PPF Calculator
Estimate your Public Provident Fund maturity, understand tax-efficient long-term wealth creation, and see how disciplined saving with compounding builds your financial future.
PPF Investment Details
Minimum ₹500, maximum ₹1,50,000 per year as per PPF rules
Current PPF rate: 7.1% (set by government, updated quarterly)
Default 15-year lock-in period. Extendible in 5-year blocks (20, 25, 30...)
Extended PPF AccountInclude any existing PPF balance to continue from your current position
PPF Growth Over Time
Contributions vs Interest
Smart Insights
Explore how different factors affect your PPF returns
Year-wise Growth Breakdown
Watch your PPF corpus build year by year
Year-wise Maturity Table
Complete year-by-year breakdown of your PPF investment
| Year | Opening Balance | Deposit | Interest Earned | Closing Balance | Cumulative Interest |
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Understanding Public Provident Fund (PPF)
What is PPF?
The Public Provident Fund (PPF) is a long-term government-backed savings scheme introduced by the Ministry of Finance in 1968. It offers a combination of safety, returns, and tax benefits unmatched by most other investment options. PPF is part of the EEE (Exempt-Exempt-Exempt) category — your investment, interest earned, and maturity amount are all tax-free.
Key Features
- Government-Backed: Sovereign guarantee with zero default risk
- Tax-Free Returns: EEE status — invest, earn, and withdraw tax-free
- Attractive Interest: Rate set quarterly by the government (7.1% current)
- 15-Year Tenure: Long-term horizon designed for wealth creation
- Flexible Investment: ₹500 to ₹1,50,000 per year
- Extension Option: Extend in 5-year blocks after maturity
Eligibility
- Who Can Open: Any Indian resident individual
- Minors: Can open through a guardian
- NRIs: Not eligible to open new accounts; existing accounts can continue until maturity
- HUF: Hindu Undivided Families are not eligible
- Joint Accounts: Not permitted — PPF is an individual account
Lock-in Period
PPF has a mandatory lock-in period of 15 years. Partial withdrawals are allowed from the 7th financial year onwards (up to 50% of the balance at the end of the 4th preceding year). The 15-year lock-in ensures disciplined long-term saving and maximizes the benefits of compounding. After 15 years, you can extend the account in blocks of 5 years with or without additional contributions.
Interest Calculation
PPF interest is calculated on the minimum balance between the 5th and the last day of each month. The annual rate is set by the government and compounded yearly. Interest is credited at the end of each financial year. For maximum benefit, deposit before the 5th of April to earn interest on the entire year's contribution. The power of annual compounding means your interest earns interest in subsequent years.
Tax Benefits
PPF offers the highest level of tax efficiency under Indian tax laws through its EEE (Exempt-Exempt-Exempt) status: Exempt 1: Investments up to ₹1,50,000 per year are deductible under Section 80C. Exempt 2: Interest earned is completely tax-free with no upper limit. Exempt 3: Maturity proceeds are entirely tax-free. This triple exemption makes PPF one of the most tax-efficient investment options available.
Partial Withdrawal Rules
- When: Allowed from the 7th financial year onwards
- How Much: Up to 50% of the balance at the end of the 4th preceding year
- Frequency: One withdrawal per financial year
- Purpose: No restriction on usage
- Extension Period: One withdrawal allowed per extended block
Loan Against PPF
- Available: From the 3rd to the 6th financial year
- Amount: Up to 25% of the balance at the end of the 2nd preceding year
- Interest: 1% above the prevailing PPF rate (front-ended)
- Repayment: Must be repaid within 24 months in one or two installments
- Second Loan: Available after full repayment of the first loan, or after 12 months from the first loan disbursement
PPF vs Other Investments
- vs FD: PPF offers superior tax benefits (EEE vs ETE). FD interest is fully taxable.
- vs EPF: PPF is more flexible with voluntary contributions. EPF is employment-linked.
- vs Mutual Funds: PPF offers guaranteed returns. Mutual funds offer higher potential but with market risk.
- vs NPS: PPF has no mandatory annuity purchase. NPS requires 40% annuity at retirement.
- vs Savings Account: PPF offers significantly higher interest rates with tax benefits.
Frequently Asked Questions
What is the minimum and maximum investment in PPF per year?
The minimum annual investment is ₹500 and the maximum is ₹1,50,000. You can invest in lump sum or installments (up to 12 per year). The investment is per financial year (April to March).
Can I extend my PPF account beyond 15 years?
Yes, you can extend your PPF account indefinitely in blocks of 5 years after the initial 15-year maturity. You can choose to extend with or without making further contributions. The extended balance continues to earn the prevailing PPF interest rate with the same tax-free EEE benefits.
Is PPF completely tax-free?
Yes, PPF has EEE (Exempt-Exempt-Exempt) status. Your investment qualifies for deduction under Section 80C (up to ₹1.5 lakh), the interest earned is tax-free, and the maturity amount is also tax-free. There is no upper limit on the tax-free interest — even if your corpus grows to crores, the interest remains tax-exempt.
How is PPF interest calculated?
PPF interest is calculated on the minimum balance between the 5th and the last day of each month. The annual rate is divided by 12 for monthly calculation, and interest is credited at the end of the financial year. To maximize interest, deposit before the 5th of April so your full year's contribution earns interest for all 12 months.
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 preceding year. For example, in the 7th year, you can withdraw up to 50% of the balance at the end of the 3rd year. Complete closure before 15 years is only allowed in special cases like terminal illness or higher education.
Can I take a loan against my PPF account?
Yes, loans are available from the 3rd to the 6th financial year. You can borrow up to 25% of the balance at the end of the 2nd preceding year. The loan interest rate is 1% above the prevailing PPF rate, and repayment must be completed within 24 months.
Can NRIs invest in PPF?
NRIs are not eligible to open new PPF accounts. However, if you opened a PPF account while you were a resident Indian and later became an NRI, the account can continue until its 15-year maturity. Extension after maturity is not allowed for NRIs.
What documents are needed to open a PPF account?
You need a PPF account opening form, identity proof (Aadhaar, PAN, Passport, Voter ID), address proof, passport-size photographs, and the initial deposit amount. Most banks and post offices offer PPF accounts. The account can be opened with as little as ₹500.
What happens if I miss a year of PPF investment?
If you miss a minimum annual deposit of ₹500 in any year, the account becomes dormant. You can revive it by paying a penalty of ₹50 per year of default along with the minimum ₹500 contribution for each missed year during the revival process.
Is PPF better than mutual funds for long-term goals?
PPF offers guaranteed, tax-free returns with zero risk — ideal for conservative investors and retirement planning. Mutual funds can offer higher returns but carry market risk. Many financial advisors recommend a balanced approach: use PPF for the safe, tax-efficient portion of your portfolio and mutual funds for growth-oriented goals. The choice depends on your risk tolerance, time horizon, and financial objectives.