Calculate PPF maturity amount at 7.1% interest for 15 to 30 years. Includes EEE tax savings, partial withdrawal, loan rules and bank comparison | Calculator4U
Calculate returns for Public Provident Fund scheme.
The PPF Calculator helps you estimate the maturity value, interest earnings, and wealth accumulation journey of your Public Provident Fund account. Launched in 1968 by the Government of India and administered by the Ministry of Finance, PPF remains one of the country's most trusted long-term savings instruments. It offers a rare combination of an absolute sovereign guarantee, attractive tax-free interest rates (7.1% p.a. as of 2026), and complete tax exemption under the EEE (Exempt-Exempt-Exempt) category with zero market risk.
Whether you're planning for retirement, your child's education, or building a tax-free corpus, PPF provides highly disciplined wealth accumulation. The true power of compounding becomes apparent across different time horizons: investing the maximum limit of ₹1.5 lakh annually at the current 7.1% rate yields approximately ₹40.68 lakh at the end of the mandatory 15-year maturity period. By choosing to extend the account in 5-year blocks up to 30 years, the exact same annual contribution grows your final corpus to over ₹1.54 crore—more than doubling your total wealth simply by letting the interest compound for an additional 15 years.
PPF accounts can be opened at any post office or authorized commercial bank (including SBI, HDFC Bank, ICICI Bank, Axis Bank, Bank of Baroda, PNB, and Kotak Mahindra Bank). Digital account opening is widely available through authorized internet banking platforms or mobile apps with standard documentation like a PAN card, bank details, and identity verification.
While the account provides unmatched security, it operates under strict regulatory frameworks. A PPF account can accept a maximum of 12 deposits per financial year (either as a lump sum or in monthly installments) up to an annual cap of ₹1.5 lakh. Any deposits made above this ₹1.5 lakh limit will earn no interest and are ineligible for tax deductions. Parents can also open a separate account for a minor child; however, the combined deposits across the parent's account and the minor's account must not cross the ₹1.5 lakh threshold per financial year. Furthermore, Non-Resident Indians (NRIs) are prohibited from opening new accounts. If an individual becomes an NRI after opening an account as a resident, the existing account may continue running until its initial 15-year maturity on a non-repatriation basis, but it cannot be extended further.
A = Maturity Amount (total corpus at the end of the tenure)
P = Annual investment amount (₹500 to ₹1.5 lakh)
r = Annual interest rate (currently 7.1% = 0.071)
n = Investment tenure in years (minimum 15 years)
Note: This formula assumes equal annual investments made at the start of each financial year. For monthly deposits, the calculation tracks the lowest ongoing balance between the 5th and the end of each calendar month.
Understand how PPF stacks up against other popular tax-saving and long-term investment options under current financial guidelines:
| Feature | PPF | Bank FD (Tax Saver) | ELSS Mutual Funds | NPS (Tier 1) | EPF |
|---|---|---|---|---|---|
| Current Returns | 7.1% (fixed quarterly) | 6.5-7.5% (fixed) | 12-15% (market-linked) | 9-12% (market-linked) | 8.25% (fixed) |
| Lock-in Period | 15 years (extendable) | 5 years | 3 years | Till age 60 | Till retirement |
| Tax on Investment | Exempt (80C) | Exempt (80C) | Exempt (80C) | Exempt (80C + 80CCD) | Exempt (80C) |
| Tax on Interest/Growth | Exempt | Taxable | LTCG rules apply | Exempt | Exempt* |
| Tax on Maturity | Exempt | Principal exempt | LTCG applies | 60% exempt, 40% annuity | Exempt (if >5 yrs) |
| Risk Level | Zero (sovereign guarantee) | Very Low | High (equity risk) | Medium | Zero |
| Max Annual Limit | ₹1.5 lakh | No limit | No limit | No limit | Capped via payroll rules |
| Best For | Risk-averse, long-term wealth | Short lock-in tax needs | Young, aggressive growth | Additional pension corpus | Salaried individuals |
*EPF interest on employee contributions above ₹2.5 lakh per year is taxable. ELSS = Equity Linked Savings Scheme. NPS = National Pension System.
