PPF Calculator - Public Provident Fund Calculator 2026
Calculate your PPF maturity value with accurate interest calculations and tax-free growth projections. Plan your retirement savings with EEE tax benefits.
PPF Maturity Results
PPF Growth Over Time
🧮 What is a PPF Calculator?
A PPF (Public Provident Fund) Calculator is an essential financial planning tool that helps you estimate the maturity value of your PPF investment. It calculates the interest earned and final corpus based on your yearly deposits, current interest rate, and investment tenure. PPF is one of India's most popular long-term savings schemes, backed by the Government of India and offering guaranteed returns with EEE (Exempt-Exempt-Exempt) tax benefits.
Our advanced PPF calculator provides instant calculations with yearly breakdown, showing exactly how your small yearly deposits grow into a substantial retirement corpus through the power of compounding. Whether you're planning for retirement, children's education, or long-term wealth creation, this tool helps you make informed financial decisions.
💰 Why Choose PPF?
- Sovereign Guarantee: Backed by the Government of India, PPF offers 100% safety with zero credit risk. Your money is completely secure.
- Triple Tax Benefits (EEE): Deposits qualify for Section 80C deduction (up to ₹1.5L), interest earned is tax-free, and maturity proceeds are completely tax-free. This is the best tax treatment available in India.
- Attractive Interest Rate: Current rate of 7.1% p.a. (compounded annually) is higher than most fixed deposits and completely tax-free, making the effective return even higher.
- Long-term Compounding: With a 15-year lock-in period (extendable in blocks of 5 years), your money gets maximum compounding benefit, potentially doubling every 10 years at current rates.
- Flexible Deposits: Invest anywhere from ₹500 to ₹1,50,000 per year in one lump sum or up to 12 installments. No pressure to invest the maximum every year.
- Partial Withdrawal: After completing 7 years, you can make partial withdrawals (up to 50% of balance at end of 4th year) for emergencies, providing liquidity when needed.
- Loan Facility: You can take a loan against your PPF balance from the 3rd to 6th year at just 2% over the prevailing PPF rate, providing emergency funding without breaking your investment.
🧮 PPF Interest Calculation Formula
PPF interest is calculated on the minimum balance between the 5th and last day of each month. This is why financial experts recommend depositing your PPF contribution before the 5th of the month to maximize interest earnings.
Annual Compound Interest Formula:
A = P(1 + r)^n + C[(1 + r)^n - 1]/r
Where:
- A = Maturity Amount
- P = Existing Balance (if any)
- C = Yearly Contribution
- r = Annual Interest Rate (currently 7.1% = 0.071)
- n = Number of Years (minimum 15)
💡 Real Example: The Power of PPF Compounding
Let's see how a disciplined PPF investor can build substantial wealth:
Scenario: Maximum PPF Investment
- Yearly Deposit: ₹1,50,000 (maximum allowed)
- Interest Rate: 7.1% p.a. (current rate)
- Tenure: 15 years (minimum lock-in)
- Total Invested: ₹22,50,000 (15 ₹ ₹1,50,000)
- Maturity Value: ₹40,68,209 (approx)
- Interest Earned: ₹18,18,209 (completely tax-free!)
- Effective Return: ~7.1% CAGR (tax-free = 9.8% pre-tax for 30% bracket)
Key Insight: By investing the maximum ₹1.5L annually for 15 years, you earn over ₹18 Lakh in tax-free interest! For someone in the 30% tax bracket, this is equivalent to earning 9.8% pre-tax return₹better than most fixed deposits and debt funds.
Scenario: Extended PPF (30 Years)
- Yearly Deposit: ₹1,00,000
- Interest Rate: 7.1% p.a.
- Initial 15 years: Continue deposits (₹15L total)
- Next 15 years: Extend without deposits (let it grow)
- Maturity after 30 years: ₹51,64,895 (approx)
- Total Invested: ₹15,00,000
- Interest Earned: ₹36,64,895 (tax-free!)
