PPF Calculator (Public Provident Fund)
Calculate the maturity value of your Public Provident Fund account. PPF is India's favorite tax-free investment: deposits up to ₹1.5 lakh/year, government-guaranteed interest, and a 15-year lock-in with EEE tax status.
How to use this calculator
- Enter your planned yearly investment (₹500 to ₹1,50,000).
- Keep the current PPF interest rate or adjust it.
- Set the duration — 15 years minimum, extendable in 5-year blocks.
- Press Calculate to see your tax-free maturity amount.
Formula used
Where P is the yearly deposit, r the annual rate, n the years — an annuity-due since deposits made early in the year earn that year's interest. PPF interest compounds annually and is fully tax-exempt.
Example calculation
Investing ₹1,50,000/year at 7.1% for 15 years:
Total invested = ₹22.5 lakh → maturity ≈ ₹40.68 lakh, with about ₹18.18 lakh of completely tax-free interest.
What is PPF?
The Public Provident Fund is a government-backed long-term savings scheme with EEE status — the deposit qualifies for Section 80C deduction, the interest is tax-free, and the maturity amount is tax-free. No market-linked product matches that combination of safety and tax treatment.
The trade-off is liquidity: a 15-year lock-in, with partial withdrawals only from year 7 and loans from year 3. Deposit before the 5th of the month to earn that month's interest.
Why use this calculator?
- See the real power of 15 years of tax-free compounding before committing.
- Compare PPF's guaranteed return against FDs (taxable) and equity (volatile).
- Plan extensions — continuing 5 more years past maturity grows the corpus dramatically.
Frequently asked questions
Is PPF interest really tax-free?
Yes — PPF has EEE status: the investment is deductible under 80C (old regime), and both interest and maturity are fully exempt from income tax. This makes its effective return higher than a same-rate FD, whose interest is taxed.
Can I withdraw PPF before 15 years?
Partially, from the 7th financial year (up to 50% of the balance 4 years prior). Full premature closure is allowed only after 5 years for specific reasons like medical emergencies or education, with a 1% interest penalty.
What happens after 15 years?
You can withdraw everything tax-free, extend by 5-year blocks with fresh deposits, or extend without deposits while the balance keeps earning interest. Many investors extend — the later years earn the most.
When should I deposit for maximum interest?
Before April 5th each year (or the 5th of any month for monthly deposits). PPF interest is calculated on the lowest balance between the 5th and month-end, so early deposits earn a full extra month.