Calculate maturity amount and interest earned on your Public Provident Fund (PPF) account. A safe, tax-saving investment option.
Calculate returns for Public Provident Fund scheme.
The PPF Calculator helps you estimate the maturity value and interest earnings on your Public Provident Fund account. Launched in 1968 by the Government of India, PPF remains one of the most trusted long-term savings instruments, offering a rare combination of sovereign guarantee, attractive interest rates (7.1% p.a. as of 2026), and complete tax exemption under the EEE (Exempt-Exempt-Exempt) category.
Whether you're planning for retirement, your child's education, or building a tax-free corpus, PPF provides disciplined wealth accumulation with zero market risk. This calculator shows your projected maturity amount, total interest earned, partial withdrawal eligibility, and estimated tax savings—empowering you to maximize your PPF strategy.
A = Maturity Amount (total corpus at end of 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 year. For monthly deposits, the calculation becomes more complex as interest is computed on the lowest balance between the 5th and end of each month.
Understand how PPF stacks up against other popular tax-saving and long-term investment options:
| Feature | PPF | Bank FD (Tax Saver) | ELSS Mutual Funds | NPS (Tier 1) | EPF |
|---|---|---|---|---|---|
| Current Returns | 7.1% (fixed) | 6.5-7.5% (fixed) | 12-15% (market-linked) | 9-12% (market-linked) | 8.15% (fixed) |
| Lock-in Period | 15 years | 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 >₹1L taxed @10% | Exempt | Exempt* |
| Tax on Maturity | Exempt | Principal exempt | LTCG applies | 60% exempt, 40% annuity | Exempt (if >5 yrs) |
| Risk Level | Zero (sovereign) | Very Low | High (equity) | Medium | Zero |
| Max Annual Limit | ₹1.5 lakh | No limit | No limit | No limit | 12% of salary |
| Best For | Risk-averse, long-term | Short lock-in needs | Young investors | Additional retirement | Salaried employees |
*EPF interest above ₹2.5 lakh/year is taxable from FY 2021-22. ELSS = Equity Linked Savings Scheme. NPS = National Pension System.
Key rules governing PPF accounts as per Ministry of Finance guidelines:
| Rule | Details |
|---|---|
| Minimum Deposit | ₹500 per financial year (required to keep account active) |
| Maximum Deposit | ₹1,50,000 per financial year (deposits above this earn no interest) |
| Deposit Frequency | Maximum 12 deposits per year (lump sum or installments) |
| Account Tenure | 15 years from end of FY of opening (extendable in 5-year blocks) |
| Interest Calculation | Monthly on lowest balance between 5th and end of month; credited March 31st |
| Partial Withdrawal | From 7th FY onwards; max 50% of balance at end of 4th preceding year |
| Loan Facility | 3rd to 6th FY; max 25% of balance at end of 2nd preceding year; interest = PPF rate + 1% |
| Premature Closure | After 5 years for medical emergency, higher education; 1% interest penalty |
| Nomination | Allowed; can be changed anytime; nominee receives balance tax-free |
❌ Investing late in the financial year: PPF interest is calculated on the minimum balance between the 5th and end of each month. Investing ₹1.5 lakh on March 31st earns zero interest for that year! Fix: Invest before April 5th for maximum interest benefit, or split into monthly deposits before the 5th.
❌ Not maximizing the ₹1.5 lakh annual limit: Many investors deposit only ₹50,000-₹1 lakh, leaving tax savings and compounding benefits on the table. Fix: Prioritize maxing out PPF before other 80C investments for guaranteed, tax-free returns.
❌ Opening multiple PPF accounts: Only one PPF account per person is allowed (plus one for each minor child). Additional accounts earn no interest and can be frozen. Fix: Consolidate if you have multiple accounts; transfer to the primary account.
❌ Forgetting the minimum ₹500 annual deposit: Missing the minimum deposit makes your account inactive/discontinued. Reactivation requires penalty of ₹50/year + minimum deposits for missed years. Fix: Set up an annual reminder or standing instruction.
