PPF Calculator
Use this PPF calculator to project the maturity value of your Public Provident Fund account over its standard 15-year tenure (or with extensions in 5-year blocks). Enter your annual contribution, the current rate (7.1% per annum for Q1 FY 2026-27), and the tenure — the calculator shows your final corpus, total deposited, and total interest earned, all of which is fully tax-free under EEE (Exempt-Exempt-Exempt) status.
This public provident fund calculator applies the official PPF interest formula, which compounds annually and uses the lowest balance between the 5th and last day of each month for monthly interest accrual. Whether you deposit a single lumpsum at the start of every financial year or contribute monthly, the calculator gives you an accurate maturity projection. PPF remains India's most tax-efficient long-term debt instrument — the only one with EEE status alongside EPF.
How this calculator works
What is PPF?
The Public Provident Fund is a government-backed, long-term savings scheme administered by the Ministry of Finance. Originally introduced in 1968, it remains one of the most popular tax-saving instruments in India. PPF accounts can be opened at any Post Office or designated bank (SBI, HDFC, ICICI, Axis, PNB and most others). The scheme is open to all resident Indians — minor, adult, salaried, self-employed. NRIs cannot open new PPF accounts but can continue existing ones until maturity.
Current PPF interest rate
The PPF rate for Q1 FY 2026-27 (April–June 2026) is 7.1% per annum — the same rate that has been in effect since April 1, 2020. The Finance Ministry reviews the rate every quarter, but it has not changed in over 6 years despite the RBI's repo rate fluctuating between 4% and 6.5% in that period. The rate is technically benchmarked to the 10-year G-Sec yield plus 25 bps, though the government does not always strictly follow this guidance.
Investment limits
- Minimum: ₹500 per financial year (else the account becomes inactive)
- Maximum: ₹1,50,000 per financial year — combined across self and any minor accounts you've opened
- Frequency: Up to 12 deposits per year, in any combination — monthly, quarterly, lumpsum at start of year
- Tenure: 15 years initial; can be extended in 5-year blocks indefinitely
The "5th of month" rule — why timing matters
PPF interest is calculated monthly on the lowest balance between the 5th and the last day of the month, then credited annually on March 31. So if you deposit ₹1.5 lakh on April 6, you lose interest for that month (the deposit happened after the 5th). Depositing on April 4 captures that month's interest.
For maximum returns, the optimal strategy is: deposit the full ₹1.5 lakh between April 1 and April 5 each year. This earns interest on the entire ₹1.5 lakh for all 12 months. Spreading the same ₹1.5 lakh as ₹12,500/month from April to March loses approximately ₹6,000-7,000 in compounded interest over 15 years.
The EEE tax advantage
PPF is one of only two Indian instruments with EEE (Exempt-Exempt-Exempt) status — the other is EPF for matched contributions. EEE means:
- Exempt at investment: Up to ₹1.5 lakh deduction under Section 80C (old tax regime only — not available in new regime)
- Exempt at accrual: Annual interest credited is fully tax-free
- Exempt at maturity: The entire maturity corpus is tax-free
An ELSS or NPS earning a higher headline return often delivers a lower post-tax yield than PPF because of capital gains or annuity tax at exit. PPF's 7.1% post-tax = 10.1% pre-tax for a 30%-slab taxpayer.
Partial withdrawals and loans
- Loan facility: Available between year 3 and year 6. Maximum loan = 25% of balance at the end of the second preceding year. Interest charged: 1% above the prevailing PPF rate.
- Partial withdrawal: Allowed from year 7 onwards. Maximum = 50% of balance at end of 4th preceding year, or end of preceding year — whichever is lower.
- Premature closure: Allowed only after 5 years for specific reasons (life-threatening illness of self/family, higher education, change in residence to another country) — with a 1% interest penalty.
Extension after 15 years
At maturity, you have three options: (1) Withdraw the entire amount tax-free, (2) Extend the account for 5 more years without further contributions — the corpus continues earning 7.1%, (3) Extend for 5 years with contributions — continue depositing up to ₹1.5L/year and earning interest. Extension can be repeated indefinitely. Many investors extend their PPF beyond 30 years as a tax-free retirement cushion.
Worked example
Example 1 — ₹1,50,000/year for 15 years at 7.1%:
- Total deposited: ₹22,50,000
- Maturity value: ₹40,68,209
- Interest earned: ₹18,18,209
- Effective tax-free corpus equal to ~₹26 lakh of pre-tax salary at 30% slab
- Wealth multiplier: 1.81× — your money nearly doubles tax-free
Example 2 — ₹50,000/year for 25 years (15 + two 5-year extensions) at 7.1%:
- Total deposited: ₹12,50,000
- Maturity value: ₹34,84,000 approximately
- Interest earned: ₹22,34,000
- The extension years are where compounding really takes off — last 10 years generate more interest than first 15
Example 3 — ₹1,50,000/year for 15 years deposited on April 5 vs April 25:
- April 5 (within the 5th-of-month grace): captures interest for April → maturity ₹40,68,209
- April 25 (after the 5th): loses April's interest each year → maturity approximately ₹40,06,000
- Difference over 15 years: roughly ₹62,000 — just from timing the deposit by 20 days
Frequently asked questions
Can I have more than one PPF account?
