PPF Calculator — Maturity Value & Interest

Quick answer

A PPF calculator shows what your Public Provident Fund deposits will grow to at maturity. Enter your yearly deposit (₹500 to ₹1.5 lakh), the current interest rate and the number of years (at least 15). It compounds the balance once a year, as PPF does. For example, ₹1.5 lakh a year for 15 years at 7.1% grows to about ₹40.68 lakh — and the whole maturity amount is tax-free.

How to use the PPF calculator

The calculator has three fields, and the result updates as you type.

1. Yearly deposit — the total you plan to put in each financial year. PPF allows a minimum of ₹500 and a maximum of ₹1.5 lakh a year. If you type more than ₹1.5 lakh, the calculator uses ₹1.5 lakh, because anything above the limit earns no interest and gets no tax deduction.
2. Interest rate % — pre-filled as 7.1%. The government reviews the PPF rate every quarter, so replace it with the latest rate announced by the Ministry of Finance, or try a lower rate to see a cautious estimate.
3. Years — pre-filled as 15. You can enter more years to see the effect of extending the account in five-year blocks. If you type fewer than 15, the calculator uses 15, since that is the minimum term.

The result shows the maturity value, the total you deposited, the interest earned and the rate assumed. The note under the result reminds you to deposit before the 5th of a month to earn interest for that month — or once a year before 5 April to earn interest for the full year.

Getting more out of the calculator

• Plan backwards from a goal. If you need about ₹13.5 lakh in 15 years, try ₹50,000 a year at 7.1% — the result is ₹13,56,070. Adjust the deposit until the maturity value matches your goal.
• Test extensions. Enter 20 or 25 years to see what continuing for one or two more blocks adds. The jump is large because interest is earned on a big balance.
• Use a cautious rate. Since the rate can change every quarter, also run the numbers at a rate a little below the current one.
• Remember the timing. The figure assumes deposits at the start of each year. If you usually deposit in March, your real result will be lower, as Example 4 shows.

The calculator remembers your last entries in your own browser, so you can come back and compare. Nothing you type is sent to our server.

The formula behind the result

The calculator assumes you deposit the same amount at the start of every financial year, before 5 April. Each year it adds that deposit to the balance and then adds a full year's interest:

Balance at end of year = (Balance at start of year + Deposit) × (1 + rate ÷ 100)

It repeats this for each year you entered. Interest earned is the maturity value minus the total deposited.

This mirrors how PPF really works. Interest is calculated every month on the lowest balance between the close of the 5th day and the end of the month, but it is credited to the account only once, at the end of the financial year. So interest compounds yearly, not monthly. A deposit made on or before the 5th counts for that month; a deposit made on the 6th misses that month's interest.

A small illustration: your balance is ₹2,00,000 on 1 June and you deposit ₹50,000 on 8 June. The lowest balance between 5 June and 30 June is ₹2,00,000, so June's interest at 7.1% is ₹2,00,000 × 7.1% ÷ 12, about ₹1,183. From July, the lowest balance is ₹2,50,000, so each month earns about ₹1,479. Had you deposited on 5 June, June would also have earned ₹1,479. These monthly amounts are added up and credited on 31 March.

PPF rules at a glance

Opening an account

You can open a PPF account at any post office that handles savings schemes, or at an authorised bank branch. Many banks also let existing customers open one through net banking. You will need the account opening form, PAN, Aadhaar or other KYC documents, a photograph, a nomination and the first deposit of at least ₹500.

Once open, you can deposit by cash, cheque or online transfer, depending on where the account is held. Keep the passbook or online statement updated; it is your proof of deposits for the 80C claim and of interest credited each year.

The full scheme rules and current interest rate for small savings schemes are published by India Post and the authorised banks.

Tax treatment: why PPF is called EEE

PPF is one of the few investments that is exempt at all three stages — when you invest, while it grows and when you withdraw.

• Deposit: deductible under section 80C, within the overall ₹1.5 lakh limit that also covers EPF, ELSS, life insurance premium, tuition fees and home-loan principal. This benefit is available only in the old regime.
• Interest: fully exempt every year, in both regimes.
• Maturity and withdrawals: fully exempt, in both regimes.

So even if you are in the new regime and get no deduction, PPF interest remains tax-free. To see how much tax your PPF deposit saves along with your other investments, use the 80C and 80D deductions calculator. To check which regime is cheaper for you overall, use the income tax calculator.

A quick comparison: in the old regime, a ₹1.5 lakh PPF deposit saves ₹46,800 of tax for someone in the 30% slab (30% plus 4% cess), ₹31,200 in the 20% slab and ₹7,800 in the 5% slab — assuming the 80C limit is not already used up by EPF or other items.

Because the interest is tax-free, a 7.1% PPF return is worth about 10.3% from a fully taxable investment for someone in the 30% slab, and about 9% for someone in the 20% slab (including cess, ignoring surcharge).

