PPF Calculator

A PPF calculator tells you exactly what your Public Provident Fund account will be worth at maturity. Enter your yearly deposit, the interest rate and the number of years, and you get your total deposits, total tax free interest and final maturity value. For a scheme that runs for 15 years, that clarity matters, because small choices like depositing in April instead of March change the outcome by thousands of rupees.

This tool is for salaried employees, self employed professionals, parents saving for a child's future, and anyone who wants a government backed, fully tax free, long term savings option. PPF suits people who value safety and tax efficiency over high risk returns.

What Is PPF?

PPF stands for Public Provident Fund. It is a long term savings scheme backed by the Government of India, available through banks and post offices. The scheme runs under the Public Provident Fund Scheme, 2019. You open an account, deposit money every financial year, and the balance earns interest that is set by the government and reviewed every quarter.

PPF is famous for its EEE tax status, which means Exempt, Exempt, Exempt. Your deposits qualify for a tax deduction under the old tax regime, the interest earned every year is tax free, and the maturity amount you withdraw is also tax free. Very few investment options in India offer all three exemptions together, which is why PPF remains popular even among investors who also invest in mutual funds and stocks.

The key rules are simple. The minimum deposit is Rs. 500 per financial year, and the maximum is Rs. 1,50,000 per financial year. The normal tenure is 15 years, counted from the end of the financial year in which the account was opened. After maturity, you can extend the account in blocks of 5 years, with or without further deposits, as many times as you like. An account can be opened by a resident individual, and a guardian can open one for a minor. NRIs cannot open a new PPF account, though an account opened while resident can generally continue till maturity on a non-repatriation basis.

How Is PPF Interest Calculated?

PPF interest is compounded annually and credited to your account on 31 March each year. The current rate for October to December 2026 is 7.1% per annum, unchanged for several quarters. The government reviews the rate every quarter, so it can change in future quarters, and the rate that applies in a given year is the rate notified for that period.

The detail that trips up most people is the 5th of the month rule. Interest for any given month is calculated on the lowest balance in your account between the close of the 5th day of the month and the end of that month. If you deposit on the 6th of a month, that fresh money earns no interest for the rest of that month. Over a 15 year tenure, consistently depositing on or before the 5th, or better, depositing your full annual amount between 1 April and 5 April, earns noticeably more interest than depositing at year end.

To put a number on it: depositing Rs. 1,50,000 every year for 15 years gives about Rs. 40,68,208 if you deposit by 5 April each year, against about Rs. 39,44,600 if you deposit Rs. 12,500 every month. The yearly early deposit wins by roughly Rs. 1.2 lakh, purely from timing.

Worked Example: Rs. 1,50,000 Every Year for 15 Years

Let us trace what happens when you deposit the maximum Rs. 1,50,000 at the start of every financial year at 7.1% interest.

1. Year 1: You deposit Rs. 1,50,000. Interest at 7.1% is Rs. 10,650. Balance: Rs. 1,60,650.
2. Year 2: You deposit Rs. 1,50,000, making Rs. 3,10,650. Interest at 7.1% is Rs. 22,056. Balance: Rs. 3,32,706.
3. Year 3: You deposit Rs. 1,50,000, making Rs. 4,82,706. Interest at 7.1% is Rs. 34,272. Balance: Rs. 5,16,978.
4. Year 5: Balance reaches Rs. 9,25,701.
5. Year 10: Balance reaches Rs. 22,30,124.
6. Year 15: Balance reaches Rs. 40,68,209.

Your total deposits over 15 years are Rs. 22,50,000, and the tax free interest earned is about Rs. 18,18,209. Notice how the interest column grows every year even though your deposit stays the same. That is compounding: interest earned in earlier years itself earns interest in later years. If you extend for two further five year blocks and keep depositing, the balance crosses Rs. 1 crore after 25 years, which shows why PPF rewards patience more than almost any other safe option.

How to Use This PPF Calculator

1. Enter the amount you plan to deposit each year, up to Rs. 1,50,000.
2. Enter the interest rate. The current rate is 7.1%, but you can test other rates to see how a future rate change would affect maturity.
3. Enter the tenure in years. The standard tenure is 15 years, but you can also model extensions.
4. Click calculate to see your total deposits, total interest earned and maturity value.
5. Try different deposit amounts to find the yearly figure that fits your budget while maximising tax free growth.

