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PPF Calculator

Public Provident Fund — Maturity, Interest, Extension & Tax Savings at 7.1%

PPF Investment Details

Enter your annual contribution and investment preferences.

Annual Investment (₹)

Min ₹500 — Max ₹1,50,000 per year

Investment Frequency

Interest Rate (% p.a.)

Current PPF rate: 7.1% (2025)

Lock-in Tenure

15 Years (Fixed)

Extendable in 5-year blocks

PPF Advanced Parameters

Extension simulator, partial withdrawal, loan eligibility & PPF vs FD vs SIP.

Annual Investment (₹)

Investment Frequency

Interest Rate (% p.a.)

After 15 Years — Extension Option

Current Account Year (for withdrawal/loan)

Enter 3–6 for loan check, 7+ for withdrawal

Maturity Amount — After 15 years

Total Invested — Principal

Interest Earned — Tax-free

Effective CAGR — Compounded

Extension Simulator — After 15 Years

Withdraw at Maturity

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Close account, receive corpus

Extend 5 Yrs + Contribution

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Continue investing for 5 more years

Extend 5 Yrs (No Deposit)

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Let corpus grow, no new deposits

Partial Withdrawal & Loan Eligibility

Partial Withdrawal Eligible

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50% of 4th-year balance (from Year 7)

Loan Eligible Amount

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25% of 2yr-prior balance (Years 3–6)

Section 80C Tax Savings (30% bracket)

Annual Tax Saving

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On ₹1.5L invested @ 30% slab

Total Tax Saved (15 Yrs)

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Cumulative 80C benefit

PPF vs FD vs SIP — 15 Year Comparison

PPF @ 7.1% | FD @ 7.0% | SIP @ 12% CAGR (same annual investment)

PPF (7.1%)

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EEE — Fully tax-free

FD (7.0%)

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Interest taxable as income

SIP Equity (12%)

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Market returns — higher risk

Investment Timing Impact (1 Year)

Interest difference between investing before vs. after the 5th of each month.

Before 5th

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After 5th

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Interest Lost

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Year-by-Year Projection

PPF Formula Reference

Maturity = Σ[ P × (1 + r)^n ]
Interest = Min. bal (5th–last) × r/12
CAGR = (Maturity / Invested)^(1/15) − 1

Loan = 25% × Bal(yr − 2) [Yr 3–6]
Withdrawal = 50% × Bal(Yr 4) [Yr 7+]
80C Saving = Annual × 30%

r = annual rate / 12 | Interest calculated on minimum balance between 5th & last day of each month | Rate: 7.1% p.a. (2025)

What is PPF (Public Provident Fund)?

PPF is a sovereign-backed, long-term savings and investment scheme introduced in India in 1968. Administered by the National Savings Institute under the Ministry of Finance, it offers a guaranteed, government-declared interest rate with full tax exemption on contributions, interest, and maturity — making it one of the most attractive risk-free instruments available to Indian investors.

The account has a mandatory 15-year lock-in period and can be extended indefinitely in 5-year blocks. The interest rate is reviewed every quarter by the Finance Ministry and currently stands at 7.1% per annum (2025), compounded annually but calculated monthly on the minimum balance between the 5th and last day of each month.

Key PPF Rules at a Glance

Parameter	Details
Minimum investment	₹500 per financial year
Maximum investment	₹1,50,000 per financial year
Lock-in period	15 years
Interest rate (2025)	7.1% p.a., compounded annually
Tax status	EEE — Exempt at investment, interest & maturity
Section 80C deduction	Up to ₹1.5 lakh per year
Partial withdrawal	From Year 7, up to 50% of 4th-year balance
Loan facility	Year 3 to 6, up to 25% of 2-year-prior balance
Extension	5-year blocks, with or without contributions

Worked Examples

Example 1: ₹12,500/month (Maximum Annual Investment)

Investing ₹12,500 every month equals the annual maximum of ₹1,50,000. At 7.1% p.a., monthly deposits across the financial year slightly underperform a lump sum invested in April because the lump sum earns interest for all 12 months, while monthly deposits earn from their respective deposit months onwards. Over 15 years, the maturity corpus is approximately ₹40.7 lakh on a total investment of ₹22.5 lakh — an interest gain of roughly ₹18.2 lakh, entirely tax-free.

Example 2: ₹1.5 Lakh Lump Sum Every April

A lump sum of ₹1,50,000 invested on or before April 5th every year earns the maximum possible PPF interest because the full annual amount earns interest from the very first month of the financial year. Over 15 years at 7.1%, this yields a maturity amount of approximately ₹40.7 lakh versus ₹22.5 lakh invested — a tax-free interest return of about ₹18.2 lakh. Additionally, the annual Section 80C deduction of ₹1.5 lakh saves ₹45,000 per year in taxes for someone in the 30% bracket, totalling ₹6.75 lakh saved over 15 years.