Key structural mandates governing PPF accounts as per Ministry of Finance guidelines:
| Rule Component | Official Policy Details |
|---|---|
| Minimum Deposit | ₹500 per financial year (compulsory to keep the account active) |
| Maximum Deposit | ₹1,50,000 per financial year (excess amounts are rejected or yield zero interest) |
| Deposit Frequency | Maximum of 12 distinct deposits or monthly schedule per financial year |
| Account Tenure | 15 years from the end of the opening FY (extendable indefinitely in 5-year blocks) |
| Interest Calculation | Computed monthly on the lowest balance between the 5th and the end of the month; officially credited annually on March 31st |
| Partial Withdrawal | Available from the 7th financial year onwards; capped at a maximum of 50% of the balance at the end of the 4th preceding year or the immediate preceding year, whichever is lower |
| Loan Facility | Accessible from the 3rd to the 6th financial year; max loan size is 25% of the balance at the end of the 2nd preceding year; loan interest rate = active PPF rate + 1% |
| Premature Closure | Allowed after completing 5 years for specific grounds (e.g., life-threatening medical emergencies or higher education expenses); carries a 1% interest rate penalty on all historical accruals |
| Nomination | Mandatory process; updates allowed anytime; nominee receives the entire balance fully tax-free in the event of account holder's death |
❌ Depositing money late in the calendar month: Because PPF interest is calculated exclusively on the lowest balance held between the 5th and the final day of each month, timing is vital. Depositing funds on April 6th means that money earns zero interest for the month of April. Over a ₹1.5 lakh annual contribution, this single day's delay results in a loss of roughly ₹887. Fix: Always complete lump-sum transfers before April 5th of each financial year, or clear monthly electronic transfers before the 5th of each month.
❌ Failing to maximize the ₹1.5 lakh limit: Leaving your annual allocations short means missing out on top-tier guaranteed tax sheltering. Fix: Treat your PPF account as your primary low-risk debt vehicle and max it out ahead of other, taxable fixed income alternatives.
❌ Unwittingly opening multiple accounts: Regulations permit exactly one personal PPF account per adult citizen (plus one additional account as a guardian for a minor child). Opening extra accounts results in frozen assets and zero interest payouts on the excess balances. Fix: Consolidate any erroneous duplicate accounts through institutional banking transfer channels immediately.
❌ Forgetting the minimum annual entry limit: Neglecting to deposit at least ₹500 across an entire financial year forces the account into a discontinued state. Resolving this issue requires visiting your branch, filing an active declaration, and paying a penalty of ₹50 per missed year alongside the missing minimum contributions. Fix: Establish a recurring calendar reminder or clear standing instruction through your primary savings account.
❌ Accessing premature withdrawals without planning: Making premature partial withdrawals breaks down your underlying principal base and undercuts your compound growth loop. Fix: Leave your PPF funds completely untouched; capitalize on the low-cost loan facility during years 3 to 6 if you face a short-term cash crunch.
❌ Closing the account instantly at year 15: Many investors rush to withdraw their entire lump sum at completion. However, extending the account for another 5 to 10 years with continuous contributions can vastly increase your tax-free retirement wealth. Fix: Evaluate your true liquidity requirements before final closure to maximize your extension opportunities.
PPF interest rates are evaluated and declared quarterly by the Ministry of Finance based on active government security (G-Sec) yields. Review the historical rate trends below:
| Review Period | Interest Rate (p.a.) | Macro Context Notes |
|---|---|---|
| April 2020 - Present (2026) | 7.1% | Maintained rate stability for 6 consecutive years |
| April 2019 - March 2020 | 7.9% | Pre-pandemic fiscal baseline |
| October 2018 - March 2019 | 8.0% | Brief interest rate adjustment window |
| April 2017 - September 2018 | 7.8% | Post-demonetization liquidity cycle |
| April 2016 - March 2017 | 8.1% | Structural macroeconomic rate reductions begin |
| April 2013 - March 2016 | 8.7% | Highly stable three-year high-yield sequence |
| December 2011 - March 2013 | 8.8% | Peak modern performance era |
| March 2003 - November 2011 | 8.0% | Extended multi-year flat baseline sequence |
| March 2002 - February 2003 | 9.0% | Transition and liberalisation phase |
| March 2001 - February 2002 | 9.5% | Initial high-rate cooling phase |
| 1986 - 2000 | 12.0% | The historic double-digit growth era of PPF |
Even during global interest rate cuts, the unique EEE fiscal status allows PPF to deliver post-tax real returns that easily outperform bank fixed deposits and inflation over long periods.
Sources & Disclaimer: The PPF scheme is formally governed by the Public Provident Fund Act and modern rules established by the National Savings Institute and the Reserve Bank of India. Regular tax deductions fall strictly under Section 80C of the Income Tax Act, 1961. This online calculator functions primarily as an educational and mathematical estimation tool. Realized long-term yields can modulate depending on the absolute timing of your deposits and quarterly interest changes implemented by the Government of India. Always cross-reference your long-term allocations with a certified independent financial consultant before finalizing asset distributions.