A practical tip: if you cannot afford Rs. 1,50,000 at once, deposit whatever you can before 5 April to lock in a full year of interest on that amount, then add more during the year. Even partial early deposits beat waiting till March.

PPF Rules You Should Know

Deposits and Limits

You must deposit at least Rs. 500 in a financial year to keep the account active. If you miss a year, the account becomes discontinued and can be revived by paying a small penalty along with the missed minimum deposit. The maximum of Rs. 1,50,000 applies across your own account plus any minor accounts you operate as guardian. Any amount deposited above Rs. 1,50,000 earns no interest and is refunded.

Partial Withdrawal

From the seventh financial year onwards, you can make one withdrawal per year of up to 50% of the lower of the balance at the end of the fourth preceding year or the preceding year. For a Rs. 1.5 lakh per year depositor, that works out to roughly Rs. 2.58 lakh available in year seven. This gives PPF some liquidity for emergencies or planned expenses without breaking the long term habit.

Loan Against PPF

From the third to the sixth financial year, you can take a loan of up to 25% of the balance at the end of the second year before the year you apply. The loan interest is 1% above the PPF rate. This is cheaper than most personal loans and does not require selling your investment.

Premature Closure

Full closure before 15 years is allowed only after five years, and only for specified reasons such as serious illness, higher education, or a change of residency status. In such cases, interest is paid at 1% less than the normal rate for the period. This is a genuine restriction, so treat PPF as money you will not need for a long time.

Extension After Maturity

After 15 years, you can extend in blocks of 5 years any number of times. To keep depositing during extension, submit Form 4 within one year of maturity. If you do not, the account continues without fresh deposits and still earns interest on the existing balance.

Tax Treatment

PPF deposits qualify for deduction up to Rs. 1,50,000 per year under the old tax regime, within the overall Section 80C limit. The interest and maturity amount are tax free under both regimes. What the new regime removes is only the deduction on deposits.

Factors That Affect Your PPF Maturity

• Yearly deposit amount: The single biggest factor. Depositing the maximum every year roughly doubles the maturity compared with depositing half the maximum.
• Deposit timing: Depositing before 5 April earns a full year of interest on that amount. Depositing late in the year loses months of interest every single year.
• Interest rate changes: The government reviews the rate quarterly. A sustained rate cut or hike changes the final figure, which is why the calculator lets you test different rates.
• Tenure and extensions: Extending beyond 15 years adds powerful compounding years. The balance grows fastest in the later years, so extensions are disproportionately rewarding.
• Missed years: A discontinued account that is not revived loses deposit years, and those lost years can never be fully made up.

Benefits of PPF

First, safety. PPF is backed by the Government of India, so your principal is as safe as a government savings instrument gets. Second, tax efficiency. The EEE status means no tax at any stage in the old regime, and no tax on interest or maturity in any regime. Third, the return is respectable for a risk free option: 7.1% tax free is equivalent to a much higher pre tax return for someone in a higher tax slab. Fourth, discipline. The 15 year structure and withdrawal restrictions protect you from spending long term savings on short term wants. Fifth, flexibility within safety: partial withdrawals from year seven and loans from year three give you access in genuine need without destroying the account. If you are also investing for growth, a SIP calculator can show you the market linked side of your plan, while PPF anchors the safe side. And for retirement specifically, comparing PPF with our NPS calculator helps you split money between guaranteed tax free growth and market linked pension growth.

Common Mistakes to Avoid

• Depositing late in the financial year: Waiting till March loses nearly a full year of interest on that deposit. Deposit early in April instead.
• Depositing after the 5th of a month: Money deposited on the 6th earns nothing for that month. Keep the 5th of the month rule in mind for monthly deposits too.
• Depositing more than Rs. 1,50,000: The excess earns no interest and is refunded, so it is dead money. Put the surplus in a FD calculator plan or an RD calculator plan instead.
• Missing a year: The account becomes discontinued and needs revival with a penalty. Set a yearly reminder or an auto instruction.
• Treating PPF as an emergency fund: Withdrawals are restricted and closure is penalised. Keep a separate emergency fund so you never have to break PPF early.
• Ignoring extensions: Many people withdraw at 15 years by default. If you do not need the money, extending keeps tax free compounding running, often to a much larger final figure.

