PPF Calculator
Calculate your PPF maturity value over the 15-year lock-in with annual compounding.
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Compound Interest Calculator
Example 1 โ Lump sum, no contributions
A = 1,00,000 ร (1.10)^10 โ โน2,59,374 โ more than 2.5ร growth
๐ What is the PPF Calculator?
PPF (Public Provident Fund) is one of the few investment instruments in India offering completely tax-free returns at a government-guaranteed rate, making it a cornerstone of conservative, long-horizon financial planning. Its defining feature is the 15-year lock-in, which forces a discipline that often works in the saverโs favor but requires understanding upfront before committing funds you might need sooner.
โ๏ธ How PPF Calculator is calculated
Annual compounding, not quarterly
Unlike a bank FD, PPF compounds annually, with interest calculated on the lowest balance held between the 5th and the last day of each month. Depositing early in the month, ideally before the 5th, means that monthโs deposit earns interest for the full month rather than missing out.
The 1.5 lakh annual deposit cap
PPF allows a maximum of 150,000 rupees in deposits per financial year across all your PPF accounts combined. Depositing beyond this cap does not earn additional interest, so contributions should be planned around this limit rather than exceeding it unintentionally.
EEE tax status โ a rare combination
PPF carries Exempt-Exempt-Exempt status: your contribution qualifies for a Section 80C deduction, the interest earned every year is entirely tax-free, and the final maturity amount is also tax-free. Very few investment options in India offer tax-free treatment at all three of these stages simultaneously.
What happens after 15 years
At maturity, you can withdraw the full balance, or extend the account in blocks of 5 years, either with continued contributions or without. Many long-term savers use the extension option specifically to keep the tax-free compounding going well past the initial 15-year term.
PPF maturity (annual compounding)
Each year: Interest = Balance x rate, then Balance = Balance + Deposit + Interest
Repeated for each of the 15 years, with the deposit capped at 150,000 rupees per year
๐งฎ Worked examples
Example 1 โ Maxing out the annual limit
150,000 rupees deposited every year for 15 years at a 7.1% rate.
โ Maturity value is roughly 40-41 lakh rupees, with total contributions of 22.5 lakh rupees and the rest from compounded, tax-free interest
Example 2 โ A smaller, steady contribution
50,000 rupees deposited every year for 15 years at the same rate.
โ Maturity value is roughly 13.5-14 lakh rupees โ proportionally smaller, since PPF growth scales directly with the deposit amount
Example 3 โ Extending past 15 years
After reaching the 15-year maturity in Example 1, the account is extended for another 5-year block with continued maximum contributions.
โ The balance continues compounding tax-free, and by year 20 the maturity value can be meaningfully higher than stopping at year 15, since the existing large balance keeps earning interest on top of new deposits
๐ก Original insights & how to use this calculator
PPF as the foundation of a retirement portfolio
Because of its guaranteed, tax-free, government-backed nature, PPF is commonly used as the stable, low-risk core of a retirement plan, complemented by higher-growth but higher-risk instruments like equity mutual funds for the portion of savings meant to outpace inflation more aggressively.
PPF for a childโs education fund
The long, fixed lock-in period maps naturally onto a childโs education timeline started from birth, since the 15-year maturity often lines up close to when higher-education expenses begin, while the tax-free growth maximizes the usable corpus.
Partial withdrawal rules
Partial withdrawals are permitted from the 7th financial year onward, subject to specific limits tied to the balance at certain points in the accountโs history. This makes PPF less liquid than an FD in the early years, which is worth weighing against its tax advantages.
Loan against PPF
Between the 3rd and 6th year, account holders can take a loan against their PPF balance at a modest interest rate, which can be a useful low-cost borrowing option without disturbing the long-term compounding of the underlying deposit.
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๐ก Expert tips
Deposit before the 5th of the month โ PPF interest is calculated on the lowest balance between the 5th and last day of each month.
You can extend PPF in blocks of 5 years after the initial 15-year term, with or without further contributions.
โ๏ธ Health & Wealth โ pair this with
โ Common questions
What is the PPF annual deposit limit?
โน1,50,000 per financial year, which also qualifies for Section 80C tax deduction.
Is PPF interest taxable?
No โ PPF has Exempt-Exempt-Exempt (EEE) status: contributions, interest, and maturity are all tax-free.
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