PPF is one of India's safest government-backed long-term savings schemes with 7.1% per annum interest for Q4 FY 2025-26, EEE tax benefits, and a 15-year lock-in extendable in 5-year blocks. You deposit ₹500 to ₹1.5 lakh per year (up to 12 instalments). Interest is calculated on the minimum balance between the 5th and last day of each month, and credited annually on March 31st. The scheme is managed by the Ministry of Finance and available at post offices and authorised banks. PPF is ideal for retirement corpus building, children's education funds, and tax saving under Section 80C — all with zero market risk and sovereign guarantee.
The PPF interest rate for FY 2025-26 is 7.1% per annum for all four quarters, stable since April 2020 when it was reduced from 7.9%. Maturity projections for ₹1.5 lakh per year at 7.1%: 15 years: total investment ₹22.5 lakh, maturity amount ≈ ₹40.68 lakh, interest earned ≈ ₹18.18 lakh. 20 years: total investment ₹30 lakh, maturity amount ≈ ₹66.58 lakh, interest earned ≈ ₹36.58 lakh. 30 years: total investment ₹45 lakh, maturity amount exceeds ₹1 crore — demonstrating that extending from 15 to 30 years more than doubles the corpus with the same annual contribution.
PPF enjoys EEE (Exempt-Exempt-Exempt) tax treatment — the best available in India. (1) Investment Exempt: ₹1.5 lakh annual contribution qualifies for Section 80C deduction. Tax saved per year: ₹45,000 at 30% bracket, ₹31,200 at 20% bracket. (2) Interest Exempt: 7.1% annual interest is fully tax-free — unlike FD interest which is taxable as income. At 30% tax bracket, a taxable FD would need to offer 7.1% ÷ 0.70 = 10.14% pre-tax return to equal PPF's effective return. (3) Maturity Exempt: entire corpus is 100% tax-free. Over 15 years investing ₹1.5 lakh/year (30% bracket): total tax saved on contributions ≈ ₹6.75 lakh, interest earned tax-free ≈ ₹18 lakh. Total EEE advantage over a comparable taxable instrument ≈ ₹14-16 lakh.
Yes — parents or guardians can open a PPF account on behalf of a minor child. The child's account earns the same 7.1% tax-free interest with sovereign guarantee. Key rule: the combined annual deposit across the parent's own PPF account and the minor child's PPF account cannot exceed ₹1.5 lakh per year. Deposits beyond ₹1.5 lakh combined earn no interest. The minor's account matures 15 years from the date of opening. Once the child turns 18, the account can be transferred to their name. Minor PPF accounts are popular for children's education or marriage funds — starting a ₹50,000/year PPF for a newborn grows to approximately ₹13.5 lakh by age 15 at 7.1% interest, entirely tax-free.
PPF accounts can be opened online through these methods. SBI YONO app: existing SBI customers can open PPF through the YONO app → Investments → PPF → Open Account. Requires SBI savings account, Aadhaar-linked mobile, and PAN. Post Office (IPPB): download the India Post Payments Bank (IPPB) app → open Post Office PPF account digitally. Authorised bank net banking: HDFC Bank, ICICI Bank, Axis Bank, Kotak Bank, PNB, Bank of Baroda all allow online PPF opening through their internet banking portals. Required documents for online opening: Aadhaar (linked to mobile), PAN card, existing savings account with the bank, passport photo, and nominee details. PPF accounts are available through post offices and nationalised banks across India — private sector banks including HDFC and ICICI are also authorised. Account opening takes 10-15 minutes online.
Partial withdrawal is allowed from the 7th financial year onwards (after completing 6 full years). Maximum withdrawal = 50% of the balance at the end of the 4th preceding financial year OR 50% of the balance at the end of the immediately preceding financial year — whichever is lower. Only one partial withdrawal is allowed per financial year. Example: PPF account opened April 2020 (FY 2020-21). First withdrawal possible: FY 2027-28 (7th year). Balance at end of FY 2023-24 (4th preceding year) = ₹6 lakh. Balance at end of FY 2026-27 (immediately preceding year) = ₹10 lakh. Max withdrawal = 50% of ₹6 lakh = ₹3 lakh (lower figure used). Partial withdrawal is tax-free. Avoid unnecessary withdrawals — every rupee withdrawn reduces your compounding base significantly for the remaining years.
NRIs cannot open a new PPF account. If you were a resident Indian when you opened your PPF account and subsequently became an NRI, your existing account can continue until its original maturity — but you cannot make fresh contributions from the date your NRI status is established. PPF is available only for resident Indians. At maturity, NRIs can close the account and repatriate the tax-free proceeds. Extending the PPF account after maturity is not permitted for NRIs. NRIs seeking a PPF-equivalent safe, tax-free investment should consider NRE Fixed Deposits (interest fully exempt from Indian tax for NRIs) or FCNR deposits as alternatives. OCI (Overseas Citizen of India) holders who are NRIs are also not eligible to open new PPF accounts — the restriction applies based on residential status, not citizenship.