What is a Public Provident Fund (PPF)?
The Public Provident Fund is a government-backed long-term savings scheme that offers tax-free returns and capital safety. You can deposit between ₹500 and ₹1,50,000 per year, and the account has a lock-in of 15 years (extendable in 5-year blocks thereafter). The interest rate is set by the government quarterly — currently 7.1% p.a. compounded annually.
PPF enjoys EEE (Exempt-Exempt-Exempt) status: contributions qualify for deduction under Section 80C, the interest earned is tax-free, and the maturity proceeds are also exempt from tax. This triple tax benefit makes PPF one of the most efficient long-term savings instruments available to Indian residents.
The maturity amount is computed year-by-year: each year's balance equals (previous balance + annual deposit) multiplied by (1 + interest rate). The calculator above uses this exact formula to project your corpus.
PPF maturity examples (at 7.1% p.a.)
The numbers below show what you actually accumulate at three common deposit levels over 15, 20, and 25 years. All figures are completely tax-free — no LTCG, no TDS, no wealth tax.
| Yearly deposit | 15 yr corpus | 20 yr corpus | 25 yr corpus |
|---|---|---|---|
| ₹6,000 (₹500/mo) | ₹1.62 L | ₹2.74 L | ₹4.31 L |
| ₹60,000 (₹5,000/mo) | ₹16.2 L | ₹27.4 L | ₹43.1 L |
| ₹1,50,000 (max) | ₹40.7 L | ₹68.4 L | ₹1.08 Cr |
Calculated at 7.1% p.a. compounded annually. Assumes deposit made at the start of each financial year. Extension periods assume continued contributions.
PPF vs FD vs ELSS — which is better?
All three qualify for Section 80C deduction up to ₹1.5 lakh. The differences lie in returns, liquidity, and tax on maturity.
PPF
Conservative long-term savings — retirement corpus, children's future
Tax-Saver FD
Short 80C lock-in with guaranteed returns; no market risk tolerance
ELSS (Equity MF)
Highest long-term wealth creation; can stomach market swings
For most Indians in the 20–30% tax bracket, PPF's EEE status means the effective post-tax return is higher than an FD offering the same nominal rate. Depositing ₹1.5 lakh per year saves ₹30,000–₹45,000 in tax under Section 80C, boosting the actual yield considerably.
How to maximise your PPF returns
Deposit before 5th of April
PPF interest is calculated on the lowest balance between the 5th and last day of each month. Depositing on or before the 5th of April (i.e., the first month of the financial year) means your full annual amount earns interest for all 12 months. Depositing in March means you earn almost nothing on it for that year.
Always deposit the maximum ₹1.5 lakh
The ₹1.5 lakh annual cap is per account. If you have a spouse or can open an account for a minor child, you can legally build separate PPF accounts. Each account earns independently at 7.1% and qualifies for 80C deductions on its own.
Extend rather than close at 15 years
At maturity, extending in 5-year blocks allows withdrawals of up to 60% of the opening balance of the extension period annually. The remaining corpus continues earning tax-free interest. Many financial planners recommend extending indefinitely as a tax-free bond equivalent in the post-retirement portfolio.
Use PPF loans in years 3–6
You can borrow against your PPF balance from year 3 to year 6 at only 1% above the PPF interest rate (currently 8.1%). This is cheaper than most personal loans and doesn't affect your credit profile. The loan must be repaid before another can be taken.
PPF tax savings — a worked example
Suppose you earn ₹12 lakh gross under the Old Tax Regime and deposit ₹1.5 lakh into PPF each year. Here is how the tax maths work out:
Illustration only. Actual tax depends on other deductions, surcharge, and cess. Consult a CA for personalised advice.
Over a 15-year PPF horizon, that ₹45,000 per year tax saving alone compounds to roughly ₹12–15 lakh (if you invest the tax saving each year at 7.1%). The maturity corpus on top of this is entirely separate. PPF is effectively one of the highest-return risk-free instruments available to Indian taxpayers when the tax benefit is included in the yield calculation.
Frequently Asked Questions
What is the current PPF interest rate?
The current PPF interest rate is 7.1% per annum, compounded annually. This rate is set by the Government of India and reviewed quarterly. It has remained at 7.1% since April 2020.
What is the minimum and maximum deposit for PPF?
You can deposit a minimum of ₹500 and a maximum of ₹1,50,000 per financial year into a PPF account. Deposits can be made in a lump sum or in up to 12 instalments per year.
Can I withdraw money from PPF before 15 years?
Partial withdrawals are allowed from the 7th financial year onwards — you can withdraw up to 50% of the balance at the end of the 4th year or the immediately preceding year, whichever is lower. Premature closure is permitted only under specific circumstances such as life-threatening illness or higher education.
What are the tax benefits of PPF?
PPF enjoys EEE (Exempt-Exempt-Exempt) tax status: (1) Contributions up to ₹1.5 lakh qualify for deduction under Section 80C, (2) Annual interest earned is completely tax-free, and (3) The maturity amount is fully exempt from tax. This makes PPF one of the most tax-efficient savings instruments in India.
What happens after the 15-year lock-in period?
After the initial 15-year maturity, you can extend the PPF account in blocks of 5 years (with or without further contributions). If you do not extend, the account continues to earn interest but no further deposits are allowed. You can also close the account and withdraw the full amount.
Related Calculators
This calculator uses the current PPF interest rate of 7.1% p.a. for illustration. The government may revise this rate quarterly. Always verify the current rate with your bank or post office before making investment decisions.
About PPF Calculator
Calculate your Public Provident Fund (PPF) maturity corpus at the current 7.1% p.a. interest rate. Enter your yearly deposit and tenure to see how your tax-free savings grow. This tool is designed to be simple and accessible for users who need quick, reliable results.
When to use this tool
Use the ppf calculator when you need an accurate, immediate calculation without installing software or registering an account. It is especially useful for everyday decisions, quick comparisons, and planning where you need numbers fast.
How it works
The calculator applies standard, well-known formulas and conventions appropriate to the domain. Results are computed instantly in your browser to preserve privacy and avoid sending personal data to servers.
Limitations and tips
This tool provides informative estimates and is not a substitute for professional advice. For complex or high-stakes decisions, verify results with a qualified professional. Double-check inputs such as units, dates, and currency settings before making decisions.