No. The rules permit only one PPF account per individual (apart from minor accounts you operate as guardian for your child). If you accidentally open a second account, only the first one earns interest — deposits in the second are returned without interest. Banks now check this via PAN, but legacy accounts at multiple institutions sometimes go undetected. Always verify with a single PAN-linked account.
Is PPF a good investment compared to ELSS or NPS?
PPF wins on safety and tax efficiency — government-guaranteed, EEE status, no equity risk. ELSS often wins on long-term return — historical equity returns of 12-14% beat PPF's 7.1%, but you pay 12.5% LTCG tax on gains above ₹1.25L. NPS gives even higher equity allocation, but the 40% mandatory annuity is taxed as income each year. For a balanced portfolio, allocate 20-30% to PPF (safe debt), 50-60% to equity (ELSS, mutual funds), 10-20% to NPS (additional 80CCD(1B) tax saving).
Can I open a PPF account for my minor child?
Yes. A parent or legal guardian can open a PPF account in a minor's name. The combined annual deposit across the parent's and minor's accounts cannot exceed ₹1.5 lakh — the limit is per individual depositor, not per account. Once the child turns 18, they take over the account independently. PPF for minors is one of the most tax-efficient ways to build a long-term corpus for higher education or marriage.
What happens if I deposit more than ₹1.5 lakh in a year?
The excess is returned to you without any interest. Only the first ₹1.5 lakh credited within the financial year earns interest and qualifies for the Section 80C deduction. Banks usually reject deposits that would push the year's contribution above ₹1.5 lakh, but online deposits sometimes go through and are reversed later.
Is PPF maturity tax-free even under the new tax regime?
Yes — the maturity is tax-free under both old and new tax regimes. However, the ₹1.5 lakh deduction at investment time is only available in the old regime. Under the new regime, you still get the tax-free interest accrual and tax-free maturity, but you don't save tax on the contribution itself. PPF is therefore most efficient under the old tax regime.
Can I close my PPF account before 15 years?
Premature closure is allowed only after 5 years and only for specific reasons: (1) life-threatening illness of the account holder, spouse, dependent children or parents, (2) higher education of self or dependent children, (3) change of residency status (becoming an NRI). The bank/post office may demand documentation. A 1% interest rate penalty applies — so a closure in year 7 with 7.1% rate gets only 6.1% retroactively.
What is the loan facility against PPF?
Between years 3 and 6, you can take a loan from your own PPF balance — up to 25% of the balance at the end of the second preceding year. Interest is 1% above the prevailing PPF rate (so 8.1% in 2026). Loan must be repaid within 36 months. Defaulting on the loan converts the unpaid balance into a withdrawal, reducing your maturity. After year 6, the loan facility ends and partial withdrawal becomes available instead.
Can I deposit lumpsum on April 1 every year for maximum returns?
Yes — this is the optimal strategy. Depositing ₹1.5 lakh between April 1-5 every year captures interest for all 12 months, while depositing on April 25 means losing April's interest. Over 15 years of disciplined April-deposits, you earn roughly ₹60,000-₹70,000 more than spreading the same ₹1.5 lakh into 12 monthly instalments of ₹12,500.
How is monthly PPF interest calculated?
Banks calculate interest each month based on the lowest balance between the 5th and the last day of that month. The monthly interest is then summed and credited to your account on March 31 each year. So a ₹50,000 deposit on April 4 earns interest from April; the same deposit on April 6 misses April's interest entirely. This is why disciplined PPF investors deposit before the 5th of each month.
Can I extend PPF beyond 15 years?
Yes, in 5-year blocks indefinitely. At maturity, you have three options: withdraw fully (default if you don't respond), extend with continued deposits (need to submit Form H within 1 year), or extend without contributions (the corpus keeps earning the prevailing PPF rate). Extension with contributions is best if you're still in the accumulation phase. Extension without contributions is best for retirees who want to keep the corpus growing tax-free without locking new money.
Is PPF interest rate guaranteed?
Not for the entire 15-year tenure. The Finance Ministry reviews the rate every quarter and can revise it. Historically, the rate has been quite stable — 7.1% since April 2020 (over 6 years unchanged). Going further back, PPF was at 8.0% in 2018, 8.7% in 2014, 12% in early 2000s. The rate has been in a long downtrend matching the broader interest-rate environment. Don't assume 7.1% will hold for the next 15 years — the maturity calculator output is an estimate based on the current rate.