❌ Withdrawing prematurely without planning: Partial withdrawals reduce your compounding base significantly. Fix: Treat PPF as untouchable; use loan facility (years 3-6) instead of withdrawal if funds needed temporarily.
❌ Ignoring extension options: After 15 years, many close their accounts. But extending with contributions for another 5-10 years can double your corpus with tax-free growth. Fix: Evaluate extension vs. withdrawal based on your financial goals.
PPF rates are set quarterly by the Ministry of Finance. Here's the rate history:
| Period | Interest Rate (p.a.) | Notes |
|---|---|---|
| April 2020 - Present (2026) | 7.1% | Current rate; stable for 6 years |
| April 2019 - March 2020 | 7.9% | Pre-pandemic rate |
| October 2018 - March 2019 | 8.0% | Brief increase |
| April 2017 - September 2018 | 7.8% | Post-demonetization era |
| April 2016 - March 2017 | 8.1% | Rate-cut cycle begins |
| April 2013 - March 2016 | 8.7% | Three-year stable period |
| December 2011 - March 2013 | 8.8% | High-rate period |
| March 2003 - November 2011 | 8.0% | Long stable period |
| March 2002 - February 2003 | 9.0% | Transition period |
| March 2001 - February 2002 | 9.5% | Rate reduction begins |
| 1986 - 2000 | 12.0% | Golden era of PPF |
Rates are revised quarterly based on G-Sec yields. Despite rate reductions, PPF's EEE status makes effective post-tax returns competitive.
Sources & Disclaimer: PPF scheme governed by Public Provident Fund Act, 1968 and administered by the Ministry of Finance, Government of India. Interest rates as per official notifications from the National Savings Institute and Reserve Bank of India. Tax benefits under Section 80C of Income Tax Act, 1961. This calculator provides estimates for educational purposes. Actual returns may vary based on deposit timing and rate revisions. Consult a qualified financial advisor for personalized investment advice. Last updated: January 2026.
Public Provident Fund (PPF) is a government-backed long-term savings scheme introduced in 1968 under the PPF Act. It works by allowing individuals to deposit ₹500 to ₹1.5 lakh annually into a 15-year account that earns compound interest (currently 7.1% p.a.). Interest is calculated monthly on the lowest balance between the 5th and end of month, but credited annually on March 31st. The scheme is managed by the Ministry of Finance and available through post offices and nationalized banks. PPF combines sovereign guarantee (zero default risk), attractive tax-free returns, and forced long-term savings discipline, making it ideal for retirement planning and children's education funds.
As of January 2026, the PPF interest rate is 7.1% per annum, compounded annually. This rate has remained stable since April 2020, when it was reduced from 7.9%. Historically, PPF rates have ranged from a high of 12% (1986-2000) to the current 7.1%. The rate is set quarterly by the Ministry of Finance based on government securities yields and is typically announced on the last day of each quarter. For context: FY 2019-20 had 7.9%, FY 2016-17 saw 8.0%, and FY 2013-14 offered 8.7%. Even at 7.1%, PPF delivers an effective post-tax return of ~10% for those in the 30% tax bracket due to its EEE status.
PPF enjoys EEE (Exempt-Exempt-Exempt) tax status, the most favorable tax treatment in India: (1) EXEMPT on Investment: Contributions up to ₹1.5 lakh/year qualify for Section 80C deduction, reducing taxable income; (2) EXEMPT on Growth: Interest earned (7.1% p.a.) is completely tax-free, unlike FD interest which is taxable; (3) EXEMPT on Maturity: The entire maturity amount—principal plus accumulated interest—is 100% tax-free. For someone in the 30% tax bracket investing ₹1.5 lakh annually, this means ₹45,000 annual tax savings plus tax-free compounding. Over 15 years with ₹1.5 lakh/year investment, you'd save approximately ₹6.75 lakh in taxes while earning ~₹18 lakh in tax-free interest.