Note: from tax year 2026-27 the Income-tax Act, 2025 renumbers sections such as 80C. This page uses the familiar numbers; the limits shown are the ones the site's calculators follow.

Worked examples

Example 1: the maximum deposit for 15 years

Deposit ₹1,50,000 every year before 5 April, at 7.1% for 15 years.

• End of year 1: (0 + 1,50,000) × 1.071 = ₹1,60,650
• End of year 2: (1,60,650 + 1,50,000) × 1.071 = ₹3,32,706
• End of year 3: (3,32,706 + 1,50,000) × 1.071 = ₹5,16,978
• End of year 5: ₹9,25,701
• End of year 10: ₹22,30,124
• End of year 15: ₹40,68,209

Total deposited is ₹22,50,000, so interest earned is ₹18,18,209 — all tax-free. Here is the full year-by-year picture, with ₹1,50,000 deposited at the start of each year:

Notice how the yearly interest grows from ₹10,650 in year 1 to ₹2,69,695 in year 15. In the last year alone, interest is larger than the year's deposit. That is compounding at work, and it is why staying the full term — and extending if you can — matters so much in PPF.

Example 2: a smaller yearly deposit

₹50,000 a year at 7.1% for 15 years matures at about ₹13,56,070. You deposit ₹7,50,000 and earn ₹6,06,070 as interest. Even ₹1,000 a month (₹12,000 a year) grows to about ₹3,25,457 on deposits of ₹1,80,000. Starting small and raising the deposit as your income grows is perfectly fine, because PPF lets you change the amount every year as long as it stays between ₹500 and ₹1.5 lakh.

Example 3: extending the account

Continue depositing ₹1.5 lakh a year after maturity, in five-year blocks:

The last five years add more than the first ten, because the interest is now earned on a large balance. If instead you stop depositing at year 15 and simply let ₹40,68,209 sit for five more years at 7.1%, it grows to about ₹57,32,587.

Example 4: when in the year you deposit

The calculator assumes the deposit goes in before 5 April. If you deposit the same ₹1.5 lakh on 1 March each year instead, it earns interest for only one month in that year. Over 15 years at 7.1%, the balance would be about ₹38,20,989 — roughly ₹2.47 lakh less than depositing at the start of the year.

Depositing ₹12,500 before the 5th of every month lands in between, at about ₹39,44,599. The lesson is simple: the earlier in the financial year your money goes in, the more it earns.

How the rate affects your maturity value

The PPF rate is not fixed for the life of the account. Whatever rate the government notifies for a quarter applies to every PPF account for that quarter, including old ones. So the maturity figure is an estimate based on the rate you assume.

The difference between 6.5% and 7.5% on the same deposits is about ₹3.5 lakh over 15 years, and it widens further if you extend. A change in rate affects your existing balance too, not only new deposits, because the notified rate applies to the whole account for that quarter.

Try two or three rates in the calculator to see a range rather than one number. For long-term planning, a rate slightly below the current one gives a safer estimate.

Maturity and the "16 deposits" detail

PPF matures 15 years from the end of the financial year in which you opened it. If you open an account in, say, August 2026 (financial year 2026-27), that year ends on 31 March 2027, and the account matures 15 years later, on 1 April 2042.

Because the year of opening is not counted in the 15, you can deposit in that year and in each of the following 15 years — up to 16 yearly deposits in total. The calculator models a straight 15 deposits over 15 years, so if you open early in a financial year and deposit every year, your real maturity value can be a little higher than the figure shown.

In the final year before maturity, decide early what you want to do. If you plan to extend with deposits, keep the extension form ready so that your next deposit is not treated as irregular. If you plan to close, remember that the money keeps earning PPF interest until you withdraw it, so there is no rush to close on the very first day.

At maturity you have three choices: close the account and take the money, extend it for five years with fresh deposits, or let it continue for five years without deposits. If you do nothing, it continues without deposits and keeps earning interest. To extend with deposits, submit the extension form at your post office or bank within one year of maturity.

Loans, partial withdrawals and early closure

Loan against PPF

A loan is allowed from the third to the sixth financial year (counting the year of opening as the first). The maximum is 25% of the balance at the end of the second year before the year you apply. Using Example 1, if you apply in year 3, the limit is 25% of the year-1 balance of ₹1,60,650, which is about ₹40,162. The loan carries interest at a small margin above the PPF rate, and it must be repaid within the set period.

Partial withdrawal

From the seventh financial year, you can withdraw once a year. The limit is 50% of the lower of two balances: the balance at the end of the fourth year before the year of withdrawal, or the balance at the end of the previous year.

In Example 1, a withdrawal in year 7 is limited to 50% of the lower of ₹5,16,978 (end of year 3) and ₹11,52,076 (end of year 6). That is 50% of ₹5,16,978, or about ₹2,58,489. The withdrawal is tax-free.