Example 3: 5-Year Extension After 15 Years

Suppose your PPF corpus is ₹40.7 lakh after 15 years. If you extend with continued contribution of ₹1.5 lakh per year for another 5 years at the same 7.1% rate, the corpus grows to approximately ₹67 lakh — an additional ₹26+ lakh of growth on the already-accumulated base. If you extend without contributions, the ₹40.7 lakh simply compounds at 7.1% for 5 years to reach approximately ₹57.6 lakh — a gain of ₹16.9 lakh with no fresh investment.

PPF vs FD vs SIP — Which is Best?

The right choice depends on your tax bracket, risk tolerance, and investment horizon. PPF offers guaranteed, tax-free returns with sovereign backing — ideal for conservative investors in high tax brackets. FD returns are fully taxable as income, so the post-tax yield at 30% bracket on a 7% FD is only about 4.9%. SIP in equity mutual funds historically generates 10–14% CAGR over the long term, but comes with market risk and LTCG tax of 10% on gains above ₹1 lakh per year.

Feature	PPF	FD	SIP (Equity)
Returns	7.1% (guaranteed)	6.5–7.5% (market-linked)	10–14% (historical)
Tax on returns	Fully exempt (EEE)	Taxable as income	10% LTCG above ₹1L
Risk	Sovereign guarantee	Bank guarantee (up to ₹5L)	Market risk
Liquidity	Low (15-yr lock-in)	Medium (with penalty)	High (T+1 to T+3)
80C benefit	Yes (up to ₹1.5L)	5-yr FD only	Only ELSS funds

Frequently Asked Questions

What is PPF and who can invest in it?

PPF (Public Provident Fund) is a government-backed long-term savings scheme in India with a 15-year lock-in period. Any Indian resident individual can open a PPF account — including salaried employees, self-employed individuals, and those who invest on behalf of minors. NRIs cannot open new PPF accounts, but existing accounts opened as residents can be continued until maturity.

What is the current PPF interest rate in 2025?

The PPF interest rate for 2025 is 7.1% per annum, compounded annually. The rate is set by the Government of India each quarter. The interest is calculated on the minimum balance between the 5th and last day of each calendar month, which is why investing before the 5th of every month maximises the interest earned.

How much can I invest in PPF per year?

The minimum annual PPF investment is ₹500 and the maximum is ₹1,50,000 (₹1.5 lakh) per financial year. You can invest in up to 12 instalments within a year, or as a single lump sum. Investments above ₹1.5 lakh in a year do not earn interest and are not eligible for the 80C tax deduction.

Is PPF maturity amount fully tax-free?

Yes. PPF follows the EEE (Exempt-Exempt-Exempt) tax model. The annual investment (up to ₹1.5 lakh) qualifies for deduction under Section 80C of the Income Tax Act. The interest earned every year is completely tax-exempt. The maturity amount — both principal and accumulated interest — is also fully tax-free. This triple tax benefit makes PPF one of the most tax-efficient savings instruments in India.

Can I withdraw from PPF before 15 years?

Partial withdrawals from a PPF account are permitted from the 7th financial year onwards. The maximum withdrawal is 50% of the balance at the end of the 4th year or the end of the preceding year, whichever is lower. Only one partial withdrawal is allowed per year. The account cannot be closed prematurely before 15 years except in specific circumstances like a life-threatening illness of the account holder or their dependents, or for children's higher education.

Can I take a loan against my PPF account?

Yes. You can avail a loan against your PPF account between the 3rd and 6th financial years. The eligible loan amount is up to 25% of the balance at the end of the 2nd year preceding the year of the loan application. The loan must be repaid within 36 months. After the 6th year, loans are no longer available, but partial withdrawals can be made from the 7th year onwards.

What happens to PPF after 15 years?

After the initial 15-year tenure, you have three options: (1) Withdraw the entire maturity amount and close the account; (2) Extend without contribution for a 5-year block — the corpus continues to earn interest at the prevailing rate with no new deposits required; (3) Extend with continued contributions in 5-year blocks, subject to a fresh declaration within 1 year of maturity. The extension strategy allows the power of compounding to work on a large accumulated base, often yielding dramatically higher final amounts.

Why should I invest before the 5th of each month in PPF?

PPF interest is calculated on the minimum balance between the 5th and the last day of each month. If you invest on or before the 5th, that amount is included in the minimum balance calculation for that month, earning a full month's interest. Investing after the 5th means you lose one month's interest on that installment — the deposit earns interest only from the following month. Over 15 years, this timing difference can add up to thousands of rupees in lost interest, making the invest-before-5th rule one of the most important PPF optimization tips.