PPF Calculator

PPF maturity, total interest and 15-year growth at the current 7.1% rate.

Yearly deposit

₹1,50,000

Time period

Interest rate

PPF Calculator

Maturity value₹40,68,209

Total invested₹22,50,000
Interest earned₹18,18,209
Maturity value₹40,68,209

Invested vs interest

Invested ₹22,50,000
Interest ₹18,18,209

How PPF works

The Public Provident Fund is a 15-year government-backed savings scheme, and one of the very few investments in India with EEE status: the money you put in qualifies for a deduction under Section 80C, the interest is exempt, and the maturity amount is entirely tax-free. The government resets the rate every quarter — it is 7.1% for the current quarter — and interest is compounded once a year.

You can pay in anywhere from ₹500 to ₹1,50,000 in a financial year, in one shot or in instalments. Each month’s interest is worked out on the lowest balance between the 5th and the last day, so depositing before the 5th — and ideally before 5 April for the year — earns you the most. The full balance stays locked for 15 years, which is exactly what makes PPF a disciplined long-horizon builder.

M = A × [((1 + r)ⁿ − 1) ÷ r] × (1 + r)

where A = amount deposited each year; r = annual interest rate as a decimal (7.1% = 0.071); n = number of years (minimum 15); the final × (1 + r) reflects deposits made early in the year earning a full year of interest

PPF maturity for ₹1.5 lakh a year at 7.1%

Paying in the full ₹1,50,000 every year at today’s 7.1% rate turns ₹22,50,000 of your own contributions over 15 years into about ₹40,69,255 — roughly ₹18,19,255 of that being tax-free interest. Growth is gentle at first and then striking near the end, because the interest itself begins earning interest. The milestones below show how the balance builds.

PPF: ₹1,50,000 deposited each year at 7.1%
After 5 years	₹9,25,701
After 10 years	₹22,30,125
After 15 years (maturity)	₹40,69,255

Extending PPF after maturity

When the 15 years are up you have three choices: withdraw the whole amount tax-free, leave it untouched and keep earning interest without fresh deposits, or extend the account in blocks of 5 years. To extend with fresh contributions you must tell the bank or post office within a year of maturity using the prescribed form; extend without contributions and you can still make one withdrawal each year.

Extending is a quiet way to build a large tax-free corpus for retirement. A 25-year run of the full annual deposit compounds into far more than the 15-year figure above, with every rupee of it still exempt from tax.

PPF vs ELSS vs FD for tax saving

All three can save tax under Section 80C, but they are very different instruments. PPF is government-guaranteed, tax-free at every stage, and locked for 15 years. An ELSS mutual fund has the shortest lock-in at just 3 years and can earn more through equities, but its returns swing with the market and gains above ₹1,25,000 a year are taxed. A five-year tax-saver FD gives a fixed return, but that interest is fully taxable at your slab.

A common approach is to treat PPF as the safe, tax-free core of a long-term plan and add an ELSS beside it for growth, rather than picking one and dropping the other.

Frequently asked questions

Is PPF interest taxable?

No. PPF carries EEE status, so the annual interest is completely exempt and the maturity amount is tax-free. You pay nothing on what the account earns, which is what makes its 7.1% far more valuable than the same rate on a taxable FD.

Can I withdraw from PPF before 15 years?

The account is locked for 15 years, but there are two escape valves. You can take a loan against the balance between years 3 and 6, and from year 7 onward you may make one partial withdrawal each year, capped at a share of your balance. A full premature closure is allowed only in specific cases such as serious illness or higher education.

What is the minimum and maximum I can deposit in PPF?

You must put in at least ₹500 in a financial year to keep the account active, and you can contribute up to ₹1,50,000. Anything beyond ₹1,50,000 in a year earns no interest and gets no tax benefit.

What happens when my PPF account matures?

At 15 years you can withdraw the entire balance tax-free, retain it and keep earning interest with no new deposits, or extend it in 5-year blocks. To extend with fresh deposits you must submit the extension form within one year of maturity.

How is PPF interest calculated each month?

Interest is figured on the lowest balance in the account between the 5th and the last day of each month, then credited once a year at the end of March. Depositing before the 5th — and early in the financial year — ensures that money earns for the full period.

Guides that use this calculator

Old vs new tax regime: how to actually chooseWith no deductions beyond the standard one, the new regime wins at every income level — by ₹1.75 lakh a year at a ₹16 lakh salary. The old regime only earns its keep past a deduction threshold. Here is where that threshold sits and how to check your own.
FD laddering: lock rates without locking yourself outSplitting one deposit into several maturities solves the two problems every FD investor faces — needing money mid-tenure and reinvesting everything at whatever rate prevails on one arbitrary day. How to build a ladder, with the premature-withdrawal math.