Tools To India

PPF Calculator

Enter your yearly deposit to see how a Public Provident Fund account builds over its 15-year term at the current notified rate.

Last updated

Rate notified for Quarter ending September 2026

₹1.5 Lakh · Minimum ₹500, maximum ₹1,50,000 in a financial year across all your PPF accounts.

Currently 7.1% p.a., compounded yearly. Notified quarterly by the Ministry of Finance.

The base term is 15 years, extendable in blocks of 5.

The result updates as you type. Nothing you enter is saved, sent to a server or shared.

Maturity amount

₹40,68,209

₹22,50,000 deposited, ₹18,18,209 earned as interest

Deposited versus interest

  • Deposited: ₹22,50,000
  • Interest: ₹18,18,209
Total deposited
₹22,50,000
Total interest
₹18,18,209
Maturity amount
₹40,68,209
Tax on maturityPPF is exempt-exempt-exempt: deposit, interest and maturity are all tax-free.
Nil
  • Assumes the full yearly deposit is made before 5 April, so it earns a full year of interest. Depositing later in the year earns less.
  • Assumes the current rate holds for the whole term. The rate is notified quarterly and does change.

Year-by-year build-up

Year-by-year build-up
YearDepositInterestClosing balance
1₹1,50,000₹10,650₹1,60,650
2₹1,50,000₹22,056₹3,32,706
3₹1,50,000₹34,272₹5,16,978
4₹1,50,000₹47,355₹7,14,334
5₹1,50,000₹61,368₹9,25,701
6₹1,50,000₹76,375₹11,52,076
7₹1,50,000₹92,447₹13,94,524
8₹1,50,000₹1,09,661₹16,54,185
9₹1,50,000₹1,28,097₹19,32,282
10₹1,50,000₹1,47,842₹22,30,124
11₹1,50,000₹1,68,989₹25,49,113
12₹1,50,000₹1,91,637₹28,90,750
13₹1,50,000₹2,15,893₹32,56,643
14₹1,50,000₹2,41,872₹36,48,515
15₹1,50,000₹2,69,695₹40,68,209

How this calculator works

The Public Provident Fund is a fifteen-year government-backed savings scheme with one unusual property: it is exempt at all three stages. The deposit qualifies for section 80C under the old regime, the interest is tax-free, and so is the maturity amount. Very few instruments in India offer that.

Interest is calculated on the lowest balance in the account between the fifth day and the last day of each month, then credited once at the end of the financial year. The practical consequence is that a deposit made on 4 April earns a full year of interest, while the same deposit made on 6 April earns eleven months of it.

The rate is notified quarterly by the Ministry of Finance and applies to the whole balance, not just new deposits. Over a fifteen-year term the rate will change several times, so any projection is an illustration rather than a promise.

The account runs for fifteen full financial years from the year of opening, and can then be extended indefinitely in blocks of five years, with or without further contributions. Extending with contributions is one of the few ways to keep a tax-free compounding pool running for decades.

The formula

Each year

Closing balance = (opening balance + deposit) × (1 + rate)

This assumes the deposit is made before the fifth of April, so it earns interest for the full year. Depositing monthly instead earns slightly less.

Maturity value, depositing the same amount each year

M = P × ((1 + r)ⁿ − 1) ÷ r × (1 + r)

P
Yearly deposit
r
Annual rate as a decimal
n
Number of years

Worked example: ₹1.5 lakh a year at 7.1% for 15 years

Farah deposits the full ₹1,50,000 limit at the start of each financial year for 15 years, at 7.1% p.a., compounded yearly.

Step-by-step calculation for the worked example
Yearly deposit₹1,50,000
Total deposited over 15 years₹22,50,000
Balance at end of year 1₹1,60,650
Balance at end of year 5₹9,26,987
Balance at end of year 10₹22,16,834
Maturity amount at year 15₹40,68,209
Total interest earned₹18,18,209
Tax payable on maturity₹0

Interest accounts for about 45% of the final balance, and none of it is taxed. For someone in the 30% bracket under the old regime, the deposit also saves ₹46,800 in tax each year — which changes the effective return substantially.

Things worth knowing

  • Deposit before 5 April to earn a full year of interest. A deposit made after the fifth of any month earns nothing for that month.
  • The ₹1,50,000 annual limit applies across all your PPF accounts combined, including any you operate for a minor. Depositing more does not earn interest on the excess.
  • Only one PPF account per person is permitted. A second account, if discovered, is normally closed with only the principal returned.
  • A minimum of ₹500 must go in each financial year. Missing it makes the account dormant, and reviving it requires a small penalty plus the arrears for each missed year.
  • Partial withdrawal is allowed from the seventh year, and a loan against the balance between the third and sixth year. Full premature closure is permitted only in specific circumstances such as serious illness or higher education, and reduces the interest rate.
  • The rate is notified quarterly. A fifteen-year projection at today’s rate is a useful illustration, not a guarantee.
  • The section 80C deduction is available only under the old tax regime. Under the new regime the deposit gets no deduction, though the interest and maturity remain tax-free.

Frequently asked questions

Is PPF really completely tax-free?
Yes. It falls in the exempt-exempt-exempt category: the deposit qualifies for section 80C under the old regime, the interest credited each year is not taxed, and the maturity amount is not taxed either. Very few Indian instruments offer that treatment.
When should I deposit to maximise interest?
Before 5 April, in one lump sum. Interest is calculated on the lowest balance between the fifth and the last day of each month, so a deposit made on 4 April earns for all twelve months while one made on 6 April earns for eleven. On the full ₹1.5 lakh limit, that timing is worth several thousand rupees over a fifteen-year term.
Can I withdraw money before 15 years?
Partial withdrawal is allowed from the seventh financial year, subject to a limit based on the balance. A loan against the account is available between the third and sixth year. Complete premature closure is permitted only in defined situations — serious illness of the account holder or family, higher education, or a change of residency status — and comes with a reduction in the interest rate.
What happens after 15 years?
You can withdraw the entire balance tax-free, or extend the account in blocks of five years. Extension can be with or without further contributions; either way the balance keeps earning tax-free interest. Extending without contributions still allows one withdrawal each year.
Can I open a PPF account for my child?
Yes, a parent or guardian can open an account for a minor. However, the ₹1,50,000 annual ceiling applies to the guardian and the minor’s accounts taken together, so it does not double the limit available to the family.
Is PPF better than EPF?
They serve different purposes and most salaried people have both. EPF is linked to employment and includes an employer contribution, which is money you would not otherwise get. PPF is voluntary, available to anyone including the self-employed, and gives you full control of the amount. Neither replaces the other.

Sources

Every figure on this page is traceable to the official source below. If a source has changed since the date shown, please tell us and we will correct it.