worldofcalcsPPF Calculator 🇮🇳
What is PPF?
The Public Provident Fund (PPF) is a 15-year savings scheme backed by the Government of India, available at post offices and authorised banks. It earns a government-set interest rate (7.1% a year for October–December 2026), compounded annually, and carries a sovereign guarantee, so there is no market risk. PPF has EEE tax status: deposits qualify for the ₹1.5 lakh investment deduction under the old tax regime (the limit formerly known as Section 80C), and both the interest and the maturity amount are tax-free.
PPF Maturity Formula
Here P is the yearly deposit, r the annual rate (7.1% = 0.071) and n the number of years. The extra × (1+r) assumes you deposit at the start of each financial year, so every deposit earns a full year's interest. Interest is calculated each month on the lowest balance between the 5th and the last day of the month, and credited once a year on 31 March, which is why depositing on or before 5 April matters. Deposits can range from ₹500 to ₹1.5 lakh per financial year.
PPF rules at a glance
- Interest rate: 7.1% a year for October–December 2026. The government reviews it every quarter; it has not changed since April 2020.
- Deposits: minimum ₹500 and maximum ₹1.5 lakh per financial year, in one go or in instalments.
- Lock-in: 15 full financial years, extendable indefinitely in blocks of 5 years, with or without fresh deposits.
- Loans: available from the 3rd to the 6th financial year, up to 25% of the balance at the end of the second year before the year you apply.
- Partial withdrawals: once a year from the 7th financial year, up to 50% of the balance at the end of the 4th preceding year or the previous year, whichever is lower.
- One account per person. A parent can open one for a minor child, but deposits in both accounts together count towards the same ₹1.5 lakh limit.
Worked example: ₹1.5 lakh a year for 15 years
- Deposit ₹1,50,000 on 1 April every year, at 7.1% a year
- Year 1: ₹1,50,000 × 7.1% = ₹10,650 interest, closing balance ₹1,60,650
- Year 2: (₹1,60,650 + ₹1,50,000) × 7.1% = ₹22,056 interest, closing balance ₹3,32,706
- Year 3: (₹3,32,706 + ₹1,50,000) × 7.1% = ₹34,272 interest, closing balance ₹5,16,978
- The same pattern continues until the end of year 15
- Total deposited: ₹22,50,000. Total interest earned: ₹18,18,208
- Maturity amount: ₹40,68,208, all of it tax-free
PPF maturity value at 7.1%
What different yearly deposits grow to when made at the start of every financial year. The 20- and 25-year figures assume you extend the account and keep depositing.
| Yearly deposit | 15 years | 20 years | 25 years |
|---|---|---|---|
| ₹50,000 | ₹13,56,070 | ₹22,19,429 | ₹34,36,004 |
| ₹1,00,000 | ₹27,12,139 | ₹44,38,858 | ₹68,72,008 |
| ₹1,50,000 | ₹40,68,208 | ₹66,58,287 | ₹1,03,08,012 |
Assumes the rate stays at 7.1% throughout. The rate is revised every quarter, so treat long-term figures as estimates.