PPF Calculator
How PPF maturity is calculated
The Public Provident Fund (PPF) is a government-backed savings scheme with a 15-year term, currently earning 7.1% per annum. Interest is calculated yearly and added (compounded) to your balance, and the whole thing is tax-free. The calculator above projects your maturity value from your yearly deposit and rate.
Key rules
| Feature | Detail |
|---|---|
| Tenure | 15 years (extendable in 5-year blocks) |
| Interest rate | 7.1% p.a. (reviewed quarterly) |
| Minimum / maximum per year | ₹500 / ₹1,50,000 |
| Tax status | EEE - deposit, interest and maturity all tax-free |
| Section | 80C deduction on deposits |
A worked example
Investing the maximum ₹1,50,000 every year for 15 years at 7.1%: total deposited ₹22,50,000; maturity about ₹40.6 lakh, with the roughly ₹18 lakh of interest entirely tax-free.
Why PPF works
- Safety: sovereign-backed, so capital is secure.
- Tax-free compounding: EEE status makes the effective return higher than a taxable deposit at the same rate.
- Liquidity: loans from year 3, partial withdrawals from year 7.
- Tip: deposit before the 5th of the month — interest is on the lowest balance after the 5th.
The 5th-of-the-month rule explained
PPF interest each month is calculated on the lowest balance between the 5th and the last day of the month. So if you deposit on the 6th, that money earns no interest for the whole month — you lose a month of growth. Depositing your full yearly amount before 5 April earns interest on the entire sum for all 12 months, which over 15 years adds a meaningful amount compared with depositing late or in March. If you invest monthly, do it before the 5th each time.
Extending PPF after 15 years
At maturity you have three choices: withdraw the full corpus tax-free; extend in 5-year blocks with fresh contributions; or extend without contributions and let the balance keep earning 7.1% tax-free. The "extend without contribution" option is powerful for retirees — the corpus keeps compounding tax-free and you can withdraw any amount once a year. Many people treat an extended PPF as a tax-free income bucket in retirement.
Loans and partial withdrawals
From the 3rd to 6th year you can take a loan against your PPF (up to 25% of the balance two years prior) at a low spread over the PPF rate. From the 7th year you can make one partial withdrawal a year. This makes PPF more flexible than it first appears, while the 15-year lock-in still enforces long-term discipline. The account also enjoys protection from attachment under court decree in many cases, adding to its safety.
PPF vs other 80C options
Against ELSS funds (market-linked, 3-year lock-in) and NSC (5 years, taxable interest), PPF stands out for being completely tax-free and government-backed, at the cost of a longer lock-in and a rate that is reviewed quarterly. For most people it works best as the safe, debt portion of a long-term portfolio, paired with equity SIPs for growth.
Frequently asked questions
What is the current PPF interest rate?
7.1% per annum, compounded yearly. The government reviews it every quarter.
Is PPF tax-free?
Yes, it is EEE - the deposit qualifies for 80C, and the interest and maturity are tax-free.
What is the maximum I can invest?
₹1,50,000 per financial year; the minimum is ₹500.
When should I deposit for maximum interest?
Before the 5th of the month, since interest is on the lowest balance after the 5th.
Can I withdraw before 15 years?
Partial withdrawals from year 7 and loans from year 3; full withdrawal at maturity.
Source: PPF Scheme rules and the Ministry of Finance small-savings rate for the current quarter (7.1%). Rates are reviewed quarterly - confirm before investing. ComplyKraft is independent; this is not professional advice.