PPF Calculator
Estimate what your Public Provident Fund account will be worth at maturity, based on your annual contribution and the government's current rate.
Statutory range: ₹500 – ₹1,50,000 per financial year.
Government-notified, revised quarterly — pre-filled with the current rate.
15-year statutory minimum, extendable in blocks of 5 years.
Maturity value
₹40,68,209
Interest earned: ₹18,18,209
Absolute returns
80.81%
PPF tips
- Deposit your full year's contribution before 5 April to maximise that year's interest.
- PPF interest and maturity value are tax-free — factor that into how it compares with taxable options like FD or RD.
- Review the account after 15 years: you can withdraw everything, or extend in 5-year blocks with or without further contributions.
How it's calculated
PPF pays interest once a year, but it's computed monthly on the lowest balance held between the 5th and the last day of each month. Depositing your full year's contribution on or before 5 April (the start of the financial year) earns the most interest — this calculator assumes exactly that, modelling one deposit per year compounding annually.
Maturity value = Annual contribution × [(1 + r)ⁿ − 1] / r × (1 + r)
Example
Contributing the maximum ₹1,50,000 every year for 15 years at 7.1% grows to roughly ₹40,68,209 — about ₹18,18,209 in tax-free interest on ₹22,50,000 contributed.
About the Public Provident Fund
PPF is a government-backed, long-term savings scheme popular for its combination of a guaranteed, tax-free return and one of the largest tax deductions available under Section 80C. It's designed for long-horizon goals — retirement, a child's education — not short-term savings, given its 15-year statutory lock-in.
How it works
Each financial year, you contribute anywhere from ₹500 to ₹1,50,000 into your PPF account. The government sets and revises the interest rate quarterly; it's compounded annually and credited to your account at the end of each financial year. The account matures after 15 years, but can be extended indefinitely in blocks of 5 years, with or without further contributions.
How to use it
- Set the annual amount you plan to contribute (₹500 minimum, ₹1,50,000 maximum per financial year).
- The interest rate is pre-filled with the current government-notified rate — adjust it to model a rate change over a long tenure.
- Set the tenure: 15 years is the statutory minimum; choose a longer one in 5-year steps to model an extension.
Strategies
Depositing the full ₹1,50,000 early in the financial year (ideally before 5 April) maximises the interest earned that year, since PPF interest is based on the lowest monthly balance. Because the rate is revised quarterly and PPF spans at least 15 years, the actual maturity value will differ from this projection as rates change — treat the result as a reasonable estimate, not a guarantee.
Important caveats
- This calculator assumes one deposit per year, timed for maximum interest — depositing later in the year, or in smaller instalments through the year, earns somewhat less than shown.
- The interest rate is fixed for the projection but is actually revised by the government every quarter over a real 15+ year account.
- Partial withdrawals (allowed from the 7th year) and loans against the balance (allowed earlier) aren't modelled — this assumes the account runs untouched.
Why it works
Because the same fixed amount is deposited every year and compounds at a constant annual rate (for the duration you set), the account balance follows the future-value- of-an-annuity formula exactly — the same maths behind a SIP, but with yearly instead of monthly periods.
Benefits
- Government-backed principal and interest — no market risk.
- Contributions qualify for a Section 80C tax deduction, and both the interest and maturity value are tax-free (EEE status).
- The long lock-in enforces savings discipline for a genuinely long-term goal.
Frequently asked questions
How is PPF maturity value calculated?
We model one deposit per year, compounding annually — the standard simplifying convention used by virtually every PPF calculator. Depositing before the 5th of the month (ideally at the start of the financial year) is what makes this model accurate; depositing later in the year earns slightly less than shown here.
What are the minimum and maximum PPF contribution limits?
By law, a PPF account requires a minimum deposit of ₹500 and allows a maximum of ₹1,50,000 in a financial year, across any number of instalments.
Can I withdraw from PPF before 15 years?
Partial withdrawals are allowed from the 7th financial year onward, subject to conditions, and premature closure is permitted only in specific cases like medical emergencies. This calculator assumes the account runs its full chosen tenure untouched.
Learn more from official sources
- India Post — Savings Schemes — official rate notifications for PPF and other post-office schemes.
- National Savings Institute — Ministry of Finance body overseeing small savings schemes.
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