Finance

PPF Calculator

Plan your Public Provident Fund growth with annual deposits and compound interest.

Yearly Deposit (₹)

Interest Rate (%)

Years

Maturity Amount

40,68,209₹

Total Invested₹22,50,000

Interest Earned₹18,18,209

What is the PPF Calculator?

The Public Provident Fund (PPF) is a government-backed savings scheme in India offering 15-year fixed-term investments with guaranteed interest rates (currently 7–8% annually) and complete tax exemption under Section 80C. A PPF calculator projects your maturity amount by applying the compound interest formula specific to PPF's rules: interest is credited annually but compounds, and the calculation respects withdrawal limits after year 7.

How it works

The calculator applies the PPF interest rate to your annual contribution amount over 15 financial years, compounding annually. If you contribute ₹500,000 in year 1 and ₹100,000 every year after, each deposit earns interest from the date of contribution. The tool sums the maturity value of each annual contribution separately to account for staggered deposit timing, then displays the total corpus, total interest earned, and tax implications (nil, as PPF interest is fully exempt).

Maturity Amount = A × [((1 + r)^n - 1) / r] × (1 + r), where A = annual contribution, r = interest rate per annum, n = number of years

The formula is the future value of an annuity (repeated payments). Each year's contribution compounds from the date it was deposited, so contributions made in year 1 earn more interest than those in year 15. The final multiplication by (1 + r) accounts for this timing.

Examples

Input	Result	Notes
Annual contribution: ₹150,000, interest rate: 7.5%, tenure: 15 years	Maturity amount: ≈₹35,16,000 (total interest earned: ≈₹12,66,000)	Shows how consistent mid-range contributions grow significantly; interest nearly doubles your corpus.
Annual contribution: ₹500,000, interest rate: 7.5%, tenure: 15 years	Maturity amount: ≈₹1,17,20,000 (total interest earned: ≈₹42,20,000)	Demonstrates the impact of maximizing annual contributions; hitting the ₹150,000 limit yields the highest maturity.
Annual contribution: ₹50,000, interest rate: 7.5%, tenure: 15 years	Maturity amount: ≈₹11,86,500 (total interest earned: ≈₹2,36,500)	Even modest contributions grow meaningfully; useful for savers starting small.

How to use the PPF Calculator

Enter your annual PPF contribution amount (min. ₹500, max. ₹150,000 per financial year).

Input the current PPF interest rate (check govt.in for the latest; typically 7–8.5%).

Confirm the tenure as 15 years (PPF's lock-in period; you can extend in 5-year blocks after maturity).

View the calculated maturity amount, total interest earned, and year-by-year growth.

Note the tax-free status: no TDS or income tax on PPF interest.

Adjust your contribution amount to explore different scenarios and compare outcomes.

Benefits

Tax-free returns: PPF interest and maturity amount are exempt under Section 80C, saving thousands in taxes over 15 years.

Guaranteed returns: Government-backed fixed rate (no market risk), unlike stocks or mutual funds.

Long-term discipline: The 15-year lock-in encourages sustained savings and wealth building.

Flexible withdrawals: After year 7, you can withdraw up to 50% of the balance; after maturity, extend in 5-year chunks.

Dual benefit: Contributions reduce taxable income (Section 80C), and interest is tax-free.

Simple and transparent: No hidden charges, no bonus complications, just predictable growth.

Tips & common mistakes

Common mistakes

Ignoring the annual contribution limit (₹150,000/year); contributions above this are rejected by post offices.

Forgetting that PPF interest rate changes quarterly; using an outdated rate in calculations.

Assuming you can access all funds after 15 years without extension; actually, maturity requires active renewal to earn further interest.

Not combining PPF with other tax-saving schemes like EPF or NPS; missing opportunities for maximum Section 80C benefit.

Tips

Contribute at the start of the financial year (April 1st) to maximize interest accrual; each rupee earns 12 months of interest.

Use PPF alongside your EPF and NPS to saturate the ₹1.5 lakh Section 80C limit and build a diversified retirement corpus.

Check the latest PPF rate on the RBI or post office website before calculating; rates are reviewed quarterly and can shift significantly.

For spousal or child accounts, remember that minors can have PPF opened by parents; accounts transfer to the minor at age 18.

Frequently asked questions

What is the minimum and maximum annual contribution to PPF?

The minimum is ₹500 per financial year, and the maximum is ₹150,000. You can contribute any amount between these limits in a single or multiple deposits.

Is PPF interest taxable?

No. PPF interest is completely tax-free under Section 80C of the Income Tax Act, and there is no TDS (Tax Deducted at Source) on maturity or interest payouts.

Can I withdraw my PPF before 15 years?

Partial withdrawal (up to 50% of the balance) is allowed after the 7th financial year. Full withdrawal is permitted only at maturity (after 15 years) or partial closure after year 7.

What happens to my PPF after 15 years?

At maturity, your account closes, and you receive the entire corpus plus interest. You can extend the account for consecutive 5-year periods without fresh contributions (interest-only extension) or continue contributing for another 15 years.

How often does the PPF interest rate change?

The PPF interest rate is reviewed and announced quarterly by the Government of India (typically in April, July, October, and January) based on market conditions and bond yields.

Can I open multiple PPF accounts?

No. A single individual can open only one PPF account. However, spouses can each have separate accounts, and parents can open accounts for minor children.