Key Insight: Your ₹15L investment grows to ₹51.6L over 30 years₹a 3.44x multiplier! By extending PPF and letting compounding work its magic, you can build a solid retirement corpus.
📊 Smart PPF Investment Strategies
- Deposit Before 5th of Month: Since PPF interest is calculated on minimum balance between 5th and month-end, depositing before the 5th ensures you earn interest for that entire month. This can add thousands to your maturity value over 15 years.
- Annual Lump Sum vs Monthly: Making one annual deposit at the start of the financial year (April) gives you the maximum compounding benefit compared to monthly deposits. The difference can be ₹30,000-50,000 extra over 15 years.
- Maximize Section 80C: PPF deposits qualify for ₹1.5L tax deduction under Section 80C. If you're in the 30% bracket, this saves ₹46,800 in taxes annually (₹1.5L ₹ 31.2% including cess). That's a 31.2% instant return!
- Open PPF for Minors: Parents/guardians can open PPF accounts for their children. Starting early gives them a massive 20-30 year compounding advantage, potentially creating a ₹50L+ education or marriage fund.
- Extend Strategically: After 15 years, you have three options: (a) close and withdraw, (b) extend for 5 years with deposits, or (c) extend without deposits. If you don't need the money, extending without deposits lets your corpus keep growing tax-free.
- Avoid Missing Years: PPF accounts become "discontinued" if you don't deposit the minimum ₹500 in a year. Reactivating requires paying ₹50 penalty per year plus the minimum contribution. Stay regular!
- Diversify Within Family: If you've maxed out your PPF, consider opening accounts for your spouse and children. A family of 4 can invest up to ₹6L annually in PPF (₹1.5L each), creating a ₹1.5 Cr+ tax-free retirement corpus.
- Use for Retirement Planning: PPF is perfect as the debt portion of your retirement portfolio. While equity mutual funds provide growth, PPF provides stability, safety, and guaranteed tax-free returns.
📊 PPF vs Other Investment Options
| Feature | PPF | Bank FD | EPF | NPS |
|---|---|---|---|---|
| Interest Rate | 7.1% (tax-free) | 6-7% (taxable) | 8.15% (tax-free) | 9-12% (60% taxable) |
| Tax on Interest | Nil | Yes (slab rate) | Nil | Yes (on 40%) |
| Tax on Maturity | Nil | Nil | Nil | Yes (on 40%) |
| Lock-in Period | 15 years | 5 years (80C) | Till retirement | Till 60 years |
| Guaranteed Returns | Yes | Yes | Yes | No (market-linked) |
| Liquidity | Partial (after 7 yrs) | Low (penalty) | Very Low | Partial (after 3 yrs) |
📋 PPF Account Rules & Limits (2026)
- Minimum Deposit: ₹500 per year (failure leads to account discontinuation)
- Maximum Deposit: ₹1,50,000 per year (excess amount earns no interest and is returned)
- Lock-in Period: 15 years (mandatory from date of opening)
- Extension: Unlimited blocks of 5 years (with or without contributions)
- Interest Rate: Set quarterly by Government (currently 7.1% for Q4 FY2025-26)
- Accounts Allowed: One per individual (additional for minors)
- Withdrawal: Partial withdrawal allowed after 7 years (up to 50% of balance at end of 4th year)
- Loan Facility: Available from 3rd to 6th year (up to 25% of balance 2 years ago)
- Transfer: Can transfer account from one post office to another, or post office to bank
- Nomination: Allowed (strongly recommended for smooth succession)
❓ Frequently Asked Questions (FAQs)
The current PPF interest rate is 7.1% per annum (as of Q4 FY2025-26), compounded annually. The Government of India reviews and announces PPF rates every quarter. Historically, PPF rates have ranged from 7.1% to 8.7% over the past decade. The interest is completely tax-free, which makes the effective post-tax return much higher compared to taxable investments like fixed deposits. For someone in the 30% tax bracket, a 7.1% tax-free return is equivalent to earning approximately 10.14% pre-tax return.
