multiple accounts merge automatically).