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PPF Calculator – Calculate Public Provident Fund Returns
About this calculator
Use the PPF Calculator – Calculate Public Provident Fund Returns to quickly estimate results. Enter the inputs and review the calculated output below. This tool is for guidance and educational purposes only.
More about this tool
What is PPF?
Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India. It offers guaranteed returns and tax benefits. Minimum investment is Rs. 500 per year, maximum is Rs. 1.5 lakh annually. Account matures after 15 years with optional extension for further 5-year blocks. Investment under Section 80C provides tax deduction. Use this PPF calculator to estimate year-wise bal (truncated)
PPF Interest Rate and Calculation
PPF interest is set by the government every quarter and is currently 7.1% per annum, compounded annually. Interest is calculated on the lowest balance between the 5th and last day of each month, so deposits before the 5th earn interest for that month. Use this calculator to see year-wise interest accrual and maturity value based on your chosen contribution.
PPF Investment Rules
Minimum deposit is Rs. 500 per financial year; maximum is Rs. 1.5 lakh across all PPF accounts (including those opened for a minor). You can deposit in up to 12 installments in a year or in one lump sum. Deposits made between the 1st and 5th of the month earn interest for the full month, so deposit early for maximum return.
Tax Benefits of PPF (EEE Status)
PPF enjoys Exempt-Exempt-Exempt (EEE) status. Contributions up to Rs. 1.5 lakh per year qualify for deduction under Section 80C. The annual interest earned is fully tax-free. The maturity amount is also fully tax-free. This triple tax benefit makes PPF one of the most tax-efficient fixed-income instruments in India, especially for investors in higher tax brackets.
PPF Withdrawal Rules
Partial withdrawal is allowed from the 7th financial year onwards — up to 50% of the balance at the end of the 4th year preceding the withdrawal year. Only one partial withdrawal is allowed per financial year. At maturity (15 years), you can withdraw the full amount, extend the account with further contributions, or extend without contributions and still earn interest.
PPF Loan Facility
From the 3rd to the 6th financial year, you can take a loan of up to 25% of the balance at the end of the 2nd year preceding the loan year. The loan carries an interest rate of 1% above the prevailing PPF rate and must be repaid within 36 months. If not repaid, the rate rises to 6% over the PPF rate. This facility is useful for short-term liquidity without breaking the account.
PPF Extension After 15 Years
At maturity, you have three options: withdraw the full amount, extend the account with contributions for further 5-year blocks (submit Form H within 1 year of maturity), or extend without contributions. During extension, you can continue to earn interest. During "with contributions" extension, you can withdraw up to 60% of the balance at the start of the extension period across 5 years.
PPF vs Other Tax-Saving Instruments
PPF offers guaranteed tax-free returns (currently 7.1%) with sovereign backing but a 15-year lock-in. ELSS mutual funds offer higher potential returns (10%–14% historically) with a 3-year lock-in but market risk. NSC offers similar rates but interest is taxable. Tax-saving FDs offer taxable interest at similar rates. For long-term, risk-free, tax-free compounding, PPF remains unmatched for Section 80C investors.
Opening a PPF Account
PPF accounts can be opened at any post office or authorised bank branch (SBI, HDFC, ICICI, Axis, etc.). You need PAN, Aadhaar, address proof, photo, and an initial deposit of Rs. 500. Most banks also allow online opening via net banking. Only one PPF account is allowed per individual (additional accounts opened in your name are irregular and do not earn interest).
PPF for Minors
A parent or legal guardian can open a PPF account on behalf of a minor child. The combined contribution to the parent's own account and the minor's account cannot exceed Rs. 1.5 lakh per year to qualify for 80C. When the child turns 18, the account is transferred to their name. This is a powerful tool for funding higher education or early adulthood expenses.
How to Maximize PPF Returns
Deposit before the 5th of April every year so your entire annual contribution earns interest for the full year. Try to contribute the full Rs. 1.5 lakh each year to maximize 80C and compounding. Extend the account in 5-year blocks beyond 15 years to continue tax-free compounding. Combine PPF with EPF, NPS, and ELSS for a balanced retirement portfolio.
Frequently asked questions
What is the current PPF interest rate?
PPF currently pays 7.1% per annum, compounded yearly. The rate is reviewed every quarter by the government.
What is the PPF maturity period?
PPF matures after 15 full financial years. After maturity, you can extend the account in 5-year blocks with or without contributions.
What are the tax benefits of PPF?
PPF enjoys Exempt-Exempt-Exempt (EEE) status. Contributions up to Rs. 1.5 lakh per year qualify for Section 80C deduction (old regime), annual interest is tax-free, and the maturity amount is fully tax-free.
Can I withdraw from PPF before maturity?
Partial withdrawal is allowed from the 7th financial year onwards, up to 50% of the balance at the end of the 4th year preceding the withdrawal year.