PPF Calculator
Calculate your Public Provident Fund (PPF) maturity amount. Enter yearly investment, tenure, and interest rate to see total returns, year-by-year growth, and tax savings.
Investment vs Interest Earned
Maturity Amount
Investment Summary
Tax Benefits (Section 80C)
PPF has EEE status - investment, interest, and maturity all tax-free!
PPF Year-by-Year Growth Projection
Track how your PPF account balance grows each year through compounding:
| Year | Opening Balance | Deposit | Interest | Closing Balance |
|---|
PPF Maturity Comparison: 15, 20, 25, and 30 Year Tenures
See how extending your PPF tenure multiplies your wealth through compounding:
| Tenure | Total Investment | Interest Earned | Maturity Amount |
|---|
Based on yearly investment of ₹1,50,000 at 7.1% interest rate. Actual returns depend on prevailing interest rates.
PPF Account Rules and Limits 2024-25
| Minimum Investment | ₹500 per year |
| Maximum Investment | ₹1,50,000 per year |
| Minimum Tenure | 15 years |
| Extension | 5-year blocks (unlimited extensions) |
| Current Interest Rate | 7.1% p.a. (Q4 FY 2024-25) |
| Interest Compounding | Yearly |
| Tax Benefit | Section 80C (up to ₹1.5 lakh) |
| Interest & Maturity Tax | 100% Tax-Free (EEE status) |
| Partial Withdrawal | Allowed from 7th year (up to 50% of balance) |
| Loan Facility | 3rd to 6th year (up to 25% of 2nd preceding year balance) |
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Public Provident Fund: India's Most Trusted Long-Term Savings Instrument
The Public Provident Fund (PPF) is a government-backed savings scheme that offers guaranteed returns with complete tax exemption. Introduced in 1968 by the Ministry of Finance, PPF remains one of India's most popular investment options for risk-averse investors seeking long-term wealth creation. With its unique EEE (Exempt-Exempt-Exempt) tax status, PPF offers triple tax benefits - your investment qualifies for Section 80C deduction, interest earned is tax-free, and maturity amount is completely exempt from income tax.
PPF Interest Calculation: The Compound Growth Formula
PPF uses the compound interest formula: M = P × [((1 + r)^n - 1) / r], where M is maturity amount, P is yearly deposit, r is annual interest rate, and n is number of years. Interest is calculated on the minimum balance between the 5th and last day of each month, then credited annually on March 31st. This is why depositing before the 5th of each month maximizes your interest - money deposited on April 6th won't earn interest until May 5th. For maximum returns, deposit your yearly ₹1.5 lakh on April 1st or in 12 monthly installments before the 5th of each month.
Why is PPF Considered the Safest Investment in India?
PPF offers sovereign guarantee - your money is backed by the Government of India, making it virtually risk-free. Unlike mutual funds or stocks, PPF doesn't have market-linked returns; the interest rate is fixed quarterly by the government based on government bond yields. While the rate has declined from 8.7% in 2016 to 7.1% currently, it still outperforms most bank fixed deposits on a post-tax basis. For someone in the 30% tax bracket, a 7.1% tax-free PPF return equates to a 10.1% pre-tax FD return. PPF also offers protection from creditors - your PPF balance cannot be attached by courts for debt recovery.
How Does the 15-Year Lock-in Period Impact Your Investment Strategy?
PPF's 15-year lock-in is both a limitation and a feature - it enforces disciplined long-term saving while maximizing compounding benefits. Premature closure is generally not allowed except in specific cases like medical emergencies or higher education (and even then, only after 5 years with penalty). However, partial withdrawals are permitted from the 7th year onwards - you can withdraw up to 50% of the balance at the end of the 4th preceding year. Additionally, loans against PPF balance are available from the 3rd to 6th year at just 1% above the PPF interest rate. For retirement planning combining PPF with other investments, see our retirement calculator.
Extending PPF Beyond 15 Years: Wealth Multiplication Strategy
After the initial 15-year period, you can extend your PPF in unlimited 5-year blocks - with or without fresh deposits. Extending with deposits lets you continue benefiting from tax-free compounding. The comparison table above shows how extending from 15 to 30 years can triple your corpus - ₹40.68 lakh becomes ₹1.54 crore with continued ₹1.5 lakh yearly investment at 7.1%. If you don't need the money, extending is almost always beneficial since you continue earning tax-free interest. You must apply for extension within 1 year of maturity; otherwise, the account continues without deposits but still earns interest.
PPF vs Other Tax-Saving Investments: Making the Right Choice
PPF competes with ELSS mutual funds, NPS, NSC, and tax-saving FDs under Section 80C. ELSS offers potentially higher returns (12-15%) with a shorter 3-year lock-in but carries market risk. NPS offers additional ₹50,000 deduction under 80CCD(1B) but locks your money until retirement with partial taxable withdrawal. Tax-saving FDs have a 5-year lock-in but interest is fully taxable. PPF's unique advantage is guaranteed tax-free returns with sovereign safety - ideal for the debt/fixed-income portion of your portfolio. Most financial advisors recommend maximizing PPF as your safe investment before exploring market-linked options. Compare different investment scenarios with our compound interest calculator or FD calculator.
Last Updated: January 2026 | Reviewed for accuracy