PPF Calculator

PPF Calculator: Estimate Your Public Provident Fund Maturity

The Public Provident Fund (PPF) is a government-backed, long-term savings scheme that combines guaranteed returns with one of the most generous tax breaks available to Indian savers. This calculator helps you project how much your yearly deposits will grow into by the end of the mandatory 15-year term, so you can plan a retirement corpus, a child's future, or simply a low-risk cushion inside your portfolio.

Who it is for

PPF suits conservative savers who want assured, tax-free growth and do not need the money for at least 15 years. It is popular with salaried employees topping up their retirement savings beyond EPF, self-employed professionals who have no employer pension, and parents opening an account in a minor child's name. Because the return is fixed by the government and the capital is fully protected, it is ideal for money you cannot afford to risk in equities.

The formula in words

PPF interest is compounded annually. If you deposit the same amount at the start of each year, the maturity value is the future value of an annuity-due:

Maturity = Annual Deposit × [ ((1 + r)ⁿ − 1) ÷ r ] × (1 + r)

Here r is the annual interest rate as a decimal (for example 7.1% = 0.071) and n is the number of years (15 for a fresh account). In plain language, each year's deposit earns compound interest for every remaining year until maturity, and the calculator adds up all these grown deposits. Note that within a year, PPF interest is actually credited on the lowest balance between the 5th and the last day of each month — which is why depositing before the 5th of April each year squeezes out the most interest.

A fully worked example

Suppose you invest the maximum Rs. 1,50,000 every year at the start of the financial year, at a rate of 7.1% (as of FY 2025-26), for the full 15 years.

• Total amount you deposit over 15 years: Rs. 1,50,000 × 15 = Rs. 22,50,000.
• Growth factor: (1.071)¹⁵ works out to about 2.798.
• Annuity factor: (2.798 − 1) ÷ 0.071 = about 25.32.
• Multiply by the deposit: Rs. 1,50,000 × 25.32 = about Rs. 37,98,000.
• Adjust for start-of-year deposits (× 1.071): about Rs. 40,68,000.

So your Rs. 22,50,000 of contributions grow to roughly Rs. 40.68 lakh at maturity — meaning about Rs. 18.18 lakh is tax-free interest. Because the entire maturity amount is exempt, you keep every rupee of that gain. A bank fixed deposit at the same 7.1% would hand a chunk of its interest to income tax each year, so PPF's tax-free structure quietly beats an equal-rate FD.

Eligibility, rules and edge cases

• Who can open: Any resident individual can hold one PPF account, and a guardian may open one for a minor. Hindu Undivided Families (HUFs) and NRIs cannot open new accounts, though an NRI may continue an account opened while resident until its original 15-year maturity, without extension.
• Deposit limits: Minimum Rs. 500 and maximum Rs. 1,50,000 per financial year, in one lump sum or across a number of instalments. Deposits above the ceiling earn no interest and are refunded.
• Lock-in and extension: The base term is 15 years. After that you can extend in blocks of 5 years, with or without fresh contributions, any number of times.
• Partial withdrawal and loans: Partial withdrawals are allowed from the 7th financial year, subject to limits; a loan against the balance is available from the 3rd up to the 6th financial year.
• Inactive accounts: Missing the Rs. 500 minimum in a year makes the account dormant; you revive it by paying a small penalty of Rs. 50 per defaulted year plus the arrears.

Tax treatment

PPF enjoys the coveted EEE (Exempt-Exempt-Exempt) status. Contributions up to Rs. 1,50,000 qualify for deduction under Section 80C (available under the old tax regime), the interest earned each year is fully tax-free, and the maturity proceeds are exempt as well. This triple exemption is what makes PPF's effective return far higher than a taxable fixed deposit paying the same headline rate. Do note that under the new tax regime the 80C deduction is not available, but the interest and maturity remain tax-free regardless of the regime you choose.

Tips and common mistakes

• Deposit before the 5th: Interest is calculated on the minimum balance after the 5th, so an early-April lump sum earns a full year of interest on the whole amount.
• Do not exceed Rs. 1.5 lakh: The ceiling applies jointly across your own account and any account you run as guardian of a minor; the excess earns nothing.
• Never let it lapse: A dormant account cannot take loans or partial withdrawals until it is revived.
• Rate is not fixed for 15 years: The government resets the PPF rate every quarter, so treat any projection as an estimate based on the current rate, not a guarantee.
• Do not treat it as an emergency fund: The 15-year lock-in means this is long-horizon money — pair it with liquid savings for near-term needs.