PPF Calculator

The PPF Calculator works out the maturity value of your Public Provident Fund (PPF) account from your yearly contributions, the current interest rate, and your chosen tenure. Beyond a single maturity figure, it shows a year-by-year passbook, an animated growth chart, the exact rupee advantage of depositing on or before the 5th of the month, and the value of PPF's tax-free (EEE) status compared with a taxable deposit.

What is a PPF (Public Provident Fund)?

The Public Provident Fund is a long-term, government-backed savings scheme in India introduced in 1968 to encourage small savings and provide retirement security. It carries a sovereign guarantee, a fixed quarterly interest rate, a 15-year lock-in period, and full tax exemption on contributions, interest, and maturity. Because the returns are guaranteed and completely tax-free, PPF is one of the most popular fixed-income, debt-style investments for conservative savers.

PPF Maturity Formula

When you deposit a fixed amount each year on or before April 5, your PPF behaves like an annuity due — every deposit earns a full year of interest. The maturity value is:

where M is the maturity amount, P is the yearly deposit, i is the annual interest rate (as a decimal), and n is the number of years. If you instead deposit monthly, interest is computed on the lowest balance between the 5th and the last day of each month, so this calculator simulates every month to give an exact result.

Why Depositing Before the 5th Matters

This is the single biggest "free" optimization in PPF. Interest for any month is calculated on the minimum balance between the 5th and the last day of that month. So:

• A lump sum deposited on or before April 5 earns interest for all 12 months of the financial year.
• The same amount split into 12 monthly installments earns interest on only about 6.5/12 of the yearly contribution, because the later installments are in the account for fewer months.
• Over a 15-year tenure, the early-deposit habit can add a meaningful sum to your corpus at zero extra cost — the calculator shows the exact difference for your numbers.

PPF Interest Rate History

The PPF interest rate is set by the Government of India and reviewed every quarter. It has trended down over the years as overall interest rates fell:

Because the rate changes, this tool lets you enter the current rate yourself rather than hardcoding one value. The default is 7.1%, the rate in force since April 2020.

Key PPF Rules at a Glance

PPF and the EEE Tax Advantage

PPF enjoys a rare EEE (Exempt-Exempt-Exempt) status. Your contribution is deductible under Section 80C, the interest earned each year is exempt, and the final maturity amount is tax-free. In a taxable instrument such as a bank fixed deposit, interest is taxed every year at your income tax slab, which quietly drags down compounding. This calculator runs a parallel taxable deposit at the same rate so you can see how much extra wealth PPF's tax exemption is worth to you.

What Affects Your PPF Maturity?

How to Use This Calculator

1. Enter your yearly investment: Type how much you plan to deposit each year (₹500 to ₹1,50,000 for a real PPF account).
2. Set the rate and tenure: Enter the current PPF interest rate and pick 15, 20, 25 or 30 years.
3. Choose your deposit timing: Select a yearly lump sum (on/before April 5) or monthly installments (before the 5th).
4. Review your results: See your maturity value, total tax-free interest, the deposit-timing advantage, the EEE tax benefit, the growth chart, and your year-by-year passbook.

Frequently Asked Questions

What is a PPF account?

The Public Provident Fund (PPF) is a long-term, government-backed savings scheme in India with a 15-year lock-in. It offers a guaranteed interest rate set by the government each quarter, and both the interest earned and the maturity amount are completely tax-free under the EEE (Exempt-Exempt-Exempt) regime.

How is PPF interest calculated?

PPF interest is calculated on the lowest balance in your account between the 5th and the last day of each month. The monthly interest is added up and credited to your account once a year at the end of the financial year. Because interest is compounded annually, your balance grows faster the longer you stay invested.

Why should I deposit before the 5th of the month?

Interest for a month is based on the minimum balance between the 5th and the last day. If you deposit on or before the 5th, that money earns interest for the whole month. A single lump sum deposited on or before April 5 therefore earns a full year of interest, which is more than spreading the same amount across twelve monthly installments.

What is the maximum PPF investment per year?

You can invest a minimum of ₹500 and a maximum of ₹1,50,000 in a PPF account in a financial year. Deposits within this limit qualify for a tax deduction under Section 80C of the Income Tax Act.

Can I extend my PPF account after 15 years?

Yes. After the initial 15-year maturity you can extend the account in blocks of 5 years, either with or without further contributions, an unlimited number of times. Extending lets your tax-free corpus keep compounding, which is why this calculator shows projections for 15, 20, 25 and 30 year terms.

Is PPF interest taxable?

No. PPF enjoys EEE (Exempt-Exempt-Exempt) status: your contributions are deductible under Section 80C, the annual interest is exempt, and the maturity amount is tax-free. This is a major advantage over taxable instruments such as fixed deposits, where interest is taxed every year at your income tax slab.

Additional Resources

• Public Provident Fund (India) - Wikipedia
• Compound Interest - Wikipedia