PPF Calculator - Public Provident Fund Maturity & Interest
Enter your yearly PPF deposit and investment period to get the maturity amount, total interest earned, and a complete year-by-year growth schedule. The calculator also shows your loan eligibility from year 3, partial withdrawal limit from year 7, and the projected corpus if you extend beyond 15 years in 5-year blocks. The current PPF interest rate is 7.1% per annum, compounded annually.
Formula
Worked example
Deposit INR 1,00,000 per year for 15 years at 7.1%: r = 0.071, M = 1,00,000 x [(1.071^15 - 1) / 0.071] = 1,00,000 x [2.7745 - 1] / 0.071 = 1,00,000 x 24.993 = INR 27,12,139. Total deposited = INR 15,00,000; total interest = INR 12,12,139 (fully tax-free).
What is a PPF account?
The Public Provident Fund (PPF) is a government-backed, long-term savings scheme introduced in India in 1968. It is one of the most popular investment instruments for salaried and self-employed individuals because it combines guaranteed returns (the rate is set by the Government of India each quarter), complete safety of capital, and the highest-tier tax treatment available in India, the Exempt-Exempt-Exempt (EEE) status. This means the deposit is eligible for deduction under Section 80C of the Income Tax Act (up to INR 1,50,000 per year), the interest earned is tax-free, and the entire maturity amount is also received free of tax.
How is PPF interest calculated?
PPF interest is calculated on the minimum balance held between the 5th and the last day of each calendar month, and it is credited to the account at the end of each financial year (31 March). This is why the conventional advice is to deposit your annual contribution before the 5th of April - doing so means the full amount earns interest for the entire financial year. The standard maturity formula is M = P x [((1 + r)^n - 1) / r], where P is the annual deposit, r is the annual interest rate as a decimal, and n is the number of years. This calculator applies this formula year-by-year to show the exact closing balance at the end of each year.
Loan and partial withdrawal rules
PPF allows limited liquidity through two mechanisms. A loan against the PPF balance is available from the start of the third financial year to the end of the sixth financial year. The maximum loan is 25% of the balance at the end of the second preceding financial year. The loan must be repaid within 36 months; if not repaid, subsequent loans are blocked. Partial withdrawal is allowed from the seventh financial year onwards, once per financial year. The maximum amount you can withdraw is 50% of the balance at the end of the fourth year or 50% of the balance at the end of the year immediately preceding the withdrawal, whichever is lower. Withdrawals are fully tax-free.
Extending your PPF beyond 15 years
At maturity, you are not required to close your PPF account. You can extend it in blocks of 5 years with continued contributions (and continue earning interest and the tax deduction each year) or retain the balance without making fresh deposits (the balance continues to earn interest tax-free). Many long-term wealth builders extend repeatedly, reaching tenures of 25 to 30 years, where compounding at 7.1% delivers a corpus that is 5 to 8 times the total deposited. Use this calculator with 20, 25 or 30 years to see how the corpus scales.
PPF rules at a glance
| Feature | Details |
|---|---|
| Minimum yearly deposit | INR 500 |
| Maximum yearly deposit | INR 1,50,000 |
| Lock-in period | 15 years |
| Extension | 5-year blocks (with or without contributions) |
| Current interest rate | 7.1% p.a., compounded annually |
| Tax status | EEE - Exempt-Exempt-Exempt under Income Tax Act |
| Loan against PPF | Years 3 to 6 - up to 25% of balance 2 years prior |
| Partial withdrawal | From year 7 - up to 50% of balance (once per year) |
| Number of accounts | One per individual (plus one in HUF name, if applicable) |
| Premature closure | After 5 years in case of medical emergency or education |
Key limits and rules for the Public Provident Fund as applicable in FY 2026-27.
Frequently asked questions
What is the maximum amount I can deposit in PPF per year?
The maximum amount you can deposit in a PPF account is INR 1,50,000 per financial year (April 1 to March 31). Deposits above this limit earn no interest on the excess and are not eligible for the Section 80C deduction. You can make up to 12 deposits per year; deposits can be made monthly, quarterly, or as a lump sum as long as the yearly total does not exceed INR 1,50,000.
Is PPF interest completely tax-free?
Yes. PPF enjoys EEE status under the Income Tax Act. Your contribution is eligible for deduction under Section 80C (up to INR 1,50,000 per year). The interest credited each year is fully exempt from income tax and does not need to be declared as income. The entire maturity amount, including all accumulated interest, is also received tax-free. This triple exemption makes PPF one of the most tax-efficient instruments available in India.
Can I withdraw money from PPF before 15 years?
Full premature closure is allowed only after the completion of 5 financial years and only under specified reasons: treatment of a life-threatening illness for the account holder or family members, or higher education of the account holder or minor child. A penalty of 1% is deducted from the applicable interest rate for the years the account was held. Partial withdrawals (not full closure) are allowed from the seventh year onwards, once per financial year, subject to the 50% limit described above.
What happens if I miss a year of PPF deposit?
PPF accounts require a minimum deposit of INR 500 per financial year to remain active. If you do not deposit in any financial year, the account becomes inactive (defaulted). You can reactivate a defaulted account by paying the minimum deposit of INR 500 for each defaulted year plus a penalty of INR 50 per defaulted year. The account continues to earn interest even while inactive, but you cannot take a loan or make partial withdrawals from an inactive account.
When should I deposit to maximise PPF interest?
Deposit before the 5th of April each financial year. PPF interest is calculated on the minimum balance between the 5th and the last day of each month. If you deposit on or before the 5th of April, that deposit earns interest for all 12 months of the financial year. A deposit made on the 6th of April or later earns interest only from May onwards, losing one full month of interest. Over 15 years, early deposits can add tens of thousands of rupees to the final corpus.
Can I open more than one PPF account?
No. An individual can hold only one PPF account in their own name. However, a parent or guardian can open a PPF account on behalf of a minor child, and a Hindu Undivided Family (HUF) could historically open PPF accounts (new HUF accounts were discontinued in 2005, but existing ones continue). If two accounts are mistakenly opened, only the first is treated as a regular PPF account; the second is treated as irregular and earns only post-office savings account interest.
How does extending PPF by 5 years compare to reinvesting elsewhere?
Extending your PPF and continuing full contributions is almost always superior for zero-risk, tax-free growth in India. At 7.1% compounded annually, your money doubles roughly every 10 years. No bank fixed deposit, government bond, or similar guaranteed instrument currently offers this rate net of tax. The comparison changes only if you need liquidity or if taxable instruments offer materially higher pre-tax yields, which at typical income tax rates of 20-30% would require pre-tax returns of 9-10% to match PPF net returns.