Public Provident Fund (PPF) Calculator
Project your guaranteed 15-year PPF maturity wealth, annual interest accumulation, and tax-free compounding backed by sovereign guarantee.
How does a Public Provident Fund (PPF) compound? The PPF is a 15-year statutory savings instrument offering sovereign guarantee with EEE (Exempt-Exempt-Exempt) tax benefits. Contributing the maximum allowable limit of ₹1,50,000 annually at the current 7.1% interest rate yields a tax-free maturity corpus of approximately ₹40,68,209 (consisting of ₹22.5 Lakhs invested and ₹18.18 Lakhs in interest). Interest is calculated on the lowest balance between the 5th and end of each calendar month.
₹40,68,209
Year-by-Year Growth Schedule (Milestones)
| Year | Total Invested | Interest in Year | Year-End Balance |
|---|---|---|---|
| Year 1 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| Year 2 | ₹3,00,000 | ₹22,056 | ₹3,32,706 |
| Year 3 | ₹4,50,000 | ₹34,272 | ₹5,16,978 |
| Year 4 | ₹6,00,000 | ₹47,355 | ₹7,14,334 |
| Year 5 | ₹7,50,000 | ₹61,368 | ₹9,25,701 |
| Year 10 | ₹15,00,000 | ₹1,47,842 | ₹22,30,124 |
| Year 15 | ₹22,50,000 | ₹2,69,695 | ₹40,68,209 |
About Public Provident Fund (PPF) Maturity & Interest Calculator
Comprehensive guide to sovereign EEE compounding, the 5th-of-the-month deposit rule, 15-year maturity cycles, and 5-year block extensions.
The Public Provident Fund (PPF) is an Indian statutory small savings instrument established under the Public Provident Fund Act of 1968 (now governed under the Government Savings Promotion Act). Backed by sovereign government guarantees, PPF offers 100% principal safety, guaranteed interest backed by the Consolidated Fund of India, and the prestigious Exempt-Exempt-Exempt (EEE) tax status.
Under the EEE tax regime, contributions made to a PPF account are eligible for tax deductions under Section 80C of the Income Tax Act (up to ₹1,50,000 per financial year under the Old Tax Regime), the annual interest accrued is completely exempt from income tax, and the entire maturity proceeds (principal plus accumulated compounding interest) are 100% tax-free at withdrawal.
PPF carries a statutory initial tenure of 15 complete financial years. Upon reaching maturity, account holders can either withdraw the full tax-free corpus or extend the account in continuous 5-year blocks—with or without fresh contributions—allowing compound interest to generate massive wealth for retirement or generational wealth transfer.
Step-by-Step Usage Guide
Specify Annual Investment Amount
Input your planned yearly deposit. Statutory rules require a minimum of ₹500 and cap contributions at ₹1,50,000 per financial year.
Confirm Current Statutory Interest Rate (%)
The rate is notified quarterly by the Ministry of Finance (currently benchmarked at 7.10% compounded annually).
Select Investment Tenure & Extensions
Choose your maturity timeline: the mandatory 15-year baseline, or extend to 20, 25, or 30 years using 5-year block extensions.
Analyze Wealth Growth & Milestones
Inspect the year-by-year compounding schedule to observe how interest earned annually begins to surpass your fresh annual deposits.
Practical Case Study: Maximizing the ₹1,50,000 Annual PPF Limit for 15 Years
An investor deposits the maximum allowable limit of ₹1,50,000 on or before April 5 every year for the mandatory 15-year PPF maturity cycle at 7.10% interest.
- ›Total Out-of-Pocket Deposits over 15 years = ₹1,50,000 × 15 = ₹22,50,000
- ›Year 1: Deposit ₹1,50,000 + Interest ₹10,650 = Year-End Balance ₹1,60,650
- ›Year 5: Total Invested ₹7,50,000 | Compounded Balance ₹9,16,778
- ›Year 10: Total Invested ₹15,00,000 | Compounded Balance ₹22,08,126
- ›Year 15 Maturity: Total Invested ₹22,50,000 | Compounded Balance ₹40,68,209
- ›Total 100% Tax-Free Interest Earned = ₹40,68,209 - ₹22,50,000 = ₹18,18,209
- ›Extension Bonus: Extending for another 10 years (25 years total) increases the corpus to ₹1,03,08,015 (Over ₹1 Crore)!
Notice that in Year 15, the annual interest earned alone (₹2,69,209) is almost double the fresh annual deposit of ₹1.5 Lakh!
Formula & Mathematical Specification
Annual Compounding Annuity Formula for PPF
Applied when deposits are made at the start of each financial year (on or before April 5). Interest is calculated monthly on the lowest balance between the 5th and end of the month, and credited annually on March 31st.
- F:Total maturity corpus accumulated at tenure completion
- P:Annual deposit amount (statutory maximum ₹1,50,000)
- r:Annual interest rate (e.g., 7.10% = 0.071)
- n:Number of financial years (15, 20, 25, 30)
Best Practices & Pro Tips
- ✓The "Golden 5th of the Month" Rule: PPF interest is calculated on the lowest balance between the close of the 5th day and the end of the month. Depositing on or before the 5th of each month (or in a lump sum between April 1–5) earns you an entire extra month of compounding interest!
