What is the PPF Calculator?
The Public Provident Fund (PPF) is one of India's most trusted long-term savings schemes, backed by the Government of India. It combines guaranteed returns with EEE (Exempt-Exempt-Exempt) tax status: your investment qualifies for a deduction under Section 80C, the interest earned is tax-free, and the maturity amount is tax-free too.
A PPF account has a 15-year lock-in and accepts deposits between ₹500 and ₹1.5 lakh per financial year. The interest rate is notified quarterly by the government (7.1% p.a. as of FY 2025-26) and compounds annually. This calculator assumes deposits are made at the start of each financial year (before 5 April), which maximises the interest you earn.
PPF Calculator Formula & How It Works
- A = Maturity amount
- P = Yearly deposit
- r = Annual interest rate (currently 7.1%)
- n = Total years (minimum 15)
- y = Year of each deposit
Each yearly deposit compounds annually from the year it is made until maturity. Because interest is credited on the balance every year, earlier deposits earn substantially more — a strong reason to invest at the start of each financial year rather than the end.
Worked Examples
₹1.5 lakh per year for 15 years at 7.1%
Total deposits of ₹22.5 lakh grow to approximately ₹40.7 lakh at maturity — about ₹18.2 lakh of completely tax-free interest.
₹50,000 per year for 15 years at 7.1%
You invest ₹7.5 lakh in total and receive roughly ₹13.6 lakh at maturity, earning around ₹6.1 lakh in interest.
Expert Tips
- Deposit before 5 April each year so the full year's deposit earns interest.
- Interest is calculated on the lowest balance between the 5th and the last day of each month — deposit before the 5th of the month.
- After 15 years you can extend the account in 5-year blocks, with or without fresh contributions.