Limitations of a PPF Calculator

A PPF calculator assumes a constant interest rate for the whole tenure, but the government reviews the rate quarterly and it can change. It also assumes deposits are made at the start of each financial year and that no partial withdrawals or loans are taken, both of which would reduce the final balance. The calculator does not model the old versus new tax regime choice for the deposit deduction. Treat the result as a planning estimate under current rules, and confirm the rate and rules with your bank or post office before relying on the figure for a major decision.

PPF Growth Comparison: Yearly Deposit vs Maturity

These figures assume a 7.1% interest rate, deposits made at the start of each financial year, and a 15 year tenure.

Yearly Deposit	Total Deposited (15 Years)	Interest Earned	Maturity Value
Rs. 50,000	Rs. 7,50,000	Rs. 6,06,070	Rs. 13,56,070
Rs. 1,00,000	Rs. 15,00,000	Rs. 12,12,139	Rs. 27,12,139
Rs. 1,50,000	Rs. 22,50,000	Rs. 18,18,209	Rs. 40,68,209

The relationship is linear: double the yearly deposit and you double the maturity value. But the interest column is where the real story is. On the maximum deposit, tax free interest of Rs. 18,18,209 is nearly as large as the total deposits themselves, which is the reward for staying invested for the full 15 years.

Frequently Asked Questions

What is the current PPF interest rate?

The PPF interest rate is 7.1% per annum for October to December 2026, as notified by the Ministry of Finance. It has stayed at 7.1% since April 2020. The rate is reviewed every quarter, so it can change in January 2027 or later quarters.

How much will I get if I invest Rs. 1.5 lakh a year in PPF for 15 years?

At 7.1%, depositing Rs. 1,50,000 by 5 April every year for 15 years gives about Rs. 40,68,208. You invest Rs. 22,50,000 and earn about Rs. 18,18,208 in tax free interest. Depositing monthly instead of yearly gives a slightly lower figure, around Rs. 39,44,600 for Rs. 12,500 a month.

Can I withdraw money from PPF before 15 years?

Yes, partially. From the seventh financial year, you can make one withdrawal a year of up to 50% of the lower of the balance at the end of the fourth preceding year or the preceding year. Full closure before maturity is allowed only after five years, for serious illness, higher education or a change of residency, with 1% less interest.

What is the last date to deposit in PPF to earn interest for the month?

Deposit on or before the 5th of the month. PPF interest is calculated on the lowest balance between the 5th and the last day of each month, so money that arrives on the 6th earns nothing for that month. To earn the full year's interest, deposit your annual amount by 5 April.

Is PPF interest taxable?

No. PPF interest and the maturity amount are tax free under both the old and the new tax regimes. What the new regime removes is the deduction for your deposit, which under the old regime qualifies within the Rs. 1.5 lakh Section 80C limit.

Can I extend my PPF account after 15 years?

Yes, in blocks of 5 years, any number of times. To keep depositing, submit Form 4 within one year of maturity. Otherwise the account continues without deposits and still earns interest on the existing balance.

Can an NRI open a PPF account?

NRIs cannot open a new PPF account. An account opened while resident can generally continue till maturity on a non-repatriation basis, but check the current rules with your bank before assuming anything.

What happens if I miss a yearly deposit?

The account becomes discontinued. You can revive it by paying a small penalty along with the missed minimum deposit of Rs. 500 for each missed year. It is better to set a yearly reminder than to deal with revival.

Conclusion

PPF remains one of the best safe, tax free savings options available in India. The combination of government backing, 7.1% interest, and full tax exemption at every stage is hard to match for a risk free product. The rules reward two behaviours: depositing the maximum you can afford, and depositing early in April. Use the calculator above to test your own deposit amount and tenure, and remember that the real power of PPF shows up in the later years, when compounding does most of the work. Open the account, set a yearly April reminder, and let 15 years of quiet compounding build a tax free corpus you can rely on.