- ✓Extend in 5-Year Blocks: You can extend your PPF account beyond 15 years in blocks of 5 years indefinitely. Form H must be submitted within 1 year of maturity to continue making fresh deposits.
- ✓Partial Withdrawals from Year 7: You can make one partial withdrawal per financial year starting from the 7th financial year (up to 50% of the balance at the end of the 4th preceding year).
- ✓Immunity from Court Attachment: Under Section 15 of the Government Savings Promotion Act, your PPF account cannot be attached by any court of law under any decree or order regarding any debt or liability.
Common Mistakes to Avoid
- ✗Depositing After the 5th Day: Making a monthly contribution on the 6th or 10th of a month means that contribution earns zero interest for that entire month.
- ✗Exceeding ₹1,50,000 Limit: Any deposit exceeding ₹1.5 Lakhs in a financial year earns 0% interest and is refunded without Section 80C benefits.
- ✗Opening Multiple PPF Accounts: An individual cannot legally hold more than one PPF account in their own name (accounts opened for minor children are separate, but combined deposits must not exceed ₹1.5L).
- ✗Failing to Submit Form H for Extensions: If you continue depositing money after 15 years without submitting Form H, those fresh deposits earn 0% interest.
100% In-Browser Privacy & Data Security
All PPF maturity calculations and interest milestone projections execute 100% locally in your web browser. No financial amounts or account numbers are uploaded or stored.
Frequently Asked Questions
What is the "5th of the month" deposit rule in PPF?▼
According to PPF rules, interest is calculated on the minimum balance maintained in the account between the close of the 5th day and the last day of the calendar month. If you deposit after the 5th, that money earns no interest for that month. To maximize returns, deposit on or before the 5th of every month, or deposit the entire yearly lump sum between April 1 and April 5.
What is the current interest rate on PPF and how is it paid?▼
The PPF interest rate is benchmarked by the Ministry of Finance quarterly (currently 7.10% per annum). Interest is calculated on a monthly basis based on the lowest balance between the 5th and the end of each month, but it is credited to your account once annually at the end of the financial year on March 31st.
Can I extend my PPF account after the initial 15-year maturity?▼
Yes. You can extend your PPF account in blocks of 5 years indefinitely. You can choose to extend with contributions (by submitting Form H to your bank within 1 year of maturity) or extend without fresh contributions, where your accumulated balance continues to earn the prevailing interest rate tax-free.
Are PPF interest and maturity amounts taxable in India?▼
No. PPF enjoys complete EEE (Exempt-Exempt-Exempt) tax status. Contributions are eligible for deduction under Section 80C (up to ₹1.5 Lakhs in Old Regime), annual interest is 100% tax-free, and the entire maturity proceeds are completely exempt from income tax.
Can a Non-Resident Indian (NRI) open a PPF account?▼
NRIs are not permitted to open new PPF accounts. However, if a resident Indian opened a PPF account before becoming an NRI, they can continue to operate the account until its initial 15-year maturity on a non-repatriation basis, but cannot extend it further.
Can I take a loan against my PPF balance?▼
Yes. You can avail a loan against your PPF balance between the 3rd and 6th financial year from the year of account opening. The maximum loan amount is capped at 25% of the balance at the end of the 2nd preceding financial year, at an interest rate of 1% above the prevailing PPF rate.
Popular Financial & Math Calculators
All CalculatorsEMI Calculator
Calculate monthly EMI for home, car, education and personal loans. Includes full amortisation schedule and total interest breakdown.
SIP Return Calculator
Project mutual fund SIP returns with monthly compounding, growth charts, step-up estimates, and wealth creation goals.
FD & RD Maturity Calculator
Calculate Fixed Deposit and Recurring Deposit maturity amount with quarterly compounding, TDS deduction, and effective yield.
GST Calculator
Add or remove GST from any amount. Supports all GST slabs (5%, 12%, 18%, 28%). Shows CGST, SGST, and IGST split.
Results are for educational and illustrative purposes only. They do not constitute financial, investment, or advisory recommendations. Learntrix accepts no liability for decisions made based on these figures. Interest rates, charges, and terms vary across lenders and change over time. Always consult a SEBI-registered financial advisor or bank representative before making any financial commitment.
Learntrix · Accuracy not guaranteed · For reference only
Popular Financial & Math Calculators
All CalculatorsEMI Calculator
Calculate monthly EMI for home, car, education and personal loans. Includes full amortisation schedule and total interest breakdown.
SIP Return Calculator
Project mutual fund SIP returns with monthly compounding, growth charts, step-up estimates, and wealth creation goals.
FD & RD Maturity Calculator
Calculate Fixed Deposit and Recurring Deposit maturity amount with quarterly compounding, TDS deduction, and effective yield.
GST Calculator
Add or remove GST from any amount. Supports all GST slabs (5%, 12%, 18%, 28%). Shows CGST, SGST, and IGST split.