Partial withdrawals are allowed after completing 7 financial years (effectively from the 8th year). You can withdraw up to 50% of the balance at the end of the 4th preceding year. For example, if you're in the 8th year, you can withdraw 50% of the balance at the end of the 4th year. Only one withdrawal is permitted per financial year. For emergencies before 7 years, you can take a loan against PPF from the 3rd to 6th year. Premature closure is only allowed in exceptional circumstances like serious medical conditions or higher education, and you'll get lower interest (approximately 1% less than the regular rate).
Annual lump sum investment at the start of the financial year is better for maximizing returns. Here's why: PPF interest is calculated on the minimum balance between the 5th and last day of each month. If you deposit ₹1,50,000 in April, you earn interest on the full amount for 12 months. If you deposit ₹12,500 monthly, you earn less interest initially. Over 15 years, the difference can be ₹30,000-50,000 extra in your maturity value. Best practice: Deposit the entire amount (or maximum you can afford) before April 5th to get interest for the full year. If you can't afford lump sum, at least deposit before the 5th of each month to maximize that month's interest.
After 15 years, you have three options: (1) Withdraw and close: You can withdraw the entire maturity amount (principal + interest) which is completely tax-free. (2) Extend with contributions: You can extend the account in blocks of 5 years and continue making deposits (?500 to ₹1,50,000 annually). This continues the 80C tax benefit and interest accumulation. (3) Extend without contributions: You can let the existing balance grow without making new deposits. You'll continue earning tax-free interest, but won't get new 80C deductions. Many people choose option 3 to let their corpus keep compounding tax-free. You need to submit Form H for extension within 1 year of maturity; otherwise, the account automatically extends without contribution facility.
Yes, parents or legal guardians can open PPF accounts for minors. This is a fantastic way to build a long-term corpus for your child's education or marriage. Key points: The combined contribution in your account and minor's account cannot exceed ₹1,50,000 annually for claiming 80C benefit (though you can deposit more in the minor's account). The account will mature when the child is an adult (15 years from opening), creating a substantial corpus. For example, investing ₹50,000 annually for 15 years at 7.1% will grow to approximately ₹13.5 Lakh. Upon reaching 18, the child can operate the account themselves. This is one of the best gifts you can give your child₹a strong financial foundation with the power of early compounding.
PPF offers EEE (Exempt-Exempt-Exempt) tax status₹the best tax treatment in India. (E1) Exempt on Investment: Deposits up to ₹1.5L qualify for deduction under Section 80C, saving up to ₹46,800 in taxes (for 30% bracket). (E2) Exempt on Interest: All interest earned is completely tax-free, unlike FDs where interest is taxable at slab rate. (E3) Exempt on Maturity: The entire maturity amount (principal + interest) is tax-free under Section 10. Compare this with NPS where 60% is tax-free, 40% is taxable. Or FDs where interest is fully taxable. For someone in 30% tax bracket, PPF's 7.1% tax-free return is equivalent to earning approximately 10.14% pre-tax return from taxable instruments. This makes PPF one of the most tax-efficient investment options in India.
PPF (Public Provident Fund) is voluntary and available to all residents, while EPF (Employee Provident Fund) is mandatory for salaried employees. Key differences: Eligibility: PPF is for everyone (self-employed, professionals, anyone); EPF is only for salaried employees. Contribution: PPF is entirely your choice (?500-₹1.5L annually); EPF deducts 12% of your basic salary automatically. Interest Rate: EPF currently offers 8.15% vs PPF's 7.1%. Liquidity: PPF allows partial withdrawal after 7 years; EPF is locked till retirement (with some exceptions). Account Control: PPF is in your name at post office/bank; EPF is managed by employer/EPFO. Both offer EEE tax benefits and are excellent for retirement planning. Ideally, salaried employees should maximize both EPF and PPF for a strong retirement corpus.