Premature closure

After five years from the end of the year of opening, the account can be closed early only for specific reasons — serious illness of the holder or a family member, higher education of the holder or their children, or the holder becoming a non-resident. When closed early, interest for the whole period is reduced by 1%.

Special situations

PPF for a child

A parent can open a PPF account for a minor child. Deposits in the child's account and your own together cannot exceed ₹1.5 lakh in a year, and the 80C deduction is limited accordingly. When the child turns 18, they take over the account.

A missed year

If you do not deposit at least ₹500 in a financial year, the account becomes discontinued. It can be revived by paying ₹500 for each missed year plus a penalty of ₹50 per year. A discontinued account cannot be used for loans or withdrawals until it is revived.

Becoming an NRI

A non-resident cannot open a new PPF account. If you opened it while resident and later move abroad, check the current rules with your post office or bank on continuing the account until maturity.

Moving your account

A PPF account can be transferred from one post office to another, from a post office to a bank, or between banks, without breaking it. The original date of opening, the balance and the maturity date all stay the same. Apply at the branch where the account is held now, and keep a copy of the passbook before the transfer.

Death of the account holder

If the account holder dies, the nominee or legal heir can claim the balance, even before maturity. The account is closed; it cannot be continued in the nominee's name. This is why keeping the nomination updated matters.

More than one account

Only one PPF account is allowed in your own name. A second account, even in another bank, is irregular and may earn no interest. If you have two by mistake, approach the post office or bank to regularise them.

PPF compared with other tax-saving options

PPF is not the only way to use the 80C limit, and it is not always the best fit. Here is how it compares on the points that matter most:

PPF suits money you will not need for a long time and want to keep completely safe — a child's higher education fund or a retirement layer that is guaranteed by the government. ELSS suits people who can take market ups and downs in exchange for a shorter lock-in and potentially higher growth. Many people use both: PPF for stability, ELSS or NPS for growth.

PPF is a poor fit for money you may need within the next few years, such as an emergency fund or a down payment you are planning soon. Partial withdrawals are limited and start only from the seventh year, and early closure is allowed only for specific reasons. Keep short-term money in a savings account, a liquid fund or a fixed deposit instead, and use PPF for the long-term layer.

If you are in the new regime, none of these give an 80C deduction, so compare them only on safety, liquidity and post-tax return. On that test PPF still stands out, because its interest is fully tax-free while FD interest is taxed every year at your slab rate.

Common mistakes PPF investors make

• Depositing late in the year. A March deposit earns barely a month's interest that year. Move the deposit to April if you can.
• Depositing on the 6th or later. Money that arrives after the 5th misses that month's interest. Online transfers made on the 5th can sometimes be credited later, so pay a day or two early.
• Going over ₹1.5 lakh. The excess earns no interest and gets no deduction. Remember the limit includes any minor's account you operate.
• Counting PPF twice under 80C. If EPF and life insurance already fill the ₹1.5 lakh limit, a PPF deposit adds no extra deduction — though the interest is still tax-free.
• Letting the account lapse. Missing the ₹500 minimum means penalty and no loan or withdrawal facility until revived.
• Forgetting the nomination. Add or update a nominee so the balance reaches your family without delay.
• Not reporting PPF interest in the return. It is tax-free, but it should still be shown as exempt income.

PPF in your income tax return

In the old regime, claim your PPF deposit under 80C in the deductions section, along with your other 80C items, keeping the deposit receipt or passbook entry as proof. If you are salaried, also declare it to your employer through Form 12BB so that less TDS is deducted during the year.

PPF interest credited during the year and any amount received on maturity or withdrawal should be shown in the exempt income section of the return. This keeps your return consistent with the information banks and post offices report, and explains the money in your bank account if it is ever questioned.

What to keep for your records

• Passbook or online statement showing each deposit with its date — this is your 80C proof.
• Statement showing interest credited on 31 March each year, for the exempt income section.
• Withdrawal or closure slip, if you took money out during the year.
• Your Form 12BB declaration to the employer, if you are salaried and in the old regime.

If your employer did not consider your PPF deposit while deducting TDS — for example because you deposited after the proof deadline — you can still claim it in your return under the old regime and any excess TDS is adjusted when the return is processed, provided the deposit was made within the same financial year, by 31 March.

If you are comparing PPF with other tax-saving options, the NPS tax benefit calculator shows the separate ₹50,000 deduction available for NPS in the old regime, which sits on top of the 80C limit.

Get it checked by an expert

If you want to know whether PPF fits your tax plan, how it works with your regime choice, or how to report deposits and interest correctly, TaxCaller's expert can review your numbers and handle your income tax filing. The fee is told upfront before any work begins, and the first call is free.